In a recent transaction, Brett Milgrim, the Executive Co-Chairman of Loar Holdings Inc. (NASDAQ:LOAR), sold a significant portion of the company's stock. According to a Form 4 filing with the Securities and Exchange Commission, Milgrim sold 120,305 shares of common stock at a price of $81.175 per share on December 12, totaling approximately $9.77 million. The sale comes as LOAR shares have experienced a 13% decline over the past week, though maintaining a remarkable 62% gain year-to-date. According to InvestingPro analysis, the company currently appears overvalued at its $7.1 billion market capitalization.
Following the sale, Milgrim retains direct ownership of 3,865,327 shares. Additionally, he has indirect ownership of 608,541 shares through BNM Capital LLC, where he serves as the sole investments manager. Milgrim disclaims beneficial ownership of the indirectly held shares beyond his pecuniary interest. InvestingPro subscribers can access 14 additional key insights about LOAR's valuation and financial health, including detailed ownership analysis and future growth projections.
In other recent news, Loar Holdings Inc. reported strong earnings and revenue results, with a 17% increase in organic growth and an adjusted EBITDA of $35 million, and total sales reaching $97 million. The company also initiated a public offering of 4.75 million shares of common stock, with the proceeds intended for debt repayment and general corporate expenses. In addition, Loar Holdings completed the strategic acquisition of Applied Avionics for $385 million, which is expected to increase annual revenues by approximately $40 million and adjusted EBITDA by around $20 million.
RBC Capital has maintained its Outperform rating on Loar Holdings, with a price target of $100. This follows the successful completion of an equity offering and the acquisition of Applied Avionics. Other analyst firms, including Jefferies, Citi, and Morgan Stanley (NYSE:MS), have initiated coverage on Loar, expressing belief in the company's potential for significant free cash flow in the coming years.
These recent developments suggest a positive outlook on Loar Holdings' growth trajectory and financial strategy. However, these projections are based on analyst expectations, and actual results may vary.
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