AAR Stock Up 43% in One Year as Insider Sells 23,621 Shares After Option Exercise

Core Insights - AAR Corp. has demonstrated strong performance with a one-year total return of 43.28%, and the recent share sale by a senior vice president occurred at a weighted average price of $97.05 per share, slightly above the market close of $97.03 [1][4][7] Company Overview - AAR Corp. provides a range of aviation aftermarket support services, including inventory management, maintenance, repair, overhaul, and engineering services, primarily targeting defense and government markets [1][5] - The company operates within the global aerospace and defense sector, leveraging its expertise to support both commercial and government fleets, which contributes to stable, recurring revenue streams from long-term contracts [5] Transaction Details - The recent transaction involved the direct sale of 23,621 shares by senior vice president Christopher Jessup, which represented 26.42% of his direct common stock holdings [2][4] - This sale was executed following the exercise of 14,652 options for common stock, indicating that the primary intent was liquidity from option conversion rather than a discretionary reduction of equity exposure [3][6] Financial Performance - In the most recent quarter, AAR Corp. reported revenue of $795 million, reflecting a 16% year-over-year increase, with adjusted diluted EPS of $1.18 and adjusted EBITDA growth of 23% [7] - Margin expansion was attributed to the Parts Supply and Repair & Engineering segments, while recent acquisitions have provided long-term visibility through contracted demand [7] Market Context - The share sale is viewed as routine and option-driven, occurring against a backdrop of improving fundamentals, expanding margins, and durable demand in the aviation sector [8]