StandardAero (NYSE:SARO) Sees Large Volume Increase – Here’s Why

StandardAero, Inc. (NYSE:SARO) shares saw unusually-high trading volume on Wednesday . Approximately 10,088,881 shares changed hands during trading, an increase of 157% from the previous session’s volume of 3,918,707 shares.The stock last traded at $31.7730 and had previously closed at $33.12.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on SARO. UBS Group cut their price objective on shares of StandardAero from $35.00 to $34.00 and set a “neutral” rating on the stock in a report on Thursday, January 15th. Wall Street Zen lowered StandardAero from a “buy” rating to a “hold” rating in a research note on Saturday, October 11th. Zacks Research cut StandardAero from a “hold” rating to a “strong sell” rating in a report on Friday, January 23rd. Truist Financial initiated coverage on shares of StandardAero in a report on Friday, October 10th. They issued a “buy” rating and a $35.00 target price on the stock. Finally, Sanford C. Bernstein reiterated an “outperform” rating on shares of StandardAero in a report on Monday, November 24th. Three investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the company currently has an average rating of “Hold” and a consensus price target of $33.57.

StandardAero Trading Down 3.5%

The business’s 50-day simple moving average is $28.79 and its 200-day simple moving average is $28.01. The company has a current ratio of 2.18, a quick ratio of 1.48 and a debt-to-equity ratio of 0.89. The company has a market cap of $10.68 billion, a PE ratio of 58.10 and a beta of 1.04.

StandardAero (NYSE:SARO) last announced its quarterly earnings data on Monday, November 10th. The company reported $0.20 earnings per share (EPS) for the quarter, hitting the consensus estimate of $0.20. StandardAero had a return on equity of 9.63% and a net margin of 3.15%.The business had revenue of $1.50 billion during the quarter, compared to analyst estimates of $1.43 billion. During the same period last year, the company earned $0.06 earnings per share. StandardAero’s quarterly revenue was up 20.4% compared to the same quarter last year. As a group, analysts expect that StandardAero, Inc. will post 0.29 EPS for the current fiscal year.

StandardAero declared that its board has approved a stock buyback program on Wednesday, December 10th that allows the company to buyback $450.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 5% of its shares through open market purchases. Shares buyback programs are typically a sign that the company’s board of directors believes its stock is undervalued.

Insider Buying and Selling at StandardAero

In other news, CEO Russell Wayne Ford sold 40,000 shares of the company’s stock in a transaction dated Wednesday, January 7th. The stock was sold at an average price of $30.24, for a total transaction of $1,209,600.00. Following the completion of the sale, the chief executive officer owned 886,955 shares in the company, valued at approximately $26,821,519.20. This represents a 4.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink.

Hedge Funds Weigh In On StandardAero

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Comerica Bank acquired a new stake in StandardAero during the first quarter worth $26,000. State of Wyoming acquired a new stake in StandardAero in the 3rd quarter valued at $27,000. First Horizon Advisors Inc. grew its position in StandardAero by 100.4% in the second quarter. First Horizon Advisors Inc. now owns 1,016 shares of the company’s stock valued at $32,000 after acquiring an additional 509 shares during the period. First Horizon Corp bought a new position in shares of StandardAero during the third quarter valued at $34,000. Finally, Aventura Private Wealth LLC acquired a new stake in shares of StandardAero in the 4th quarter valued at $45,000.

StandardAero Company Profile

StandardAero is a global aerospace maintenance, repair and overhaul (MRO) provider specializing in gas turbine engines, auxiliary power units (APUs), airframe components and oil & gas rotating equipment. The company offers a full suite of technical services including engine repair and overhaul, component repair, accessory maintenance, parts manufacturing and on-site field support. Its customer base spans commercial airlines, business and general aviation operators, regional carriers, original equipment manufacturers (OEMs) and defense organizations.

With roots dating back to 1911, StandardAero has grown through strategic acquisitions and organic expansion to become one of the largest independent MRO providers in the industry.