Traders Buy Large Volume of Call Options on AAR (NYSE:AIR)

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AAR Corp. (NYSE:AIR) was the recipient of unusually large options trading on Tuesday. Stock traders bought 3,053 call options on the company. This is an increase of 6,839% compared to the typical daily volume of 44 call options.

Separately, Royal Bank of Canada began coverage on AAR in a research note on Thursday, October 21st. They issued an “outperform” rating and a $45.00 target price on the stock.

AAR stock opened at $38.05 on Thursday. The company has a debt-to-equity ratio of 0.13, a current ratio of 2.91 and a quick ratio of 1.29. AAR has a one year low of $30.90 and a one year high of $45.49. The stock has a market capitalization of $1.35 billion, a PE ratio of 21.99 and a beta of 1.76. The business’s fifty day moving average is $35.73 and its 200 day moving average is $35.55.

AAR (NYSE:AIR) last released its quarterly earnings results on Tuesday, December 21st. The aerospace company reported $0.53 earnings per share for the quarter, missing the consensus estimate of $0.54 by ($0.01). The firm had revenue of $436.60 million for the quarter, compared to analysts’ expectations of $454.48 million. AAR had a net margin of 3.62% and a return on equity of 6.24%. The business’s quarterly revenue was up 8.2% compared to the same quarter last year. During the same quarter in the prior year, the business earned $0.31 EPS. As a group, sell-side analysts expect that AAR will post 2.58 EPS for the current fiscal year.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in AIR. Healthcare of Ontario Pension Plan Trust Fund purchased a new position in shares of AAR in the 2nd quarter worth approximately $4,681,000. AQR Capital Management LLC purchased a new position in shares of AAR in the 2nd quarter worth approximately $1,043,000. Segall Bryant & Hamill LLC boosted its holdings in shares of AAR by 0.3% in the 2nd quarter. Segall Bryant & Hamill LLC now owns 826,781 shares of the aerospace company’s stock worth $32,037,000 after purchasing an additional 2,442 shares during the period. US Bancorp DE boosted its holdings in shares of AAR by 57.6% in the 2nd quarter. US Bancorp DE now owns 18,917 shares of the aerospace company’s stock worth $733,000 after purchasing an additional 6,914 shares during the period. Finally, Sei Investments Co. boosted its holdings in shares of AAR by 15.4% in the 2nd quarter. Sei Investments Co. now owns 13,500 shares of the aerospace company’s stock worth $523,000 after purchasing an additional 1,800 shares during the period. Institutional investors and hedge funds own 90.22% of the company’s stock.

AAR Company Profile

AAR Corp. engages in the provision of products and services to commercial aviation and government and defense industries. It operates through the following segments: Aviation Services and Expeditionary Services. The Aviation Services segment consists of aftermarket support and services businesses that provide spares and maintenance support for aircraft operated by commercial and government/defense customers.

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