On June 22, 2023, Meyer Handelman Co. revealed that it had reduced its stake in AAR Corp. (NYSE:AIR) by 33.3% during the first quarter of the current year. The move had come shortly after AAR’s impressive quarterly earnings report on March 21st, which saw the aerospace company exceed analysts’ consensus estimates with an earnings per share of $0.75 for the quarter.
AAR has established itself as a global leader in providing products and services to commercial aviation, government, and defense markets worldwide. The Aviation Services segment offers crucial aftermarket support and services that keep aircraft in the sky by providing inventory management and distribution services; maintenance, repair, and overhaul; as well as engineering services.
Furthermore, AAR’s performance-based supply chain logistics programs have supported the U.S.’ Department of Defense, enabling efficient movement of spare parts and components to where they are needed most. It’s not surprising that Wall Street analysts project that AAR will post an EPS of 2.85 for the current year since this company’s mission-critical services have been vital for ensuring smooth aircraft operations across many industries.
Although Meyer Handelman Co.’s decision to reduce its stake in AAR Corp.’s stocks may raise eyebrows among some investors, it is still essential to note that their holdings were worth $491,000 at the end of Q1 – highlighting how big that figure could have grown over time if there weren’t any significant share dumpings.
In conclusion, despite Meyer Handelman Co.’s selling activities concerning AAR Corp., there is no doubt about the role this aerospace entity plays within the aviation industry – from providing aftermarket support to managing logistics programs for major government customers like the US DoD – and how it seems poised for long-term success in years ahead based on its promising guidance forecasts.
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Institutional Investors Increase Holdings in AAR Corp, While Analysts Offer Favorable Ratings
[stock_market_widget type=”chart” template=”basic” color=”#3946CE” assets=”AIR” range=”1mo” interval=”1d” axes=”true” cursor=”true” range_selector=”true” api=”yf”]AAR Corp, a leader in the aviation industry, has recently been making headline news as several large investors make changes to their positions in the company. Bank of New York Mellon Corp was one of these investors, lifting its holdings by 4.9% in the first quarter and acquiring an additional 19,617 shares during this time. Bank of Montreal Can also increased its position in AAR Corp by 8%, and MetLife Investment Management LLC saw an even larger increase of 56.7%, owning over $883,000 worth of stock after purchasing an additional 6,595 shares in the first quarter.
Rhumbline Advisers also raised its position by nearly 5%, while Commonwealth of Pennsylvania Public School Empls Retrmt SYS increased its position by over 14%. Currently, institutional investors and hedge funds own 95.28% of the company’s stock.
AAR Corp provides products and services to commercial aviation, government, and defense markets across the globe. Its Aviation Services segment offers aftermarket support and services; inventory management and distribution services; maintenance, repair, and overhaul; engineering services; selling new, overhauled and repaired engine/airframe parts and components; providing inventory/repair programs for various aircraft parts/components; warranty claim management; outsourcing programs for engine/airframe parts/components along with performance-based supply chain logistics programs in support of the U.S.
In other news pertaining to AAR Corp., CEO John Mcclain Holmes III sold approximately $3.7 million worth of shares while CAO Eric Pachapa sold around $710k worth at an average price of $54.74 per share earlier this year.
Recently analysts have increased their target price on shares from $55 to around $58-$60 range with favorable ratings such as buy or outperform given to AAR Corp.’s stock.
Despite some insider selling activity within the company this year from key executives such as CEO John Mcclain Holmes III and CAO Eric Pachapa, the company continues to be a strong contender in the aviation industry. With several large investors changing or increasing their positions in the company during Q1 2023 and positive reports from several analysts, AAR Corp may be worth considering as a potential investment option for those interested in the aviation industry.
