AAON (NASDAQ:AAON) Shares Gap Up Following Strong Earnings

Shares of AAON, Inc. (NASDAQ:AAON) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $91.27, but opened at $100.00. AAON shares last traded at $96.07, with a volume of 85,590 shares traded.

The construction company reported $0.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.24 by $0.13. The business had revenue of $322.05 million for the quarter, compared to analyst estimates of $289.16 million. AAON had a return on equity of 24.98% and a net margin of 15.78%. The business’s revenue was up 22.9% compared to the same quarter last year. During the same period in the prior year, the company posted $0.46 EPS.

AAON Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Friday, March 28th. Stockholders of record on Tuesday, March 18th were issued a $0.10 dividend. The ex-dividend date was Tuesday, March 18th. This is a positive change from AAON’s previous quarterly dividend of $0.08. This represents a $0.40 annualized dividend and a dividend yield of 0.40%. AAON’s payout ratio is 19.90%.

AAON announced that its Board of Directors has authorized a share repurchase program on Tuesday, March 4th that authorizes the company to buyback $30.00 million in outstanding shares. This buyback authorization authorizes the construction company to purchase up to 0.5% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s management believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research firms recently issued reports on AAON. StockNews.com lowered AAON from a “hold” rating to a “sell” rating in a research report on Friday, February 28th. CJS Securities upgraded shares of AAON from a “market perform” rating to an “outperform” rating and set a $110.00 price target for the company in a research report on Friday, February 28th. Robert W. Baird cut their price objective on shares of AAON from $155.00 to $116.00 and set an “outperform” rating on the stock in a research report on Friday, February 28th. Finally, DA Davidson decreased their target price on shares of AAON from $150.00 to $125.00 and set a “buy” rating for the company in a research report on Friday, February 28th. One research analyst has rated the stock with a sell rating, one has assigned a hold rating, three have given a buy rating and one has issued a strong buy rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $115.50.

Insider Transactions at AAON

In related news, Director David Raymond Stewart acquired 1,000 shares of the firm’s stock in a transaction dated Wednesday, March 5th. The stock was acquired at an average cost of $80.86 per share, for a total transaction of $80,860.00. Following the completion of the acquisition, the director now directly owns 3,000 shares of the company’s stock, valued at approximately $242,580. The trade was a 50.00 % increase in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Company insiders own 18.70% of the company’s stock.

Institutional Investors Weigh In On AAON

Institutional investors have recently added to or reduced their stakes in the company. PNC Financial Services Group Inc. raised its stake in shares of AAON by 6.7% in the 4th quarter. PNC Financial Services Group Inc. now owns 3,868 shares of the construction company’s stock worth $455,000 after buying an additional 244 shares in the last quarter. Avior Wealth Management LLC raised its position in AAON by 5,040.4% in the fourth quarter. Avior Wealth Management LLC now owns 2,416 shares of the construction company’s stock worth $284,000 after acquiring an additional 2,369 shares in the last quarter. SG Americas Securities LLC lifted its holdings in AAON by 691.1% in the 4th quarter. SG Americas Securities LLC now owns 24,666 shares of the construction company’s stock valued at $2,903,000 after acquiring an additional 21,548 shares during the last quarter. Lord Abbett & CO. LLC boosted its position in shares of AAON by 39.1% during the 3rd quarter. Lord Abbett & CO. LLC now owns 288,581 shares of the construction company’s stock valued at $31,121,000 after purchasing an additional 81,111 shares in the last quarter. Finally, Caldwell Investment Management Ltd. acquired a new position in shares of AAON in the 4th quarter worth approximately $1,099,000. 70.81% of the stock is currently owned by institutional investors and hedge funds.

AAON Price Performance

The firm has a market capitalization of $8.08 billion, a P/E ratio of 43.78 and a beta of 0.96. The business’s fifty day moving average is $81.96 and its 200 day moving average is $108.47. The company has a current ratio of 3.06, a quick ratio of 1.79 and a debt-to-equity ratio of 0.07.

AAON Company Profile

AAON, Inc, together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.