Director Peter Pace Sells 5,561 Shares of AAR Corp
On October 12, 2023, Peter Pace, a director at AAR Corp (NYSE:AIR), sold 5,561 shares of the company. This move is part of a larger trend for the insider, who has sold a total of 15,561 shares over the past year and made no purchases.
AAR Corp is a global aerospace and defense company that provides products and services to commercial aviation and government and defense industries worldwide. The company operates in two segments, Aviation Services and Expeditionary Services. The Aviation Services segment offers aftermarket support and services; inventory management and distribution services; and maintenance, repair, and overhaul, as well as engineering services. The Expeditionary Services segment provides products and services supporting the movement of equipment and personnel by the U.S. and foreign governments and non-governmental organizations.
The insider's recent sell comes at a time when the stock is trading at $59.09 per share, giving the company a market cap of $2.08 billion. The price-earnings ratio stands at 31.01, which is lower than the industry median of 32.43 but higher than the companys historical median price-earnings ratio.
The insider transaction history for AAR Corp shows a clear trend of more sells than buys. Over the past year, there have been 31 insider sells and no insider buys. This could indicate that insiders believe the stock is currently overvalued, prompting them to sell their shares.
The GuruFocus Value of AAR Corp is currently $52.72, which means the stock is modestly overvalued with a price-to-GF-Value ratio of 1.12. The GF Value is an intrinsic value estimate developed by GuruFocus, calculated based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance from Morningstar analysts.
The insider's decision to sell shares could be influenced by this valuation. However, it's important to note that insider selling does not necessarily indicate a negative outlook for the company. Insiders may sell shares for personal reasons or to diversify their investment portfolio. Therefore, while the insider's recent sell is noteworthy, it should be considered as part of a broader investment analysis.
Investors should continue to monitor insider transactions at AAR Corp, as well as other key indicators such as earnings, revenue growth, and the company's competitive position within the aerospace and defense industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
