Air Lease (NYSE:AL) Downgraded by Zacks Investment Research to “Sell”

Air Lease (NYSE:AL) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued to investors on Friday, Zacks.com reports. They currently have a $43.00 target price on the transportation company’s stock. Zacks Investment Research‘s target price indicates a potential upside of 9.11% from the stock’s current price.

According to Zacks, “Shares of Air Lease have outperformed its industry on a year-to-date basis. Demand for the company's aircraft remains strong with passenger traffic rising. The robust aircraft repalcement market is another positive as Air Lease primarily focuses on this business. We are also impressed by the company's efforts to upgrade its fleet. The company's efforts to reward its shareholders are also commendable. Its strong cash flow is anticipated to support such shareholder-friendly measures going forward. However, the company's high operating expenses are concerning. Delivery delays from Airbus and Boeing are added concerns. We expect high costs to hurt its second-quarter 2019 results, scheduled to be revealed on Aug 8. Due to the delays Air Lease lowered its 2019 estimate for aircraft investments to $5.8 billion from $6.5 billion.”

Other analysts have also issued reports about the stock. ValuEngine lowered shares of Air Lease from a “hold” rating to a “sell” rating in a research note on Thursday. Goldman Sachs Group started coverage on shares of Air Lease in a research note on Monday, April 8th. They set a “buy” rating and a $52.00 target price for the company. Two equities research analysts have rated the stock with a sell rating, two have issued a hold rating, six have given a buy rating and one has given a strong buy rating to the company. The company has an average rating of “Buy” and an average target price of $55.78.

Shares of AL traded down $1.12 during trading hours on Friday, reaching $39.41. 27,580 shares of the company traded hands, compared to its average volume of 728,015. The stock has a market capitalization of $4.50 billion, a price-to-earnings ratio of 8.57, a price-to-earnings-growth ratio of 1.22 and a beta of 1.97. Air Lease has a 12-month low of $28.13 and a 12-month high of $47.34. The company has a current ratio of 0.81, a quick ratio of 0.81 and a debt-to-equity ratio of 2.29. The stock has a fifty day moving average of $40.94.

Air Lease (NYSE:AL) last issued its earnings results on Thursday, May 9th. The transportation company reported $1.23 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $1.22 by $0.01. The firm had revenue of $466.00 million during the quarter, compared to analyst estimates of $456.91 million. Air Lease had a net margin of 30.50% and a return on equity of 11.45%. The business’s revenue was up 22.2% on a year-over-year basis. During the same period in the previous year, the firm earned $1.38 earnings per share. On average, equities analysts expect that Air Lease will post 5.39 earnings per share for the current year.

In related news, CEO John L. Plueger sold 395,806 shares of the company’s stock in a transaction dated Friday, May 17th. The shares were sold at an average price of $38.16, for a total value of $15,103,956.96. Following the completion of the sale, the chief executive officer now directly owns 914,145 shares of the company’s stock, valued at $34,883,773.20. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Marc H. Baer sold 130,000 shares of the company’s stock in a transaction dated Friday, May 24th. The stock was sold at an average price of $36.80, for a total transaction of $4,784,000.00. Following the completion of the sale, the executive vice president now directly owns 275,008 shares of the company’s stock, valued at $10,120,294.40. The disclosure for this sale can be found here. Over the last ninety days, insiders sold 576,477 shares of company stock valued at $21,843,351. 8.76% of the stock is owned by insiders.

Large investors have recently added to or reduced their stakes in the stock. Two Sigma Advisers LP raised its holdings in Air Lease by 3.6% in the fourth quarter. Two Sigma Advisers LP now owns 7,600 shares of the transportation company’s stock worth $230,000 after purchasing an additional 267 shares in the last quarter. ETF Managers Group LLC raised its holdings in Air Lease by 10.3% in the first quarter. ETF Managers Group LLC now owns 3,376 shares of the transportation company’s stock worth $116,000 after purchasing an additional 316 shares in the last quarter. Amalgamated Bank raised its holdings in Air Lease by 2.6% in the fourth quarter. Amalgamated Bank now owns 18,355 shares of the transportation company’s stock worth $555,000 after purchasing an additional 458 shares in the last quarter. SeaBridge Investment Advisors LLC raised its holdings in Air Lease by 50.0% in the second quarter. SeaBridge Investment Advisors LLC now owns 1,500 shares of the transportation company’s stock worth $62,000 after purchasing an additional 500 shares in the last quarter. Finally, Zurcher Kantonalbank Zurich Cantonalbank raised its holdings in Air Lease by 8.7% in the second quarter. Zurcher Kantonalbank Zurich Cantonalbank now owns 7,093 shares of the transportation company’s stock worth $293,000 after purchasing an additional 569 shares in the last quarter. 85.46% of the stock is owned by institutional investors.

Air Lease Company Profile

Air Lease Corporation, an aircraft leasing company, engages in the purchase and leasing of commercial jet transport aircraft to airlines worldwide. The company also sells aircraft from its operating lease portfolio to third parties, including other leasing companies, financial services companies, and airlines.

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