AAON (NASDAQ:AAON) Stock Rating Raised to Strong-Buy at Zacks Research

AAON (NASDAQ:AAON) was upgraded by analysts at Zacks Research from a “hold” rating to a “strong-buy” rating in a report released on Thursday, Zacks reports.

Several other analysts have also issued reports on AAON. Robert W. Baird dropped their price objective on AAON from $110.00 to $104.00 and set an “outperform” rating on the stock in a research note on Tuesday, November 10th. Oppenheimer reiterated an “outperform” rating and set a $105.00 target price (down from $115.00) on shares of AAON in a research note on Tuesday. DA Davidson began coverage on AAON in a report on Tuesday, September 15th. They set a “buy” rating and a $110.00 target price on the stock. Weiss Ratings restated a “hold (c)” rating on shares of AAON in a research note on Monday, October 12th. Finally, KeyCorp restated a “sector weight” rating on shares of AAON in a research note on Thursday, August 13th. One equities research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and two have issued a Hold rating to the company’s stock. According to data from MarketBeat, AAON has a consensus rating of “Moderate Buy” and an average price target of $106.33.

AAON Stock Performance

Shares of AAON traded up $1.45 during midday trading on Thursday, reaching $80.25. The stock had a trading volume of 1,460,830 shares, compared to its average volume of 1,567,883. The firm has a 50 day simple moving average of $76.86 and a 200-day simple moving average of $96.48. AAON has a one year low of $53.13 and a one year high of $150.46. The firm has a market cap of $6.62 billion, a PE ratio of 33.72, a P/E/G ratio of 1.29 and a beta of 1.45. The company has a current ratio of 2.82, a quick ratio of 2.01 and a debt-to-equity ratio of 0.36.

AAON (NASDAQ:AAON) last released its quarterly earnings data on Monday, November 9th. The construction company reported $0.83 earnings per share for the quarter, topping the consensus estimate of $0.57 by $0.26. AAON had a net margin of 8.75% and a return on equity of 20.23%. The company had revenue of $707.43 million for the quarter, compared to analyst estimates of $601.19 million. During the same period in the previous year, the business earned $0.37 EPS. AAON’s revenue for the quarter was up 84.1% compared to the same quarter last year. As a group, sell-side analysts anticipate that AAON will post 2.66 EPS for the current year.

Insider Buying and Selling

In other news, EVP Matthew Shaub purchased 457 shares of the company’s stock in a transaction that occurred on Friday, August 28th. The stock was acquired at an average cost of $76.42 per share, with a total value of $34,923.94. Following the acquisition, the executive vice president owned 3,136 shares in the company, valued at approximately $239,653.12. This trade represents a 17.06% increase in their position. The acquisition was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director David Stewart purchased 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were purchased at an average cost of $74.66 per share, with a total value of $74,660.00. Following the completion of the acquisition, the director owned 4,000 shares in the company, valued at $298,640. The trade was a 33.33% increase in their position. The SEC filing for this purchase provides additional information. 18.09% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On AAON

A number of institutional investors have recently modified their holdings of the business. Marshall Wace LLP raised its stake in AAON by 13,668.3% in the 3rd quarter. Marshall Wace LLP now owns 368,714 shares of the construction company’s stock worth $30,515,000 after purchasing an additional 366,036 shares in the last quarter. Healthcare of Ontario Pension Plan Trust Fund bought a new stake in AAON in the 3rd quarter valued at about $4,196,000. State Board of Administration of Florida Retirement System grew its position in shares of AAON by 0.5% during the 3rd quarter. State Board of Administration of Florida Retirement System now owns 50,911 shares of the construction company’s stock worth $4,213,000 after purchasing an additional 242 shares in the last quarter. AlphaGrep UK Ltd grew its position in shares of AAON by 29.0% during the 3rd quarter. AlphaGrep UK Ltd now owns 5,415 shares of the construction company’s stock worth $448,000 after purchasing an additional 1,217 shares in the last quarter. Finally, First Trust Advisors LP grew its position in shares of AAON by 31.9% during the 3rd quarter. First Trust Advisors LP now owns 2,082,991 shares of the construction company’s stock worth $172,388,000 after purchasing an additional 503,819 shares in the last quarter. Institutional investors own 70.81% of the company’s stock.

AAON News Summary

Here’s some of the latest news about AAON:

• Positive Sentiment: The company expanded and refinanced its senior credit facility, increasing potential borrowing capacity from $600 million to as much as $1.2 billion. The added capacity may help fund continued growth, though borrowing availability is not the same as cash on hand. The Aaon Group Announces Expansion of Credit Facility
• Positive Sentiment: Zacks upgraded AAON to Rank #1 (Strong Buy), citing improving earnings prospects and estimate revisions—an encouraging near-term signal, though ratings do not guarantee performance. What Makes AAON a New Strong Buy Stock
• Neutral Sentiment: Analyst price targets imply potential upside, and one valuation article described the shares as possibly undervalued. These are estimates rather than assured returns, particularly after a sharp recent rally. AAON Could Be 33% Undervalued

AAON Company Profile

AAON, Inc. designs and manufactures heating, ventilation and air-conditioning (HVAC) equipment for commercial and industrial buildings. Founded in 1988, the company is headquartered in Tulsa, Oklahoma, and sells products under the AAON and BASX brands. Its products include rooftop units, chillers, air-handling units, heat pumps and other custom HVAC systems. BASX specializes in equipment for data centers and other demanding applications, while AAON also offers controls and related services. AAON serves customers primarily in North America, with products also reaching international markets through its sales and distribution network.