AAON Inc. (NASDAQ: AAON) stock fell -0.47% on Thursday to $60.94 against a previous-day closing price of $61.23. With 0.57 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.43 million shares. During the session, the Building Products & Equipment company that operates in wider Industrials sector, reached to the highest price of $62.25 whereas the lowest price it dropped to was $60.60. The 52-week range on AAON shows that it touched its highest point at $71.39 and its lowest point at $34.70 during that stretch. It currently has a 1-year price target of $74.44. With its current market cap of 4.97 billion, AAON has annualized dividend of $0.32 while the current yield stands at 0.53%. Beta for the stock currently stands at 0.83.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of AAON was down-trending over the past week, with a drop of -7.25%, but this was down by -3.27% over a month. Three-month performance dropped to -3.37% while six-month performance rose 3.51%. The stock gained 59.67% in the past year, while it has gained 21.36% so far this year. A look at the trailing 12-month EPS for AAON yields 1.81 with Next year EPS estimates of 2.24. For the next quarter, that number is 0.55. This implies an EPS growth rate of 69.70% for this year and 10.90% for next year. EPS is expected to grow by 12.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.50%.
Float and Shares Shorts:
At present, 81.61 million AAON shares are outstanding with a float of 67.38 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.61 million, which was 3.20% higher than short shares on Jul 30, 2023. In addition to Mr. Gary D. Fields as the firm’s Pres, CEO & Director, Mr. Norman H. Asbjornson serves as its Founder, Consultant & Director.
Through their ownership of 71.75% of AAON’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 46.30% of AAON, in contrast to 25.69% held by mutual funds. Shares owned by individuals account for 19.57%. As the largest shareholder in AAON with 11.46% of the stake, BlackRock Fund Advisors holds 6,218,784 shares worth 6,218,784. A second-largest stockholder of AAON, The Vanguard Group, Inc., holds 4,634,473 shares, controlling over 8.54% of the firm’s shares. Kayne Anderson Rudnick Investment is the third largest shareholder in AAON, holding 3,004,555 shares or 5.54% stake. With a 5.58% stake in AAON, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 3,027,237 shares are owned by the mutual fund manager. The Virtus KAR Small Cap Growth Fund, which owns about 3.92% of AAON stock, is the second-largest Mutual Fund holder. It holds 2,126,900 shares valued at 223.88 million. Conestoga Small Cap Fund holds 2.78% of the stake in AAON, owning 1,508,825 shares worth 158.82 million.
An Overview of Recent Financials:
Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Jun 29, 2023, AAON reported revenue of $208.81M and operating income of $20.44M. The EBITDA in the recently reported quarter was $29.96M and diluted EPS was $0.20.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AAON since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With AAON analysts setting a high price target of $80.00 and a low target of $64.00, the average target price over the next 12 months is $74.44. Based on these targets, AAON could surge 31.28% to reach the target high and rise by 5.02% to reach the target low. Reaching the average price target will result in a growth of 22.15% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy.
Dividends & Yield:
In terms of dividends, AAON has a current ratio of $0.32, which is $0.32 over the trailing 12-months, while a dividend of $0.25 is likely to be paid on average over the next five years. Dividend yield is another indicator that appeals to many investors, and AAON currently yields $0.66. In the past year, AAON’s dividend yield has been $0.66, but when looking at the stock over the past five years, its yield has been $0.63. Accordingly, AAON has a current buyback yield of $0.14. This was $0.14 for the TTM, and it was $0.73 for the past five years.
Summary of Insider Activity:
Insiders traded AAON stock several times over the past three months with 1 Buys and 3 Sells. In these transactions, 30,000 shares were bought while 51,920 shares were sold. The number of buy transactions has increased to 53 while that of sell transactions has risen to 70 over the past year. The total number of shares bought during that period was 181,550 while 192,666 shares were sold.