AAON (NASDAQ:AAON) Shares Up 6.5% After Dividend Announcement

AAON, Inc. (NASDAQ:AAON - Get Free Report)'s share price shot up 6.5% during mid-day trading on Wednesday after the company announced a dividend. The company traded as high as $81.46 and last traded at $80.11. 209,149 shares traded hands during trading, a decline of 67% from the average session volume of 629,147 shares. The stock had previously closed at $75.25.

The newly announced dividend which will be paid on Friday, March 28th. Shareholders of record on Tuesday, March 18th will be paid a dividend of $0.10 per share. The ex-dividend date of this dividend is Tuesday, March 18th. This is an increase from AAON's previous quarterly dividend of $0.08. This represents a $0.40 dividend on an annualized basis and a yield of 0.49%. AAON's payout ratio is 15.92%.

Wall Street Analyst Weigh In

A number of brokerages have commented on AAON. Robert W. Baird reduced their target price on shares of AAON from $155.00 to $116.00 and set an "outperform" rating on the stock in a research note on Friday, February 28th. CJS Securities upgraded shares of AAON from a "market perform" rating to an "outperform" rating and set a $110.00 price target for the company in a research report on Friday, February 28th. StockNews.com cut shares of AAON from a "hold" rating to a "sell" rating in a research report on Friday, February 28th. Finally, DA Davidson dropped their price target on shares of AAON from $150.00 to $125.00 and set a "buy" rating for the company in a research report on Friday, February 28th. One investment analyst has rated the stock with a sell rating, one has issued a hold rating, four have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $115.50.

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AAON Stock Up 1.0 %

The company has a quick ratio of 1.79, a current ratio of 3.06 and a debt-to-equity ratio of 0.07. The stock has a market cap of $6.70 billion, a price-to-earnings ratio of 36.15 and a beta of 1.00. The business's fifty day moving average is $112.28 and its two-hundred day moving average is $113.65.

AAON declared that its Board of Directors has authorized a share repurchase plan on Tuesday, March 4th that allows the company to repurchase $30.00 million in shares. This repurchase authorization allows the construction company to buy up to 0.5% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company's board believes its stock is undervalued.

Insider Activity at AAON

In related news, VP Stephen E. Wakefield sold 5,362 shares of AAON stock in a transaction that occurred on Friday, December 13th. The shares were sold at an average price of $130.99, for a total value of $702,368.38. Following the completion of the transaction, the vice president now owns 4,558 shares in the company, valued at approximately $597,052.42. The trade was a 54.05 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Company insiders own 18.55% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in AAON. Norges Bank purchased a new position in AAON in the fourth quarter worth approximately $76,581,000. Raymond James Financial Inc. purchased a new position in AAON in the fourth quarter worth approximately $73,313,000. Wasatch Advisors LP lifted its stake in AAON by 39.1% in the third quarter. Wasatch Advisors LP now owns 1,866,746 shares of the construction company's stock worth $201,310,000 after acquiring an additional 525,132 shares during the last quarter. First Trust Advisors LP lifted its stake in AAON by 85.6% in the fourth quarter. First Trust Advisors LP now owns 1,069,112 shares of the construction company's stock worth $125,813,000 after acquiring an additional 493,219 shares during the last quarter. Finally, Alyeska Investment Group L.P. purchased a new position in AAON in the fourth quarter worth approximately $42,449,000. Hedge funds and other institutional investors own 70.81% of the company's stock.

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.