Abrams Capital Management, L.P., a prominent investment firm, has disclosed the sale of shares in Loar Holdings Inc. (NASDAQ:LOAR), according to a recent SEC filing. The firm sold a total of 1,006,461 shares at an average price of $81.175 per share, amounting to approximately $81.7 million. Following this transaction, Abrams Capital holds 37,427,917 shares in the aircraft parts and auxiliary equipment company, which currently has a market capitalization of $7.1 billion. The stock has experienced a significant 13% decline over the past week, despite maintaining impressive gross profit margins of 49%. According to InvestingPro analysis, LOAR appears to be trading above its Fair Value.
The shares sold were distributed among various entities under Abrams Capital's management, including Abrams Capital Partners (WA:CPAP) II, L.P., Riva Capital Partners IV, L.P., and others. With a strong current ratio of 3.95, LOAR maintains robust liquidity to meet its obligations. Unlock more valuable insights about LOAR's financial health with InvestingPro, which offers 14 additional investment tips. The sale reflects a strategic adjustment in Abrams Capital's holdings, while the firm remains a significant shareholder in Loar Holdings.
In other recent news, Loar Holdings Inc. has made significant strides in its financial strategy and growth trajectory. The company reported robust earnings and revenue results, with a 17% increase in organic growth, an adjusted EBITDA of $35 million, and total sales reaching $97 million.
Following this, Loar Holdings initiated a public offering of 4.75 million shares of common stock, with the proceeds intended for debt repayment and general corporate expenses. The company also completed a 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 been consistent in its support for Loar Holdings, maintaining an Outperform rating. The firm recently adjusted its price target for Loar Holdings to $100, anticipating a reduction in debt and lower interest expenses due to the successful equity offering.
Analyst firms Jefferies, Citi, and Morgan Stanley (NYSE:MS) have initiated coverage on Loar Holdings, expressing confidence in the company's potential for significant free cash flow in the coming years and its focus on proprietary products. These are the recent developments in Loar Holdings' growth trajectory and financial strategy.
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