AAR (AIR) Lowered to Hold at Zacks Investment Research

Zacks Investment Research downgraded shares of AAR (NYSE:AIR) from a buy rating to a hold rating in a report published on Wednesday.

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.”

A number of other brokerages have also recently weighed in on AIR. Seaport Global Securities reissued a buy rating and issued a $52.00 price target on shares of AAR in a research note on Friday, July 13th. SunTrust Banks cut AAR from a buy rating to a hold rating and dropped their price target for the stock from $50.00 to $47.00 in a research note on Tuesday, September 11th. Canaccord Genuity reissued a buy rating and issued a $52.00 price target (up previously from $48.00) on shares of AAR in a research note on Wednesday, July 11th. Finally, ValuEngine cut AAR from a buy rating to a hold rating in a research note on Wednesday. Three research analysts have rated the stock with a hold rating and four have assigned a buy rating to the stock. The company currently has an average rating of Buy and a consensus price target of $50.80.

Shares of AIR opened at $42.76 on Wednesday. The stock has a market capitalization of $1.51 billion, a P/E ratio of 23.89 and a beta of 1.24. AAR has a 1-year low of $34.93 and a 1-year high of $49.05. The company has a debt-to-equity ratio of 0.19, a quick ratio of 1.45 and a current ratio of 2.83.

AAR (NYSE:AIR) last issued its quarterly 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. The firm had revenue of $474.00 million for the quarter, compared to analysts’ expectations of $483.51 million. AAR had a return on equity of 6.39% and a net margin of 0.85%. AAR’s revenue was up 5.1% on a year-over-year basis. During the same quarter last year, the business posted $0.44 EPS. equities analysts forecast that AAR will post 2.66 EPS for the current year.

In other AAR news, VP Robert J. Regan sold 24,239 shares of the firm’s stock in a transaction dated Tuesday, July 31st. The stock was sold at an average price of $47.36, for a total transaction of $1,147,959.04. Following the completion of the sale, the vice president now directly owns 116,777 shares in the company, valued at approximately $5,530,558.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CAO Eric Pachapa sold 3,000 shares of the firm’s stock in a transaction dated Thursday, August 2nd. The stock was sold at an average price of $46.75, for a total value of $140,250.00. Following the sale, the chief accounting officer now owns 9,626 shares of the company’s stock, valued at $450,015.50. The disclosure for this sale can be found here. Insiders have sold a total of 102,739 shares of company stock valued at $4,850,280 over the last 90 days. Corporate insiders own 7.43% of the company’s stock.

A number of hedge funds and other institutional investors have recently made changes to their positions in the business. WINTON GROUP Ltd boosted its position in AAR by 27.5% during the 2nd quarter. WINTON GROUP Ltd now owns 7,665 shares of the aerospace company’s stock worth $356,000 after acquiring an additional 1,651 shares during the period. Rhumbline Advisers boosted its position in AAR by 2.0% during the 1st quarter. Rhumbline Advisers now owns 88,698 shares of the aerospace company’s stock worth $3,912,000 after acquiring an additional 1,755 shares during the period. Thrivent Financial for Lutherans boosted its position in AAR by 9.0% during the 1st quarter. Thrivent Financial for Lutherans now owns 21,746 shares of the aerospace company’s stock worth $959,000 after acquiring an additional 1,793 shares during the period. Federated Investors Inc. PA boosted its position in AAR by 144.1% during the 1st quarter. Federated Investors Inc. PA now owns 3,146 shares of the aerospace company’s stock worth $139,000 after acquiring an additional 1,857 shares during the period. Finally, Aperio Group LLC boosted its position in AAR by 11.5% during the 2nd quarter. Aperio Group LLC now owns 18,397 shares of the aerospace company’s stock worth $855,000 after acquiring an additional 1,897 shares during the period. Hedge funds and other institutional investors own 93.93% of the company’s stock.

AAR Company Profile

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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