Blackstone Inc. (NYSE:BX) has disclosed the sale of shares in Loar Holdings Inc. (NASDAQ:LOAR) valued at approximately $27.2 million. The transaction, which took place on December 12, involved multiple sales at a price of $81.175 per share. The sale comes as Loar's stock has experienced a 13% decline over the past week, though InvestingPro data indicates the company maintains strong financial health with a current ratio of 3.95.
The sales were executed by various entities associated with Blackstone, including Blackstone Holdings IV L.P., Blackstone Holdings IV GP L.P., and others. These entities, which are considered ten percent owners, collectively sold a total of 335,487 shares of Loar Holdings. The company currently trades at a P/E ratio of 404x, suggesting a premium valuation.
Following the transactions, Blackstone and its affiliates continue to hold significant positions in Loar Holdings, with shares retained by entities such as GSO Capital Opportunities Fund III LP, Blackstone Private Credit Fund, and others. The sales were conducted as part of a secondary offering, as indicated by the transaction details. With an impressive gross profit margin of 49.4%, InvestingPro subscribers can access 15+ additional key metrics and insights about Loar's financial performance.
In other recent news, Loar Holdings Inc. has been making significant strides in its financial strategy and growth trajectory. The company reported strong earnings and revenue results with a 17% increase in organic growth, an adjusted EBITDA of $35 million, and total sales reaching $97 million. Additionally, Loar Holdings recently completed a strategic acquisition of Applied Avionics for $385 million, set to increase annual revenues by approximately $40 million and adjusted EBITDA by around $20 million.
Loar Holdings also successfully completed an equity offering which resulted in roughly $310 million in net proceeds. The offering included around 5.8 million shares, with two-thirds being primary and one-third secondary. This move is expected to lead to a reduction in debt and lower interest expenses, strengthening the company's balance sheet.
Analyst firms, including RBC Capital, Jefferies, Citi, and Morgan Stanley (NYSE:MS), have shown confidence in Loar Holdings. RBC Capital maintained its Outperform rating for Loar Holdings, citing the company's strong position to benefit from a robust aerospace manufacturing outlook. The firm also raised its price target for Loar Holdings to $100.00. Citi and Morgan Stanley also provided positive ratings, reflecting the company's potential for significant free cash flow in the coming years.
These recent developments show Loar Holdings' commitment to financial stability and growth in the aerospace sector. However, it should be noted that these projections are based on analyst expectations, and actual results may vary.
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