Alex A. Khatibi, Executive Vice President of Air Lease Corp (NYSE:AL), recently sold 10,000 shares of the company's Class A common stock. The shares were sold on November 26 at a weighted average price of $50.4012, with individual sale prices ranging from $51.36 to $51.44. This transaction resulted in a total sale value of approximately $504,012. Following the sale, Khatibi holds 66,300 shares directly.
In other recent news, Air Lease Corporation reported robust Q3 earnings, marking a 5% year-over-year increase with revenues reaching $690 million and earnings per share at $0.82. The company expanded its fleet with 20 new aircraft valued at $1.9 billion and sold nine aircraft for an estimated $340 million. Despite challenges like the Boeing (NYSE:BA) labor strike and aircraft delivery delays, Air Lease Corporation expects substantial deliveries in the fourth quarter.
Goldman Sachs has resumed coverage on Air Lease with a Buy rating, based on the anticipation of expanding net spreads for the company in 2025 and beyond, driven by a robust orderbook of in-demand aircraft and favorable lease terms. Most aircraft set to be delivered in 2025 have already had their lease terms secured in 2023, at rates trending 15% to 20% higher compared to pre-pandemic levels. This is projected to benefit Air Lease's financial performance in the coming years.
These recent developments showcase the company's resilience amidst industry challenges, with a strong liquidity position of $7.5 billion and a healthy debt-to-equity ratio of 2.63 times. Air Lease Corporation's strategic fleet management and focus on maintaining a young and technologically advanced fleet have been key to its success. Future lease rates are expected to increase amid strong demand for new aircraft, continuing despite supply constraints.
InvestingPro Insights
As Alex A. Khatibi reduces his stake in Air Lease Corp (NYSE:AL), investors might be curious about the company's financial health and market position. According to InvestingPro data, Air Lease Corp currently boasts a market capitalization of $5.64 billion, with a price-to-earnings ratio of 11.49, suggesting a relatively attractive valuation compared to industry peers.
The company's financial performance has been solid, with revenue growth of 6.51% over the last twelve months as of Q3 2024, reaching $2.74 billion. Air Lease Corp also maintains an impressive gross profit margin of 58.99%, indicating strong operational efficiency.
InvestingPro Tips highlight that Air Lease Corp has raised its dividend for 12 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth, coupled with a current dividend yield of 1.72%, may appeal to income-focused investors. The company's stock has also shown strong performance, with a 36.76% total return over the past year.
However, it's worth noting that Air Lease Corp operates with a significant debt burden, which could be a concern in a rising interest rate environment. Additionally, the stock's recent performance has pushed it into overbought territory according to the Relative Strength Index (RSI), suggesting that the current price levels may be stretched.
For investors seeking a more comprehensive analysis, InvestingPro offers 13 additional tips for Air Lease Corp, providing a deeper dive into the company's financial health and market prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.