David C. Abrams, a director and significant shareholder of Loar Holdings Inc. (NYSE:LOAR), has reported the sale of 1,006,461 shares of the company’s common stock. The transaction, which took place on December 12, 2024, was executed at an average price of $81.175 per share, totaling approximately $81.7 million.
Following the sale, Abrams holds 37,427,917 shares indirectly, as noted in the report. The shares sold were part of the holdings of several funds managed by Abrams, including Abrams Capital Partners (WA:CPAP) II, L.P., Riva Capital Partners IV, L.P., and others. According to InvestingPro, LOAR operates with strong liquidity, maintaining a current ratio of 3.95.
Abrams, through his role as managing member of various general partners and investment managers, may be deemed to share voting and dispositive power over the shares held by these funds. However, he disclaims beneficial ownership except to the extent of his pecuniary interest. InvestingPro analysis suggests the stock is currently trading above its Fair Value, with 14 additional key insights available to subscribers.
In other recent news, Loar Holdings Inc. reported impressive earnings and revenue results, with a 17% increase in organic growth, adjusted EBITDA of $35 million, and total sales reaching $97 million. The company also completed a strategic acquisition of Applied Avionics for $385 million, expected to increase annual revenues by approximately $40 million and adjusted EBITDA by around $20 million. Alongside these developments, Loar Holdings successfully completed an equity offering, resulting in approximately $310 million in net proceeds.
Analyst firms, including RBC Capital, Jefferies, Citi, and Morgan Stanley (NYSE:MS), maintained their positive outlook on Loar Holdings. RBC Capital, in particular, retained its Outperform rating and a $100 price target for the company's shares. These ratings reflect the firms' confidence in Loar's financial stability and future growth potential, especially given the recent acquisition and equity offering.
These are the recent developments for Loar Holdings, a company that continues to strengthen its strategic position in the aerospace sector. As always, it's important to note that these projections are based on analyst expectations, and actual results may vary.
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