Alison Bomberg, a director and significant shareholder of Loar Holdings Inc. (NASDAQ:LOAR), reported the sale of 987,248 shares of the company’s common stock on December 12, 2024. The shares were sold at an average price of $81.175 per share, resulting in a total transaction value of approximately $80.1 million.
Following the transaction, Bomberg retains ownership of 36,713,441 shares in the company. The shares sold were held indirectly through various partnerships, including Abrams Capital Partners (WA:CPAP) II, L.P., Riva Capital Partners IV, L.P., Abrams Capital Partners I, L.P., Whitecrest Partners, LP, and Riva Capital Partners V, L.P. Bomberg is associated with these entities through her roles in related management companies, although she disclaims beneficial ownership except to the extent of her pecuniary interest. The company maintains a healthy liquidity position with a current ratio of 3.95, indicating strong ability to meet short-term obligations. For comprehensive insider trading analysis and additional insights, subscribers can access 16 more key metrics on InvestingPro.
In other recent news, Loar Holdings Inc. reported robust 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 roadshow for a public offering of 4.75 million shares of common stock, with the proceeds intended for debt repayment and general corporate expenses. Additionally, 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 Markets has adjusted its outlook on Loar Holdings, increasing the price target to $100 from the previous $80, while retaining an Outperform rating on the stock. This revision comes ahead of Loar Holdings' third-quarter earnings report. The firm's analyst cited multiple factors for the positive stance, including the company's unique market position, robust aerospace and defense industry fundamentals, and a potentially favorable environment for mergers and acquisitions.
Analyst firms, including Jefferies, Citi, and Morgan Stanley (NYSE:MS), have initiated coverage on Loar Holdings, expressing belief in the company's potential for significant free cash flow in the coming years and its focus on proprietary products. These recent developments highlight the recent strides made by Loar Holdings in its financial strategy and growth trajectory. However, it is important to note that these projections are based on analyst expectations, and actual results may vary.
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