Anthony Carpenito, a director and significant shareholder at Loar Holdings Inc. (NASDAQ:LOAR), has sold a substantial portion of his holdings in the company. According to a recent SEC filing, Carpenito sold 987,248 shares of Loar Holdings' common stock at a price of $81.175 per share. The total value of the transaction amounts to approximately $80.14 million. The sale comes as LOAR trades near $79.86, having delivered an impressive 62% return year-to-date despite a recent 13% decline over the past week. According to InvestingPro, analysts maintain a positive outlook with price targets ranging from $89 to $105.
Following the sale, Carpenito retains ownership of 36,713,441 shares indirectly. The shares sold were distributed among several entities, including Abrams Capital Partners (WA:CPAP) II, L.P., Riva Capital Partners IV, L.P., Abrams Capital Partners I, L.P., Whitecrest Partners, LP, and Riva Capital Partners V, L.P., with varying amounts from each as detailed in the filing's footnotes.
The transaction was executed on December 12, 2024, and reflects Carpenito's continued involvement in the company's strategic maneuvers as a director and significant shareholder.
In other recent news, Loar Holdings Inc. has been making significant strides in its growth strategy. The company reported strong earnings and revenue results, with a 17% increase in organic growth, adjusted EBITDA of $35 million, and total sales reaching $97 million. Loar has also completed a strategic acquisition of Applied Avionics for $385 million, which is expected to increase annual revenues by approximately $40 million and adjusted EBITDA by around $20 million.
Following these developments, RBC Capital has maintained its Outperform rating for Loar Holdings, citing the company's strong market position, robust aerospace and defense industry fundamentals, and a potentially favorable environment for mergers and acquisitions. Other analyst firms such as Jefferies, Citi, and Morgan Stanley (NYSE:MS) have initiated coverage on Loar Holdings, expressing confidence in the company's potential for significant free cash flow in the coming years and its focus on proprietary products.
Loar Holdings also completed a successful equity offering, which resulted in approximately $310 million in net proceeds. This move is expected to reduce the company's debt and lead to lower interest expenses. Despite some delays in revenue projections due to the ongoing effects of the Boeing (NYSE:BA) strike, RBC Capital believes that Loar Holdings is in a strong position to benefit from a robust aerospace manufacturing outlook.
These recent developments highlight Loar Holdings' strategic positioning and financial performance. However, these projections are based on analyst expectations, and actual results may vary.
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