AAR Corp senior VP sells $2.39 million in stock

Christopher A. Jessup, Senior Vice President and Chief Commercial Officer at AAR Corp (NYSE:AIR), made significant transactions involving the company's stock on January 15 and 16, 2025. Jessup sold a total of 33,981 shares, generating approximately $2.39 million. The sales were executed at prices ranging from $70.185 to $70.416 per share, close to the current trading price of $70.83. According to InvestingPro data, analyst price targets for AIR range from $75 to $85, suggesting potential upside.

In addition to the sales, Jessup acquired 26,893 shares through stock option exercises at a price of $18.94 per share, equivalent to a total value of $509,353. Following these transactions, Jessup's direct ownership stands at 63,208.525 shares. InvestingPro analysis shows AAR Corp maintains strong liquidity with a current ratio of 2.68, while trading at a notably high P/E ratio of 241. Get access to 7 more key insights and comprehensive analysis with an InvestingPro subscription.

In other recent news, AAR Corp has been making notable strides in the aviation and defense industry. KeyBanc Capital Markets initiated coverage on AAR Corporation, assigning an Overweight rating with a price target of $83.00, citing the industry's multiyear up-cycle as a favorable environment for the company. The firm's analysts expect AAR to benefit from increased demand for aftermarket parts as older aircraft are reintroduced into service.

AAR Corp's revenue growth of 18.5% in the past twelve months, coupled with a healthy current ratio of 2.68x, indicates strong operational efficiency. The company's recent mergers and acquisitions, including the acquisition of Triumph Group (NYSE:TGI), have expanded AAR's growth and scaling capabilities. Despite a leverage ratio higher than its historical averages, KeyBanc predicts that AAR's free cash flow generation will normalize leverage levels in the next 12 to 18 months.

In personnel changes, AAR Corp announced the departure of Senior Vice President and Chief Human Resources Officer, Tracey Patterson, who will be pursuing a new professional opportunity outside of the aviation industry. In its fiscal second quarter, AAR Corp outperformed analyst expectations, reporting adjusted earnings per share of $0.90 and a 26% year-over-year revenue increase to $686.1 million. The company also experienced significant organic growth in the quarter, with the Parts Supply segment and Repair & Engineering revenue increasing by 20% and 57% respectively, compared to the previous year.

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