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.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock moves more than 5%, we provide you with a timely explanation straight to your inbox. It's free and will only take you a second.