AAR Corp. (NYSE:AIR) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report released on Thursday.

According to Zacks, “AAR Corp. is the largest independent maintenance, repair and overhaul (MRO) provider in North America. Moving ahead, rising air traffic is expected to accelerate maintenance spending on aircraft significantly and drive the MRO services growth cycle. However, AAR Corp.’s share price underperformed the broader market over the last year. Again, a comparative analysis of the company’s P/E ratio reflects a relatively gloomy picture that might be a cause for its investors’ concern. Also, the company operates in a highly competitive space and is subject to stringent government regulations. Any negative revision in the defense budget could also dampen its top line.”

A number of other equities research analysts have also recently commented on the stock. BidaskClub upgraded shares of AAR Corp. from a “sell” rating to a “hold” rating in a research report on Thursday, July 6th. Noble Financial reiterated a “buy” rating on shares of AAR Corp. in a research report on Thursday, July 13th. Canaccord Genuity initiated coverage on shares of AAR Corp. in a research report on Wednesday, September 6th. They issued a “hold” rating and a $40.00 target price for the company. Finally, Seaport Global Securities initiated coverage on shares of AAR Corp. in a research report on Tuesday. They issued a “neutral” rating and a $39.00 target price for the company. One analyst has rated the stock with a sell rating, three have given a hold rating and five have issued a buy rating to the company. AAR Corp. presently has a consensus rating of “Hold” and an average price target of $44.71.

Shares of AAR Corp. (NYSE:AIR) traded up 0.34% during trading on Thursday, hitting $35.37. 351,105 shares of the company’s stock were exchanged. AAR Corp. has a 12-month low of $27.36 and a 12-month high of $38.75. The company has a 50-day moving average of $35.82 and a 200-day moving average of $35.04. The company has a market cap of $1.19 billion, a P/E ratio of 21.65 and a beta of 1.39.

AAR Corp. (NYSE:AIR) last posted its quarterly earnings data on Tuesday, July 11th. The aerospace company reported $0.44 earnings per share for the quarter, topping the Zacks’ consensus estimate of $0.43 by $0.01. The company had revenue of $492.30 million during the quarter, compared to analysts’ expectations of $486.93 million. AAR Corp. had a net margin of 3.20% and a return on equity of 5.69%. The firm’s revenue for the quarter was up 5.1% on a year-over-year basis. During the same period in the prior year, the business posted $0.32 earnings per share. On average, equities analysts expect that AAR Corp. will post $1.78 earnings per share for the current fiscal year.

AAR Corp. announced that its Board of Directors has initiated a share buyback plan on Tuesday, July 11th that permits the company to repurchase $250.00 million in shares. This repurchase authorization permits the aerospace company to buy up to 20.2% of its shares through open market purchases. Shares repurchase plans are usually a sign that the company’s management believes its stock is undervalued.

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In related news, Vice Chairman Timothy J. Romenesko sold 43,200 shares of the company’s stock in a transaction dated Monday, July 17th. The shares were sold at an average price of $37.28, for a total value of $1,610,496.00. Following the completion of the sale, the insider now owns 317,665 shares of the company’s stock, valued at $11,842,551.20. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Ronald B. Woodard sold 20,000 shares of the company’s stock in a transaction dated Thursday, July 13th. The shares were sold at an average price of $37.22, for a total transaction of $744,400.00. Following the completion of the sale, the director now directly owns 20,073 shares of the company’s stock, valued at approximately $747,117.06. The disclosure for this sale can be found here. Insiders sold 91,840 shares of company stock valued at $3,401,115 in the last three months. 9.33% of the stock is currently owned by insiders.

Institutional investors and hedge funds have recently made changes to their positions in the stock. Neuberger Berman Group LLC grew its holdings in shares of AAR Corp. by 27.4% in the first quarter. Neuberger Berman Group LLC now owns 23,129 shares of the aerospace company’s stock valued at $778,000 after purchasing an additional 4,971 shares during the period. Sei Investments Co. grew its holdings in shares of AAR Corp. by 1.7% in the first quarter. Sei Investments Co. now owns 93,995 shares of the aerospace company’s stock valued at $3,161,000 after purchasing an additional 1,608 shares during the period. Victory Capital Management Inc. grew its holdings in shares of AAR Corp. by 15.9% in the first quarter. Victory Capital Management Inc. now owns 3,623 shares of the aerospace company’s stock valued at $122,000 after purchasing an additional 496 shares during the period. Schwab Charles Investment Management Inc. grew its holdings in shares of AAR Corp. by 12.0% in the first quarter. Schwab Charles Investment Management Inc. now owns 294,279 shares of the aerospace company’s stock valued at $9,897,000 after purchasing an additional 31,549 shares during the period. Finally, Great West Life Assurance Co. Can grew its holdings in shares of AAR Corp. by 3.8% in the second quarter. Great West Life Assurance Co. Can now owns 45,716 shares of the aerospace company’s stock valued at $1,588,000 after purchasing an additional 1,656 shares during the period. 87.44% of the stock is owned by hedge funds and other institutional investors.

AAR Corp. Company Profile

AAR CORP. (AAR) is a provider of services and products to the commercial aviation and government and defense markets. The Company operates in two segments: Aviation Services, which consists of supply chain and maintenance, repair and overhaul (MRO) activities, and Expeditionary Services, which includes airlift and mobility activities.

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Analyst Recommendations for AAR Corp. (NYSE:AIR)

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