AAR Corp CEO Sells Shares Amid Insider Selling Trend

Holmes John McClain III, the Chairman, President, and CEO of AAR Corp (NYSE:), sold 72,637 shares of the company on Monday. This transaction is part of a broader trend for McClain, who has sold a total of 320,560 shares over the past year without making any purchases.

The significant insider selling has captured the attention of the investment community. In the past year, AAR Corp has seen 25 insider sales but no insider purchases. On Monday, the company’s shares were trading at $60.32, which gives AAR Corp a market capitalization of approximately $2.055 billion. The price-to-earnings (P/E) ratio stood at 30.65, which is lower than the industry median of 32.84 yet higher than the company’s historical average.

Data from InvestingPro reveals that AAR Corp has a market cap of $2,020 million with a P/E ratio of 30.51. The company has achieved a revenue growth rate of 15.61% for the last twelve months through the first quarter of 2024, along with a gross profit of $389.5 million. Additionally, the stock has returned 57.8% over the past year, marking a strong performance for investors.

As per an intrinsic value estimate from GuruFocus, AAR Corp appears to be modestly overvalued. The stock’s price-to-GF-Value ratio is 1.15, with a GF Value of $52.42 compared to its current price of $60.32. The GF Value is derived from historical multiples, an adjustment factor from GuruFocus, and future business performance estimates provided by Morningstar analysts.

AAR Corp is a global aftermarket solutions provider with operations in over 100 countries, offering aviation services to both commercial and government clients, including maintenance, repair, and overhaul (MRO) services as well as supply chain solutions. McClain has been a key figure at AAR Corp for several years, guiding the company through various market conditions.

The insider sale by McClain, along with the stock’s modest overvaluation, may indicate that he perceives the current stock price as not reflecting its intrinsic value. Insights suggest that AAR Corp is trading at a high earnings multiple, and its stock is experiencing significant price volatility. The company has shown accelerating revenue growth and operates with a moderate debt load.

This article was created with the aid of AI and reviewed by an editor.