Loar (NYSE:LOAR) Stock Rating Lowered by Zacks Research

Loar (NYSE:LOAR) was downgraded by equities researchers at Zacks Research from a “strong-buy” rating to a “hold” rating in a research report issued to clients and investors on Wednesday,Zacks.com reports.

A number of other equities analysts have also weighed in on the stock. Royal Bank Of Canada cut their target price on shares of Loar from $90.00 to $80.00 and set an “outperform” rating for the company in a research report on Friday, May 8th. Jefferies Financial Group set a $75.00 price target on shares of Loar in a research note on Sunday, May 10th. Citigroup raised their price objective on shares of Loar from $71.00 to $87.00 and gave the stock a “buy” rating in a report on Thursday, June 25th. Morgan Stanley reiterated an “equal weight” rating and issued a $82.00 price objective (down from $91.00) on shares of Loar in a research note on Wednesday, July 15th. Finally, Weiss Ratings raised shares of Loar from a “hold (c-)” rating to a “hold (c)” rating in a report on Friday, July 10th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $84.40.

Loar Stock Down 3.2%

LOAR stock opened at $73.24 on Wednesday. The company has a debt-to-equity ratio of 0.80, a quick ratio of 2.89 and a current ratio of 4.56. The company has a market capitalization of $6.86 billion, a price-to-earnings ratio of 103.15 and a beta of 0.56. Loar has a fifty-two week low of $53.15 and a fifty-two week high of $83.43. The stock has a fifty day moving average of $71.24 and a 200-day moving average of $66.65.

Loar (NYSE:LOAR) last announced its quarterly earnings data on Thursday, August 6th. The company reported $0.38 earnings per share for the quarter, topping the consensus estimate of $0.31 by $0.07. Loar had a return on equity of 8.47% and a net margin of 12.64%.The company had revenue of $171.58 million during the quarter, compared to analyst estimates of $162.80 million. During the same quarter last year, the firm posted $0.23 EPS. The firm’s revenue for the quarter was up 39.4% on a year-over-year basis. Loar has set its FY 2026 guidance at 1.320-1.360 EPS. As a group, equities research analysts predict that Loar will post 1.16 earnings per share for the current year.

Insider Activity

In other news, Director Taiwo K. Danmola sold 35,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $60.59, for a total value of $2,120,650.00. Following the completion of the transaction, the director directly owned 54,286 shares in the company, valued at approximately $3,289,188.74. This trade represents a 39.20% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders own 20.10% of the company’s stock.

Institutional Trading of Loar

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. UBS Group AG increased its position in shares of Loar by 266.0% in the fourth quarter. UBS Group AG now owns 1,276,780 shares of the company’s stock worth $86,821,000 after purchasing an additional 927,908 shares during the last quarter. WINTON GROUP Ltd bought a new stake in Loar during the fourth quarter valued at approximately $1,836,000. Seven Grand Managers LLC lifted its position in Loar by 33.3% during the fourth quarter. Seven Grand Managers LLC now owns 100,000 shares of the company’s stock valued at $6,800,000 after purchasing an additional 25,000 shares during the last quarter. Yorktown Management & Research Co Inc purchased a new position in Loar in the 4th quarter worth approximately $544,000. Finally, Norges Bank purchased a new position in Loar in the 4th quarter worth approximately $46,053,000.

Key Stories Impacting Loar

Here are the key news stories impacting Loar this week:

• Positive Sentiment: Q2 results exceeded expectations: Loar reported quarterly earnings of $0.38 per share, above the $0.31 analyst consensus, while revenue reached $171.6 million versus expectations of $162.8 million. Revenue increased 39.4% year over year. Loar Beats Q2 Earnings and Revenue Estimates
• Positive Sentiment: Full-year outlook was raised: Management now expects 2026 revenue of $665 million to $675 million and EPS of $1.32 to $1.36, above consensus estimates of $652.5 million and $1.28, respectively. The company cited strong demand across its aerospace and defense markets and continued conversion of its new-business pipeline. Loar Reports Q2 Record Results
• Positive Sentiment: Profitability improved: Adjusted EBITDA rose 47.4% to $69.4 million, and the adjusted EBITDA margin expanded to 40.5% from 38.3% a year earlier. Recent reported insider activity also showed purchases and no sales, which may provide a modest confidence signal.
• Neutral Sentiment: Institutional positioning was mixed: Several large investors, including Wellington Management, Capital International Investors, BNY Mellon and UBS, increased their holdings, while AllianceBernstein and T. Rowe Price reduced positions.
• Negative Sentiment: Zacks downgraded LOAR: Zacks Research lowered its rating from “Strong Buy” to “Hold.” The change may be weighing on the stock despite the earnings beat, particularly as Loar trades at a relatively high price-to-earnings ratio of about 103.

About Loar

Loar Holdings Inc, through its subsidiaries, designs, manufactures, and markets aerospace and defense components for aircraft, and aerospace and defense systems in the United States and internationally. It offers products in various categories, which include airframe components, structural components, avionics, composites, braking system components, de-ice and ice protection, electro-mechanical, engineered materials, flight controls, fluid and motion controls, environmental, metal forming, molded components, and restraints and safety devices.