AAR (NYSE:AIR) Hits New 12-Month Low Following Analyst Downgrade

AAR Corp. (NYSE:AIR) hit a new 52-week low during mid-day trading on Monday after StockNews.com downgraded the stock from a hold rating to a sell rating. The stock traded as low as $54.22 and last traded at $55.12, with a volume of 158599 shares trading hands. The stock had previously closed at $57.14.

A number of other analysts also recently weighed in on AIR. Truist Financial decreased their target price on shares of AAR from $81.00 to $78.00 and set a “buy” rating for the company in a research report on Friday. KeyCorp started coverage on shares of AAR in a research report on Thursday, January 16th. They set an “overweight” rating and a $83.00 price objective for the company. One investment analyst has rated the stock with a sell rating, four have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $80.80.

Insiders Place Their Bets

In other AAR news, CEO John Mcclain Holmes III sold 5,000 shares of the firm’s stock in a transaction that occurred on Friday, January 17th. The stock was sold at an average price of $70.81, for a total value of $354,050.00. Following the completion of the sale, the chief executive officer now owns 341,680 shares of the company’s stock, valued at approximately $24,194,360.80. This trade represents a 1.44 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, CFO Sean M. Gillen sold 17,385 shares of the company’s stock in a transaction that occurred on Friday, January 10th. The stock was sold at an average price of $66.33, for a total value of $1,153,147.05. Following the transaction, the chief financial officer now directly owns 72,326 shares in the company, valued at $4,797,383.58. The trade was a 19.38 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 185,793 shares of company stock worth $12,538,396. Corporate insiders own 4.10% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. raised its holdings in shares of AAR by 1.6% in the 4th quarter. Vanguard Group Inc. now owns 3,840,885 shares of the aerospace company’s stock worth $235,369,000 after acquiring an additional 58,694 shares during the last quarter. Westwood Holdings Group Inc. increased its holdings in AAR by 8.7% during the 4th quarter. Westwood Holdings Group Inc. now owns 1,441,154 shares of the aerospace company’s stock worth $88,314,000 after purchasing an additional 115,476 shares in the last quarter. Invesco Ltd. raised its stake in shares of AAR by 13.5% in the fourth quarter. Invesco Ltd. now owns 1,070,618 shares of the aerospace company’s stock worth $65,607,000 after purchasing an additional 127,148 shares during the last quarter. Franklin Resources Inc. lifted its holdings in shares of AAR by 13.4% in the third quarter. Franklin Resources Inc. now owns 969,741 shares of the aerospace company’s stock valued at $59,591,000 after purchasing an additional 114,460 shares in the last quarter. Finally, American Century Companies Inc. boosted its position in shares of AAR by 2.4% during the fourth quarter. American Century Companies Inc. now owns 893,822 shares of the aerospace company’s stock valued at $54,773,000 after buying an additional 20,794 shares during the last quarter. 90.74% of the stock is currently owned by institutional investors and hedge funds.

AAR Price Performance

The firm has a market cap of $2.01 billion, a P/E ratio of 200.25 and a beta of 1.58. The company has a fifty day moving average of $66.40 and a 200-day moving average of $65.38. The company has a debt-to-equity ratio of 0.84, a current ratio of 2.68 and a quick ratio of 1.27.

AAR (NYSE:AIR) last posted its earnings results on Thursday, March 27th. The aerospace company reported $0.99 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.96 by $0.03. AAR had a net margin of 0.41% and a return on equity of 10.46%. The firm had revenue of $678.20 million during the quarter, compared to analyst estimates of $699.13 million. During the same quarter in the prior year, the business posted $0.85 EPS. The business’s revenue was up 19.5% compared to the same quarter last year. On average, sell-side analysts anticipate that AAR Corp. will post 3.77 EPS for the current fiscal year.

About AAR

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The Parts Supply segment leases and sells aircraft components and replacement parts. The Repair & Engineering segment provides airframe maintenance services, such as airframe inspection, painting, line maintenance, airframe modification, structural repair, avionics service and installation, exterior and interior refurbishment, and engineering and support services; component repair services comprising maintenance, repair, and overhaul (MRO) services, engine and airframe accessories, and interior refurbishment; and landing gear overhaul services, including repair services on wheels and brakes.