A number of research firms have changed their ratings and price targets for AAR (NYSE: AIR):

  • 9/18/2018 – AAR was upgraded by analysts at ValuEngine from a “hold” rating to a “buy” rating.
  • 9/12/2018 – AAR was downgraded by analysts at Zacks Investment Research from a “buy” rating to a “hold” rating. According to Zacks, “AAR Corp. expects its supply chain to witness strong growth with continued demand in MRO businesses. The company’s Aviation Services segment continues to benefit significantly from its strong position in the growing global aviation market. Going ahead, a favorable trend in both commercial, government and defense customers for comprehensive supply chain and maintenance programs should continue to drive this segment’s growth. It's shares also outperformed its industry in past one year. However, the company is exposed to currency fluctuation risks due to its geographically expanded client base and operations beyond the U.S.  AAR Corp. operates in a space that is highly competitive, and consists of both big and small industry players. To keep up with other players in this space, the company will have to spend substantially for technological progress that could adversely affect its operations and financial condition.”
  • 9/12/2018 – AAR was downgraded by analysts at ValuEngine from a “buy” rating to a “hold” rating.
  • 9/11/2018 – AAR was downgraded by analysts at SunTrust Banks, Inc. from a “buy” rating to a “hold” rating. They now have a $47.00 price target on the stock, down previously from $50.00.
  • 9/11/2018 – AAR was upgraded by analysts at Zacks Investment Research from a “hold” rating to a “buy” rating. They now have a $52.00 price target on the stock. According to Zacks, “AAR Corp. expects its supply chain to witness strong growth with continued demand in MRO businesses. The company’s Aviation Services segment continues to benefit significantly from its strong position in the growing global aviation market. Going ahead, a favorable trend in both commercial, government and defense customers for comprehensive supply chain and maintenance programs should continue to drive this segment’s growth. A strong cash balance position allows AAR Corp. to reward back its shareholders with notable dividend payouts as well as finances its repurchase programs. It's shares also outperformed its industry in past one year. However, the company is exposed to currency fluctuation risks due to its geographically expanded client base and operations beyond the U.S.”
  • 8/16/2018 – AAR had its “buy” rating reaffirmed by analysts at Canaccord Genuity. They now have a $52.00 price target on the stock. They wrote, “We are adjusting our Q1/19 revenue estimate by ~$40M due to timing issues in the MRO market. Specifically, the delays in new A320 and 737 aircraft deliveries, due largely to delays in new engine deliveries, have resulted in stronger-than-expected demand for the current aircraft fleet. Typically, when airline MRO activity hits its usual seasonal low in the summer, AAR can offset this decline at least partially with one-off visits from lessor-owned aircraft. As a result of the ~125 new aircraft delivery delays, lessors are not taking aircraft in for MRO at the usual rate. This is creating a revenue headwind for AAR in fiscal Q1/19. Management highlighted its Q1/19 outlook at our recent Global Growth Conference.””

Shares of NYSE AIR opened at $44.91 on Monday. AAR Corp. has a 1-year low of $36.46 and a 1-year high of $49.05. The stock has a market capitalization of $1.57 billion, a price-to-earnings ratio of 25.09 and a beta of 1.24. The company has a quick ratio of 1.45, a current ratio of 2.83 and a debt-to-equity ratio of 0.19.

AAR (NYSE:AIR) last announced its earnings results on Tuesday, July 10th. The aerospace company reported $0.54 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.51 by $0.03. AAR had a net margin of 0.85% and a return on equity of 6.39%. The company had revenue of $474.00 million during the quarter, compared to the consensus estimate of $483.51 million. During the same period in the previous year, the firm posted $0.44 earnings per share. The company’s revenue was up 5.1% on a year-over-year basis. equities research analysts anticipate that AAR Corp. will post 2.66 earnings per share for the current year.

In related news, CAO Eric Pachapa sold 3,000 shares of the business’s stock in a transaction that occurred on Thursday, August 2nd. The shares were sold at an average price of $46.75, for a total transaction of $140,250.00. Following the completion of the sale, the chief accounting officer now directly owns 9,626 shares of the company’s stock, valued at $450,015.50. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director David P. Storch sold 63,736 shares of the business’s stock in a transaction that occurred on Thursday, July 26th. The stock was sold at an average price of $47.20, for a total transaction of $3,008,339.20. Following the sale, the director now directly owns 705,281 shares of the company’s stock, valued at $33,289,263.20. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 102,739 shares of company stock valued at $4,850,280. Insiders own 7.43% of the company’s stock.

Several institutional investors and hedge funds have recently bought and sold shares of AIR. State of Wisconsin Investment Board acquired a new position in AAR during the second quarter valued at approximately $2,162,000. Waddell & Reed Financial Inc. acquired a new position in AAR during the second quarter valued at approximately $1,316,000. Federated Investors Inc. PA grew its holdings in AAR by 6,834.5% during the second quarter. Federated Investors Inc. PA now owns 218,159 shares of the aerospace company’s stock valued at $10,142,000 after purchasing an additional 215,013 shares during the period. Schwab Charles Investment Management Inc. grew its holdings in AAR by 4.6% during the second quarter. Schwab Charles Investment Management Inc. now owns 350,002 shares of the aerospace company’s stock valued at $16,272,000 after purchasing an additional 15,377 shares during the period. Finally, Globeflex Capital L P acquired a new position in AAR during the second quarter valued at approximately $326,000. 93.92% of the stock is owned by institutional investors and hedge funds.

AAR Corp. provides products and services to commercial aviation, government, and defense markets worldwide. The company operates in two segments, Aviation Services and Expeditionary Services. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services.

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