Why FTAI Aviation (FTAI) Stock Is Falling Today

Max Juang /
2024/07/10 12:25 pm EDT

What Happened:

Shares of aircraft leasing company FTAI Aviation (NASDAQ:FTAI) fell 7.7% in the morning session after Wolfe Research analyst Myles Walton downgraded the stock's rating from Outperform (Buy) to Peer Perform (Hold). The analyst cited some reasons for the downgrade, adding, "Following a big run in the stock, we are running out of valuation runway even with anticipated potential positive revisions...Shares of FTAI have moved in a straight line as investors have found FTAI as a small- and mid-cap way to play the aerospace aftermarket."

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy FTAI Aviation? Access our full analysis report here, it's free.

What is the market telling us:

FTAI Aviation's shares are somewhat volatile and over the last year have had 7 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.

FTAI Aviation is up 115% since the beginning of the year, but at $97.24 per share it is still trading 9.9% below its 52-week high of $107.96 from July 2024. Investors who bought $1,000 worth of FTAI Aviation's shares 5 years ago would now be looking at an investment worth $6,412.

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