AAR (NYSE:AIR) Shares Gap Up After Better-Than-Expected Earnings

Shares of AAR Corp. (NYSE:AIR) gapped up prior to trading on Wednesday following a stronger than expected earnings report. 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 trading hands.

The aerospace company reported $0.90 EPS for the quarter, topping the consensus estimate of $0.83 by $0.07. AAR had a return on equity of 10.22% and a net margin of 2.67%. The company had revenue of $686.10 million during the quarter, compared to the consensus estimate of $654.47 million. During the same period last year, the company earned $0.81 EPS. AAR’s revenue for the quarter was up 25.8% on a year-over-year basis.

Analyst Ratings Changes

A number of analysts have commented on AIR shares. Benchmark restated a “buy” rating and issued a $83.00 price target on shares of AAR in a research report on Friday, October 4th. Royal Bank of Canada restated an “outperform” rating and issued a $75.00 price target on shares of AAR in a research report on Monday, November 4th. Finally, StockNews.com raised AAR from a “sell” rating to a “hold” rating in a research report on Monday, October 21st. One analyst has rated the stock with a hold rating and four have issued a buy rating to the company. According to MarketBeat, AAR presently has a consensus rating of “Moderate Buy” and a consensus target price of $81.00.

Institutional Investors Weigh In On AAR

Institutional investors have recently added to or reduced their stakes in the stock. Amalgamated Bank increased its position in AAR by 1.7% during the 3rd quarter. Amalgamated Bank now owns 10,319 shares of the aerospace company’s stock valued at $674,000 after buying an additional 177 shares in the last quarter. Captrust Financial Advisors increased its holdings 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 in the last quarter. HighTower Advisors LLC raised its position in shares of AAR by 6.1% in the 3rd quarter. HighTower Advisors LLC now owns 3,818 shares of the aerospace company’s stock valued at $249,000 after purchasing an additional 220 shares during the last quarter. EverSource Wealth Advisors LLC boosted its stake in AAR by 43.0% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 778 shares of the aerospace company’s stock worth $57,000 after purchasing an additional 234 shares in the last quarter. Finally, Truist Financial Corp grew its position in AAR by 3.4% during the 2nd quarter. Truist Financial Corp now owns 9,040 shares of the aerospace company’s stock worth $657,000 after purchasing an additional 296 shares during the last quarter. Institutional investors own 90.74% of the company’s stock.

AAR Trading Up 10.8 %

The stock’s fifty day simple moving average is $64.56 and its 200-day simple moving average is $65.29. The company has a debt-to-equity ratio of 0.81, a current ratio of 3.06 and a quick ratio of 1.45. The firm has a market cap of $2.46 billion, a PE ratio of 37.60 and a beta of 1.61.

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.