Fox Run Management Increases Its Stake in AerCap Holdings

Fox Run Management L.L.C. has significantly increased its position in AerCap Holdings (NYSE:AER - Free Report) during the last quarter of the year, as reported in its latest Form 13F filing with the SEC. The firm, which specializes in financial services, grew its holdings by an impressive 398.0%, bringing its total ownership to 13,993 shares after acquiring an additional 11,183 shares during this period. As a result, Fox Run Management's investment in AerCap was valued at approximately $1,339,000 at the conclusion of the recent quarter.

Several other hedge funds have also adjusted their investments in AerCap. For instance, First Horizon Advisors Inc. increased its stake by 15.3% during the third quarter, now holding 814 shares valued at about $77,000 after purchasing an additional 108 shares. Similarly, Sumitomo Mitsui DS Asset Management Company Ltd raised its investment in AerCap by 0.6%, holding 19,192 shares valued at $1,837,000 after acquiring an extra 115 shares. Signaturefd LLC and Dorsey & Whitney Trust CO LLC made modest increases of 3.2% and 3.8%, respectively, in the fourth quarter. Lastly, Inspire Advisors LLC improved its position by 3.4% during the same quarter. Currently, institutional investors and hedge funds own a substantial 96.42% of AerCap's stock.

AerCap Stock Performance

On Friday, AerCap's shares opened at $102.13, reflecting a decrease of 2.4%. The stock has seen a one-year price range with a low of $81.93 and a high of $107.36. AerCap Holdings holds a market capitalization of $19.08 billion, with a price-to-earnings (P/E) ratio of 8.09. Other financial metrics include a PEG ratio of 2.22, a beta of 1.83, and debt-to-equity ratio of 2.89. The current and quick ratios stand at 0.67. For context, the stock's 50-day simple moving average is $98.89, while the 200-day moving average is $96.67.

AerCap recently published its quarterly earnings data. For the quarter ending February 26th, the financial services provider reported earnings per share of $3.31, which surpassed analysts' expectations of $2.56 by $0.75. The company demonstrated strong performance with a net margin of 32.38%, and a return on equity of 13.98%. Notably, it achieved revenues of $2.07 billion, exceeding the forecasted figure of $1.97 billion. Analysts are projecting that AerCap Holdings will report an EPS of 11.29 for the ongoing fiscal year.

Dividend Increase and Share Buyback Program

AerCap recently announced a quarterly dividend increase, set to be paid on April 3rd. Shareholders, as of March 12th, will receive a dividend of $0.27 per share, up from the previous $0.25. This yields an annualized dividend of $1.08, resulting in a dividend yield of 1.06%. The payout ratio stands at 9.99%. Furthermore, AerCap's Board of Directors has authorized a share buyback program aiming to repurchase up to $1.00 billion in outstanding shares, equivalent to about 4.9% of its total shares. Such buyback programs are typically viewed as a sign that the company's leadership perceives its stock to be undervalued.

Analyst Outlook

Analysts have expressed a range of opinions on AerCap. For example, Bank of America raised its price target on the stock from $105.00 to $125.00, assigning a "buy" rating. Barclays reiterated an "overweight" rating and updated its target price to $115.00, following an increase from $113.00. Susquehanna similarly raised its price target from $108.00 to $120.00, assigning a "positive" rating. On the downside, UBS Group downgraded AerCap to an "underperform" rating. Overall, one analyst rates the stock as a sell, one as hold, and six as a buy, resulting in a consensus rating of "Moderate Buy" with an average price target of $117.43.

About AerCap

AerCap Holdings N.V. specializes in the leasing, financing, sale, and management of commercial flight equipment on a global scale, including regions like China, Hong Kong, Macau, the United States, and Ireland. The company provides various aircraft asset management services, including remarketing of aircraft and engines, collecting rent payments, monitoring maintenance, ensuring contract compliance, and conducting financial performance reviews of lessees.

AerCap, Investment, Stocks