Senior VP Is Granted Shares of AAR (AIR)

Globe and Mail

6 days ago

Jessica A. Garascia, Senior VP, GC, CAO & Secretary, acquired 4,816 shares of AAR (NYSE:AIR) on July 17, 2025, via a grant transaction valued at approximately $402,810.
Transaction summary
Metric Value
Shares Traded 4,816
Transaction Value $402,810
Post-Transaction Shares 30,657
Year-to-date performance 29.8% total return as of July 20, 2025
Key questions
How does the size of this transaction compare to the insider's historical activity?
This purchase of 4,816 shares is below Jessica A. Garascia's historical median transaction size of 9,765 shares, based on transactions from November 2, 2022, to July 17, 2025, and well below the 75th percentile mark of 23,150 shares, indicating a relatively modest grant compared to prior activity.
What is the impact on insider ownership and alignment?
The transaction raises Garascia's post-transaction holdings to 30,657 shares, representing approximately 0.08% of total shares outstanding.
Is there any observable shift in trading behavior based on recent patterns?
Recent data shows a shift toward more balanced buy and sell activity, with the last five transactions split evenly between purchases and sales (50% buys over the past 12 months).
How does this transaction align with market performance?
The acquisition occurred after a 29.8% year-to-date total return for AAR as of July 20, 2025.
Company overview
Metric Value
Market Capitalization $2.91 billion
Revenue (TTM) $2.78 billion
Net Income (TTM) $12.50 million
One-Year Price Change 15.7%
Company snapshot
Provides aftermarket aviation services, including maintenance, repair, overhaul, inventory management, engineering, and expeditionary equipment for commercial and defense markets.
Generates revenue through service contracts, product sales, leasing, and performance-based supply chain logistics, with a focus on recurring support for aircraft fleets and government programs.
Serves domestic and foreign passenger and cargo airlines, regional carriers, OEMs, aircraft lessors, and military/government agencies worldwide.
AAR is a leading independent provider of aviation services, leveraging a global footprint to support commercial and defense customers with mission-critical aftermarket solutions.
Foolish take
Jessica A. Garascia is a Senior Vice President at AAR Corp, where she serves as General Counsel, Chief Administrative Officer, and Secretary. She recently acquired restricted stock worth slightly more than $400 thousand "upon certification of performance criteria pursuant to a Restricted Stock Agreement."
In other words, this is a reward for the company outperforming targets that had been set to trigger stock awards. Given that the stock has increased by 25% in 2025, shareholders are unlikely to begrudge the transaction, as it aligns with the principle that management should be incentivized to generate value for shareholders.
It comes as AAR Corp recently reported excellent fourth-quarter 2025 earnings, which closed out a year with 20% revenue growth and 17% earnings growth.
AAR Corp's primary business is parts supply, repair, and engineering services to commercial and cargo airlines, as well as aerospace original equipment manufacturers and military customers. It has long-standing relationships with its key customers. It has been performing well, as commercial flight departures have recovered, and airplane deliveries from Boeing and Airbus have lagged behind expectations in recent years.
That means older planes are flying more, and that's usually good news for companies whose end market is tied to the supply and repair of replacement parts. Couple that with good execution on its growth initiatives, such as its new parts distribution business, and the stock's outperformance seems justified.
Glossary
Insider: A company executive, director, or major shareholder with access to non-public company information.
Grant transaction: The allocation of shares or stock options to an employee, usually as part of compensation or incentive plans.
Post-transaction holdings: The total number of shares an insider owns after completing a transaction.
Total return: The investment's price change plus all dividends and distributions, assuming those payouts are reinvested.
Aftermarket aviation services: Maintenance, repair, and support provided for aircraft after their initial sale or delivery.
Maintenance, repair, overhaul (MRO): Services that keep aircraft operational, including routine checks, fixing issues, and major refurbishments.
Performance-based supply chain logistics: Service contracts where payment depends on meeting specific performance or delivery targets.
OEM (Original Equipment Manufacturer): A company that produces parts or equipment that may be marketed by another manufacturer.
Expeditionary equipment: Specialized gear designed for rapid deployment and use in field or military operations.
TTM: The 12-month period ending with the most recent quarterly report.
Insider ownership: The proportion of a company's shares held by its executives, directors, and key stakeholders.
Transaction value: The total dollar amount involved in a specific share purchase or sale.
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