StandardAero (NYSE:SARO) Sees Strong Trading Volume – Here’s Why

StandardAero, Inc. (NYSE:SARO) saw strong trading volume on Wednesday . 10,088,881 shares traded 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.

Wall Street Analyst Weigh In

SARO has been the subject of several recent analyst reports. Sanford C. Bernstein reaffirmed an “outperform” rating on shares of StandardAero in a report on Monday, November 24th. UBS Group decreased their target price on StandardAero from $35.00 to $34.00 and set a “neutral” rating on the stock in a research note on Thursday, January 15th. Zacks Research downgraded StandardAero from a “hold” rating to a “strong sell” rating in a research note on Friday, January 23rd. Susquehanna set a $38.00 price objective on shares of StandardAero in a research report on Thursday, January 15th. Finally, Royal Bank Of Canada restated an “outperform” rating and set a $37.00 target price on shares of StandardAero in a research report on Thursday. Four investment analysts have rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, StandardAero currently has an average rating of “Hold” and a consensus target price of $34.00.

StandardAero Stock Down 0.9%

The company has a debt-to-equity ratio of 0.89, a quick ratio of 1.48 and a current ratio of 2.18. The company has a fifty day moving average of $29.06 and a two-hundred day moving average of $28.05. The company has a market cap of $10.34 billion, a PE ratio of 56.20 and a beta of 1.04.

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

StandardAero announced that its Board of Directors has authorized a stock buyback program on Wednesday, December 10th that permits the company to repurchase $450.00 million in shares. This repurchase authorization permits the company to purchase up to 5% of its stock through open market purchases. Stock repurchase programs are generally a sign that the company’s management believes its shares are undervalued.

Insider Buying and Selling at StandardAero

In related news, CEO Russell Wayne Ford sold 40,000 shares of the company’s stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $30.24, for a total value of $1,209,600.00. Following the completion of the sale, the chief executive officer directly owned 886,955 shares of the company’s stock, valued at $26,821,519.20. This represents a 4.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 1.90% of the stock is owned by insiders.

Institutional Trading of StandardAero

Several hedge funds have recently modified their holdings of the company. Comerica Bank acquired a new stake in shares of StandardAero in the 1st quarter worth $26,000. State of Wyoming acquired a new stake in StandardAero in the third quarter worth about $27,000. First Horizon Advisors Inc. grew its stake in shares of StandardAero by 100.4% during the second quarter. First Horizon Advisors Inc. now owns 1,016 shares of the company’s stock worth $32,000 after acquiring an additional 509 shares during the last quarter. First Horizon Corp acquired a new position in shares of StandardAero during the third quarter valued at about $34,000. Finally, Aventura Private Wealth LLC purchased a new position in shares of StandardAero in the 4th quarter valued at approximately $45,000.

About StandardAero

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.