AAR (NYSE:AIR) Shares Gap Up After Strong Earnings

AAR Corp. (NYSE:AIR) shares gapped up before the market opened on Wednesday following a better than expected earnings announcement. The stock had previously closed at $61.75, but opened at $66.00. AAR shares last traded at $68.28, with a volume of 121,218 shares changing hands.

The aerospace company reported $0.90 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.07. The firm had revenue of $686.10 million for the quarter, compared to analysts’ expectations of $654.47 million. AAR had a net margin of 2.67% and a return on equity of 10.22%. The business’s revenue was up 25.8% on a year-over-year basis. During the same period in the prior year, the firm earned $0.81 EPS.

Wall Street Analyst Weigh In

Several analysts recently issued reports on AIR shares. Royal Bank of Canada reiterated an “outperform” rating and set a $75.00 price target on shares of AAR in a research report on Monday, November 4th. Benchmark reiterated a “buy” rating and set a $83.00 price target on shares of AAR in a research report on Friday, October 4th. Finally, StockNews.com lowered shares of AAR from a “hold” rating to a “sell” rating in a research report on Thursday. One research analyst has rated the stock with a sell rating and four have given a buy rating to the company’s stock. Based on data from MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $81.00.

Institutional Trading of AAR

Hedge funds have recently added to or reduced their stakes in the stock. Amalgamated Bank raised its stake in shares of AAR by 1.7% during the third quarter. Amalgamated Bank now owns 10,319 shares of the aerospace company’s stock valued at $674,000 after acquiring an additional 177 shares during the last quarter. Captrust Financial Advisors raised its stake in shares of AAR by 5.3% during the third quarter. Captrust Financial Advisors now owns 3,537 shares of the aerospace company’s stock valued at $231,000 after acquiring an additional 177 shares during the last quarter. HighTower Advisors LLC raised its stake in shares of AAR by 6.1% during the third quarter. HighTower Advisors LLC now owns 3,818 shares of the aerospace company’s stock valued at $249,000 after acquiring an additional 220 shares during the last quarter. EverSource Wealth Advisors LLC raised its stake in shares of AAR by 43.0% during the second quarter. EverSource Wealth Advisors LLC now owns 778 shares of the aerospace company’s stock valued at $57,000 after acquiring an additional 234 shares during the last quarter. Finally, Truist Financial Corp raised its stake in shares of AAR by 3.4% during the second quarter. Truist Financial Corp now owns 9,040 shares of the aerospace company’s stock valued at $657,000 after acquiring an additional 296 shares during the last quarter. Institutional investors and hedge funds own 90.74% of the company’s stock.

AAR Price Performance

The company’s 50 day moving average price is $64.69 and its 200-day moving average price is $65.30. The stock has a market cap of $2.41 billion, a P/E ratio of 36.84 and a beta of 1.61. The company has a quick ratio of 1.45, a current ratio of 3.06 and a debt-to-equity ratio of 0.81.

AAR Company Profile

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.