Holmes John McClain III, the Chairman, President & CEO of AAR Corp (NYSE:AIR), sold 72,637 shares of the company on Monday. This recent sale is part of a larger trend for McClain who, over the past year, has sold a total of 320,560 shares and has not purchased any.
This significant insider sell has sparked interest in the investment community. Over the past year, there have been no insider buys at AAR Corp while there have been 25 insider sells. On Monday, shares of AAR Corp were trading for $60.32 apiece, giving the stock a market cap of $2.055 billion. The price-earnings ratio was 30.65, lower than the industry median of 32.84 but higher than the company’s historical median price-earnings ratio.
According to InvestingPro data, AAR Corp has a market cap of $2020 million and a P/E ratio of 30.51. The company has seen a revenue growth of 15.61% LTM2024.Q1 and a gross profit of $389.5 million. The stock has also returned 57.8% over the past year, which is a significant return for investors.
According to an intrinsic value estimate developed by GuruFocus Value, AAR Corp appears modestly overvalued. The stock’s price-to-GF-Value ratio is 1.15, with a GF Value of $52.42 and a current price of $60.32. The GF Value is calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
AAR Corp, a global aftermarket solutions company with operations in over 100 countries, provides aviation services to commercial and government customers worldwide. These services include maintenance, repair, and overhaul (MRO) as well as supply chain solutions. McClain has been with AAR Corp for several years, navigating the company through various market conditions.
The recent insider sell by McClain coupled with the stock’s modest overvaluation may suggest that he believes the stock’s current price does not reflect its intrinsic value. As per InvestingPro Tips, AAR Corp is trading at a high earnings multiple and its stock price movements are quite volatile. The company’s revenue growth has been accelerating and it operates with a moderate level of debt.
