AAR (NYSE:AIR) Stock Bumped Down to Hold by Zacks Research

AAR (NYSE:AIR) was downgraded by Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued on Monday, Zacks reports.

Other research analysts have also issued research reports about the company. Weiss Ratings lowered AAR from a “buy (b)” rating to a “buy (b-)” rating in a research report on Friday. KeyCorp restated a “sector weight” rating on shares of AAR in a research note on Wednesday, July 22nd. Wall Street Zen downgraded shares of AAR from a “buy” rating to a “hold” rating in a report on Saturday, August 1st. Jefferies Financial Group boosted their target price on shares of AAR from $155.00 to $160.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Guggenheim restated a “neutral” rating on shares of AAR in a research report on Tuesday. Four analysts have rated the stock with a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $140.60.

AAR Price Performance

Shares of AIR stock opened at $107.45 on Monday. The firm has a fifty day moving average of $131.46 and a two-hundred day moving average of $123.84. The firm has a market cap of $4.29 billion, a P/E ratio of 22.02 and a beta of 1.11. AAR has a 1-year low of $76.10 and a 1-year high of $154.00. The company has a debt-to-equity ratio of 0.52, a current ratio of 2.84 and a quick ratio of 1.24.

AAR (NYSE:AIR) last issued its earnings results on Monday, September 28th. The aerospace company reported $1.49 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.30 by $0.19. AAR had a net margin of 5.55% and a return on equity of 13.20%. The business had revenue of $918.00 million for the quarter, compared to analyst estimates of $878.81 million. As a group, research analysts anticipate that AAR will post 5.92 earnings per share for the current fiscal year.

Institutional Trading of AAR

Hedge funds have recently made changes to their positions in the stock. BlackRock Inc. bought a new position in AAR during the 2nd quarter worth $925,068,000. Barrow Hanley Mewhinney & Strauss LLC bought a new stake in AAR in the second quarter valued at $84,251,000. Geode Capital Management LLC boosted its holdings in shares of AAR by 9.4% during the fourth quarter. Geode Capital Management LLC now owns 920,743 shares of the aerospace company’s stock valued at $76,239,000 after acquiring an additional 78,810 shares during the period. Principal Financial Group Inc. boosted its holdings in shares of AAR by 4.9% during the first quarter. Principal Financial Group Inc. now owns 675,686 shares of the aerospace company’s stock valued at $73,961,000 after acquiring an additional 31,583 shares during the period. Finally, Emerald Advisers LLC grew its position in shares of AAR by 6.3% during the first quarter. Emerald Advisers LLC now owns 445,693 shares of the aerospace company’s stock worth $48,786,000 after acquiring an additional 26,223 shares during the last quarter. Institutional investors own 90.74% of the company’s stock.

AAR News Summary

Here are the key news stories impacting AAR this week:

• Positive Sentiment: AAR reported fiscal Q1 2027 revenue of $918 million, up 24% year over year, while adjusted diluted EPS of $1.49 exceeded analyst expectations of $1.30. Commercial sales rose 28%, government sales increased 14%, and operating cash flow improved to $55.8 million. AAR reports first quarter fiscal year 2027 results
• Positive Sentiment: The company raised its growth outlook, issuing second-quarter revenue guidance of approximately $906.6 million to $922.5 million, above the roughly $893.5 million consensus estimate. AAR fiscal 2027 guidance
• Positive Sentiment: Jefferies raised its price target for AAR to $160, while RBC maintained an Outperform rating with a $145 target, reflecting continued analyst confidence in the company’s operating momentum. Jefferies raises AAR price target
• Neutral Sentiment: AAR agreed to acquire a 65% controlling stake in MRO Holdings for an implied enterprise value of about $4 billion, adding more than $1 billion in revenue and potentially increasing adjusted EBITDA margins from roughly 12% to 16% before synergies. Management expects the deal to be adjusted-EPS accretive in the first full fiscal year after closing and is targeting 19%–20% adjusted EBITDA margins within three to four years. AAR MRO Holdings acquisition
• Negative Sentiment: Investors appear concerned that the MRO transaction will require substantial new debt and equity, including about $780 million of stock issued to current MRO owners and a roughly $230 million PIPE. Net leverage is expected to rise to approximately 3.6 times at closing, creating dilution, integration and balance-sheet risk despite the deal’s strategic benefits. Why AAR stock is down

About AAR

AAR Corp. is a global provider of aviation services supporting commercial aviation, government and defense customers. The company supplies aircraft parts and equipment, manages inventory and logistics, and provides maintenance, repair and overhaul services for aircraft and components.

AAR’s offerings include parts distribution, supply-chain management, aircraft maintenance, airframe and component repair, and mobility solutions for government and defense operators. Its services are designed to help airlines, aircraft operators and government agencies maintain fleet readiness and manage aviation assets.

Founded in 1955, AAR is headquartered in Wood Dale, Illinois, and serves customers across North America, Europe, Asia and other international markets.