Are You Looking To Buy AAR Corp. (AIR)? First, Read This

AAR Corp. (NYSE:AIR) finished Friday with an addition of $1.11 to close at $34.96, an upside of 3.28 percent. An average of 277,500 shares of common stock have been traded in the last five days. There was a gain of $1.12 in the past week, and it reached a new high 29 times over the past 12 months. The last 20 days have seen an average of 272,015 shares traded, while the 50-day average volume stands at 254,294.

AIR stock has increased by 5.17% in the last month. The company shares reached their 1-month lowest point of $31.73 on 09/24/21. With the stock rallying to its 52-week high on 03/12/21, shares of the company touched a low of $18.22 and a high of $45.49 in 52 weeks. It has reached a new high 12 times so far this year and lost -3.48% or -$1.26 in price. In spite of this, the price is down -23.15% from the 52-week high.


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Insider Transactions

85 days have passed since AAR Corp. (AIR) last reported insider trading activity. Pachapa Eric, who is VP-CAO & Controller, most recently acquired $4,400 shares at $35.68 per share on Jul 30. In this transaction, the insider spent $156,996. Director, STORCH DAVID P, disposed of 2,000 shares at a price of $42.12 on Apr 06. The insider now owns more than $84,236 worth of shares. Prior to that, Director STORCH DAVID P went on to Sale 22,724 shares at $42.14 each on Apr 05. An amount of $957,594 was transacted.

Valuation Metrics

AAR Corp. (AIR) has a trailing price-to-earnings (P/E) ratio of 17.48, which compares with the 18.50 for the broader industry and 29.83 for the sector. In the last five years, AAR Corp.’s PE ratio has ranged between 576.44 and 7.675. The stock’s beta is 1.78. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 0.71, the price-to-book (PB) ratio at 1.24, and the price-to-cash flow ratio at 20.46.

AAR Corp. pays a $0.30 dividend per share annually. It offers a dividend yield of 0.86%. The company’s most recent quarterly dividend payment took place on Apr. 9, and it was $0.0750 a share, without any change from last year. Dividends have grown by -50.00% each year over the last three years.

The quick ratio of AAR Corp. for the three months ended May 30 was 1.30, and the current ratio was 2.90, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.13 and a total debt to equity ratio of 0.13 for the quarter ending May 30. AAR Corp.’s EBITDA margin for the year ending May 30 is 11.13%, while its operating margin for the same period stands at 5.60%. Its gross profit as reported stood at $275.9 million compared to revenue of $1.65 billion.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, AAR Corp.’s return on assets was 3.80%. For the broader industry, ROE averaged 8.06 over the past year.

Earnings Surprise

For the three-month period that ended May 30, AAR Corp. had $127.6 million in total debt. In the quarter under review, the net income was up than the previous quarter. The company posted a net income of $11.5 million in the quarter, while revenues were grew 226.09%. The analyst consensus anticipated AAR Corp.’s latest quarter earnings to come in at $0.47 per share, but it turned out to be $0.47, a 0.00% surprise. For the quarter, EBITDA amounted to $24.0 million. Shareholders own equity worth $35.47 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at AAR Corp. (AIR) price momentum. RSI 9-day as of the close on 22 October was 66.76%, suggesting the stock is Neutral, with historical volatility in this time frame at 26.35%.

As of today, AIR’s price is $33.81 +3.31% or $1.12 from its 5-day moving average. AIR is currently trading +6.26% higher than its 20-day SMA and -15.82% lower than its 100-day SMA. However, the stock’s current price level is +0.84% above the SMA50 and -9.48% below the SMA200.

The stochastic %K and %D were 76.01% and 63.27%, respectively, and the average true range (ATR) was 0.96. With the 14-day stochastic at 91.58% and the average true range at 0.98, the RSI (14) stands at 61.34%. The stock has reached 0.56 on the 9-day MACD Oscillator while the 14-day reading was at 0.56.

Analyst Ratings

RBC Capital Mkts launched coverage on AAR Corp. (NYSE: AIR) in its analyst report released on October 22, 2021. The firm assigned the stock a an Outperform rating. The consensus rating for AAR Corp. (AIR) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell AIR, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 3 others rate it as a “buy”.

What is AIR’s price target for the next 12 months?

Analysts predict a range of price targets between $45.00 and $52.00, with a median target of $50.00. Taking a look at these predictions, the average price target given by analysts for AAR Corp. (AIR) stock is $49.00.

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