Senior VP-CFO Sean Gillen Sells 15,000 Shares of AAR Corp
On October 10, 2023, Sean Gillen, the Senior Vice President and Chief Financial Officer of AAR Corp (NYSE:AIR), sold 15,000 shares of the company. This move is part of a larger trend of insider selling at AAR Corp, with Gillen himself having sold a total of 41,250 shares over the past year.
Sean Gillen has been with AAR Corp since January 2019, bringing with him a wealth of experience in the financial sector. Prior to joining AAR, he served as Vice President and Treasurer of USG Corporation, a leading manufacturer of building materials. At AAR, Gillen is responsible for all financial aspects of the company, including financial planning and analysis, accounting and financial reporting, and managing tax and treasury.
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 has raised some eyebrows, especially considering the lack of insider buying at AAR Corp over the past year. The insider transaction history for AAR Corp shows zero insider buys and 29 insider sells over the past year.
On the day of the insider's recent sell, shares of AAR Corp were trading for $60.44 apiece, giving the stock a market cap of $2.18 billion. The price-earnings ratio is 32.44, which is higher than both the industry median of 32.29 and the companys historical median price-earnings ratio.
According to the GuruFocus Value, which is an intrinsic value estimate based on historical multiples, a GuruFocus adjustment factor, and future estimates of business performance, AAR Corp is modestly overvalued. With a price of $60.44 and a GuruFocus Value of $52.71, AAR Corp has a price-to-GF-Value ratio of 1.15.
The insider's sell, coupled with the lack of insider buying and the stock's overvaluation, could be a signal for investors to exercise caution. However, it's important to note that insider selling does not necessarily indicate a lack of confidence in the company. Insiders may sell shares for a variety of reasons, including personal financial planning or portfolio diversification. As always, investors should conduct their own thorough research before making any investment decisions.
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.
