William Blair Issues Pessimistic Forecast for AAON Earnings

AAON, Inc. (NASDAQ:AAON) – Analysts at William Blair decreased their FY2026 earnings per share (EPS) estimates for AAON in a research report issued on Wednesday, June 4th. William Blair analyst R. Merkel now forecasts that the construction company will earn $3.20 per share for the year, down from their previous estimate of $3.23. The consensus estimate for AAON’s current full-year earnings is $2.26 per share.

AAON (NASDAQ:AAON) last announced its quarterly earnings results on Wednesday, April 30th. The construction company reported $0.37 EPS for the quarter, topping the consensus estimate of $0.24 by $0.13. The company had revenue of $322.05 million during the quarter, compared to analyst estimates of $289.16 million. AAON had a return on equity of 24.98% and a net margin of 15.78%. The firm’s revenue was up 22.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.46 earnings per share.

AAON has been the subject of several other reports. CJS Securities upgraded AAON from a “market perform” rating to an “outperform” rating and set a $110.00 price target for the company in a research note on Friday, February 28th. Robert W. Baird dropped their price target on AAON from $155.00 to $116.00 and set an “outperform” rating for the company in a research note on Friday, February 28th. DA Davidson dropped their price target on AAON from $150.00 to $125.00 and set a “buy” rating for the company in a research note on Friday, February 28th. Finally, Wall Street Zen lowered AAON from a “hold” rating to a “sell” rating in a research note on Friday, February 28th. One analyst has rated the stock with a sell rating, one has given a hold rating, three have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $115.50.

AAON Stock Performance

Shares of NASDAQ:AAON opened at $96.68 on Monday. The firm has a market capitalization of $7.87 billion, a PE ratio of 42.59 and a beta of 1.03. The company has a debt-to-equity ratio of 0.07, a current ratio of 3.06 and a quick ratio of 1.79. The business has a 50-day moving average of $91.37 and a two-hundred day moving average of $104.58. AAON has a 12 month low of $68.98 and a 12 month high of $144.07.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Vanguard Group Inc. boosted its holdings in AAON by 4.4% in the first quarter. Vanguard Group Inc. now owns 6,516,204 shares of the construction company’s stock valued at $509,111,000 after purchasing an additional 276,722 shares during the last quarter. JPMorgan Chase & Co. boosted its holdings in AAON by 4.8% in the third quarter. JPMorgan Chase & Co. now owns 3,260,526 shares of the construction company’s stock valued at $351,615,000 after purchasing an additional 150,207 shares during the last quarter. Blair William & Co. IL boosted its holdings in AAON by 86.2% in the first quarter. Blair William & Co. IL now owns 2,177,688 shares of the construction company’s stock valued at $170,143,000 after purchasing an additional 1,007,906 shares during the last quarter. Invesco Ltd. boosted its holdings in AAON by 15.6% in the fourth quarter. Invesco Ltd. now owns 2,032,497 shares of the construction company’s stock valued at $239,184,000 after purchasing an additional 274,119 shares during the last quarter. Finally, Geneva Capital Management LLC boosted its holdings in AAON by 13.1% in the first quarter. Geneva Capital Management LLC now owns 1,897,728 shares of the construction company’s stock valued at $148,269,000 after purchasing an additional 219,814 shares during the last quarter. Hedge funds and other institutional investors own 70.81% of the company’s stock.

Insider Activity

In related news, CEO Gary D. Fields sold 8,357 shares of the stock in a transaction dated Thursday, May 8th. The stock was sold at an average price of $98.66, for a total value of $824,501.62. Following the completion of the transaction, the chief executive officer now owns 26,491 shares of the company’s stock, valued at approximately $2,613,602.06. This represents a 23.98% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, Director Gordon Douglas Wichman sold 3,975 shares of the stock in a transaction dated Monday, May 19th. The shares were sold at an average price of $105.75, for a total value of $420,356.25. Following the completion of the transaction, the director now directly owns 8,754 shares of the company’s stock, valued at $925,735.50. This represents a 31.23% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 70,823 shares of company stock worth $7,122,451. 18.70% of the stock is currently owned by corporate insiders.

AAON Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Friday, June 27th. Stockholders of record on Friday, June 6th will be paid a $0.10 dividend. The ex-dividend date of this dividend is Friday, June 6th. This represents a $0.40 dividend on an annualized basis and a dividend yield of 0.41%. AAON’s dividend payout ratio (DPR) is currently 21.05%.

AAON declared that its board has approved a share repurchase program on Tuesday, March 4th that permits the company to buyback $30.00 million in outstanding shares. This buyback authorization permits the construction company to buy up to 0.5% of its shares through open market purchases. Shares buyback programs are generally an indication that the company’s leadership believes its stock is undervalued.

AAON Company Profile

AAON, Inc, together with its subsidiaries, engages in engineering, manufacturing, marketing, and selling air conditioning and heating equipment in the United States and Canada. The company operates through three segments: AAON Oklahoma, AAON Coil Products, and BASX. It offers rooftop units, data center cooling solutions, cleanroom systems, chillers, packaged outdoor mechanical rooms, air handling units, makeup air units, energy recovery units, condensing units, geothermal/water-source heat pumps, coils, and controls.