Exploring AAR Corp. (AIR) Investor Profile: Who’s Buying and Why?

Have you ever wondered who the major players are behind AAR Corp (AIR), and what's driving their investment decisions? As of December 31, 2024, institutional investors held a significant 96.60% ownership stake in the company. Giants like BlackRock, Inc. held 5,993,518 shares, while Vanguard Group Inc. had 3,840,885 shares. But it's not just about who holds the most; it's also about who's actively changing their positions. For instance, Invesco Ltd. increased its holdings by 127,148 shares, and Westwood Holdings Group Inc. added 115,476 shares, while Franklin Resources Inc. reduced their stake by 68,396 shares. With AAR Corp's revenue at $2.32 billion in 2024 and analysts predicting a potential 52.64% upside, understanding these investment moves can provide valuable insights into the company's future trajectory.

AAR Corp. (AIR) Who Invests in AAR Corp. (AIR) and Why?

Understanding the investor profile of AAR Corp. (AIR) involves examining the various types of investors, their motivations, and the strategies they employ. This provides insights into the market's perception of the company and its future prospects. A diverse investor base can contribute to stock stability and liquidity.

Key Investor Types:

AAR Corp.'s (AIR) investor base can be broadly categorized into retail investors, institutional investors, and hedge funds. Each group has different investment horizons, risk tolerances, and expectations.

• Retail Investors: These are individual investors who buy and sell shares for their own accounts. Their investment decisions are often influenced by factors such as company news, market trends, and personal financial goals.
• Institutional Investors: This category includes mutual funds, pension funds, insurance companies, and investment banks. These entities manage large sums of money on behalf of others and typically have a longer-term investment horizon.
• Hedge Funds: These are investment partnerships that use more aggressive strategies, such as leverage and short-selling, to generate higher returns. Their investment horizon can range from short-term to long-term, depending on the fund's strategy.

Investment Motivations:

Investors are attracted to AAR Corp. (AIR) for a variety of reasons, often linked to the company's financial health, growth prospects, and strategic positioning. The following factors may influence investment decisions:

• Growth Prospects: Investors may be drawn to AAR Corp. (AIR)'s potential for growth in the aviation services market. This includes expansion of services, entry into new markets, and increased demand from existing customers.
• Dividends: While AAR Corp. (AIR)'s dividend yield may not be the primary driver for all investors, it can be an attractive factor for those seeking steady income.
• Market Position: AAR Corp. (AIR)'s established position in the aviation services industry, its long-standing relationships with key customers, and its reputation for quality and reliability can instill confidence in investors.

Investment Strategies:

The strategies employed by investors in AAR Corp. (AIR) stock vary depending on their investment goals and risk tolerance. Some common strategies include:

• Long-Term Holding: Many institutional investors adopt a long-term holding strategy, based on their belief in the company's sustained growth and profitability.
• Short-Term Trading: Hedge funds and some retail investors may engage in short-term trading, seeking to profit from short-term price fluctuations.
• Value Investing: Value investors may be attracted to AAR Corp. (AIR) if they believe the stock is undervalued by the market, based on metrics such as price-to-earnings ratio, price-to-book ratio, and dividend yield.

Understanding the breakdown of investor types, their motivations, and typical investment strategies provides a comprehensive view of who is investing in AAR Corp. (AIR) and why. This insight is valuable for both current and potential investors, as well as for the company itself.

To gain more insight into the company's goals, see Mission Statement, Vision, & Core Values of AAR Corp. (AIR).

AAR Corp. (AIR) Institutional Ownership and Major Shareholders of AAR Corp. (AIR)

Institutional investors and major shareholders can significantly influence a company's stock price and strategic direction. Examining the ownership structure of AAR Corp. (AIR) provides insights into who is investing in the company and why.

Here's an overview of AAR Corp.'s institutional ownership and major shareholders:

• Top Institutional Investors: Identifying the largest institutional investors and their respective shareholdings in AAR Corp. (AIR).
• Changes in Ownership: Analyzing whether institutional investors have increased or decreased their stakes in AAR Corp. (AIR) recently.
• Impact of Institutional Investors: Understanding the role these large investors play in AAR Corp.'s (AIR) stock price and overall strategy.

As of December 31, 2024, the top institutional holders of AAR Corp. (AIR) include:

• BlackRock Fund Advisors: Holding approximately 1,517,418 shares, representing about 4.23% ownership.
• Vanguard Total Stock Market Index Fund: Holding approximately 1,348,339 shares, representing about 3.76% ownership.
• Vanguard Small-Cap Index Fund: Holding approximately 1,093,267 shares, representing about 3.05% ownership.
• Dimensional Fund Advisors LP: Holding approximately 1,019,118 shares, representing about 2.84% ownership.
• Geode Capital Management LLC: Holding approximately 678,495 shares, representing about 1.89% ownership.

Reviewing recent ownership changes can indicate investor sentiment and potential future stock performance. For instance, significant increases in institutional holdings may suggest confidence in the company's prospects, while decreases could signal concerns.

Institutional investors often engage with company management to influence corporate strategy and governance. Their substantial holdings can give them considerable sway over key decisions, potentially impacting AAR Corp.'s (AIR) direction and stock valuation.

The data regarding AAR Corp.'s (AIR) history, ownership, mission, and operational strategies can be found at: AAR Corp. (AIR): History, Ownership, Mission, How It Works & Makes Money

Below is a detailed table presenting the major shareholders and their holdings in AAR Corp. (AIR) as of the end of 2024:

Understanding the composition and changes within AAR Corp.'s (AIR) shareholder base is crucial for investors seeking to gauge market sentiment and potential shifts in company strategy.

AAR Corp. (AIR) Key Investors and Their Impact on AAR Corp. (AIR)

Understanding the investor profile of AAR Corp. (AIR) provides valuable insights into the company's stability, growth potential, and market sentiment. Key investors can significantly influence company decisions and stock performance through their holdings and strategic moves.

Identifying notable investors in AAR Corp. (AIR) involves examining major institutional holders, any activist investors, and significant individual shareholders. These entities often hold large stakes, giving them considerable influence over company policy and strategic direction.

Here are some of the top institutional holders of AAR Corp. (AIR), based on recent data:

• Vanguard Group Inc: As of March 31, 2024, Vanguard holds 3,998,906 shares, representing 11.37% ownership.
• BlackRock Fund Advisors: BlackRock holds 3,415,543 shares, accounting for 9.718% ownership as of March 31, 2024.
• Dimensional Fund Advisors LP: Dimensional Fund Advisors owns 2,364,548 shares, which is 6.729% of the company, as of March 31, 2024.
• баавтар Capital Management LLC: баавтар Capital Management holds 2,186,779 shares, representing 6.225% ownership. The filing date is March 31, 2024.
• State Street Global Advisors, Inc.: State Street Global Advisors holds 1,546,583 shares, accounting for 4.398% ownership as of December 31, 2023.

The influence of these investors on AAR Corp. (AIR) can be seen in several ways:

• Voting Power: Large institutional holders have significant voting power, allowing them to influence board elections and key corporate decisions.
• Market Sentiment: Their investment decisions can impact market sentiment, driving stock price movements.
• Engagement with Management: These investors often engage with company management to discuss strategy, performance, and governance issues.

Recent moves by these investors, such as buying or selling large stakes, can provide insights into their confidence in the company's future prospects. For example, significant increases in holdings may indicate a bullish outlook, while large sales could signal concerns.

Here is a summary of recent transaction activities by key AAR Corp. (AIR) investors:

Understanding these ownership dynamics is crucial for anyone looking to invest in AAR Corp. (AIR) or seeking to understand the company's strategic direction. For further insights into the company's values and goals, refer to Mission Statement, Vision, & Core Values of AAR Corp. (AIR).

Analyzing investor profiles, their influence, and recent activities provides a comprehensive view of the factors driving AAR Corp.'s market behavior and strategic decisions.

AAR Corp. (AIR) Market Impact and Investor Sentiment

Understanding the investor profile and market sentiment surrounding AAR Corp. (AIR) is crucial for assessing the company's current standing and future prospects. This involves analyzing the composition of major shareholders, recent market reactions to ownership changes, and perspectives from analysts.

AAR Corp. operates in the aerospace and defense (A&D) aftermarket, offering diverse services and products. Recent performance shows strong growth across its business segments. In the second quarter of fiscal year 2025, AAR Corp reported organic growth accelerating from 6% to 12% sequentially. Adjusted EBITDA for the quarter reached $78 million, surpassing analyst expectations of $74 million. Revenues climbed to $686 million, a 26% year-over-year increase, exceeding forecasts of $654 million. Data shows revenue growth of 21.07% over the last twelve months, reaching $2.68 billion. The Parts Supply segment, accounting for approximately 40% of sales, grew by 20% organically year-over-year.

Here's a look at AAR Corp.'s key aspects:

• Major Shareholders: Institutional investors hold a significant portion of AAR Corp.'s stock. Top shareholders include BlackRock, Inc. with 15.98%, Vanguard Fiduciary Trust Co. with 10.69%, and Dimensional Fund Advisors LP with 6.448%. David P. Storch is the largest individual shareholder, owning 3.72% of the company.
• Institutional Ownership: Approximately 96.07% of AAR Corp. is owned by institutional shareholders.
• Insider Ownership: About 10.19% of AAR Corp. is owned by insiders.
• Retail Ownership: Retail investors hold a smaller portion, accounting for approximately 0.00% of AAR Corp.'s stock.

Recent trading activity by AAR Corp. insiders reveals a trend of selling shares. Over the past six months, there have been 0 purchases and 16 sales by insiders. Notable sales include those by JOHN MCCLAIN III HOLMES (Chairman, President & CEO), who sold 133,427 shares for an estimated $8,927,723, and CHRISTOPHER A. JESSUP (Senior Vice President-CCO), who sold 33,981 shares for an estimated $2,392,200.

Recent market reactions to AAR Corp. (AIR) have been mixed. In March 2025, the stock experienced a 1.97% decline during regular trading hours, closing at $68.5, but showed a slight recovery in aftermarket trading, rising by 0.22%. The stock's beta of 1.59 indicates higher volatility compared to the broader market, and its P/E ratio of 236.61 suggests premium pricing. By March 31, 2025, AAR Corp's stock touched a 52-week low at $54.66 amidst market shifts, with a 7.66% decline over the past year.

Despite a revenue miss in the third quarter of fiscal year 2025, where the company reported $678 million against an expected $698.97 million, earnings per share (EPS) slightly exceeded estimates at $0.99 versus $0.98. The company's adjusted EBITDA rose by 39% to $81.2 million, demonstrating effective cost management and strategic growth initiatives. Analysts anticipate significant margin expansion for AAR Corp in fiscal year 2026, with revenue growth projected to $3 billion by 2027.

Analyst ratings on AAR Corp. (AIR) are generally positive. Truist Financial has issued a Buy rating with a target price of $81. Benchmark Research reiterated its Buy rating, revising the target price from $83 to $83. RBC Capital Markets reiterated its Outperform rating, maintaining the target price at $85. However, several analysts have tempered expectations by lowering price targets, reflecting concerns about organic growth and market challenges.

Here's a summary of recent analyst ratings:

• Truist Securities: Adjusted price target to $78, maintained Buy rating.
• RBC Capital Markets: Maintained Outperform rating with a $75 price target.
• Benchmark Analysts: Reiterated Buy rating with an $83 price target.

Overall, investor sentiment toward AAR Corp. reflects cautious optimism. While the company faces challenges such as tariff impacts and revenue shortfalls, analysts remain confident in its ability to navigate these issues through operational efficiencies and strategic partnerships. The company's focus on cost management, technology investments, and market expansion positions it well for future growth.

To gain further insights into AAR Corp.'s background, explore this resource: AAR Corp. (AIR): History, Ownership, Mission, How It Works & Makes Money