FTAI Aviation’s Stock Swings on CFM Deal and Major Shareholder Sell-Off
FTAI Aviation has experienced a volatile week in its stock market performance. The company announced a major expansion of its partnership with CFM International, yet a large investor, stockx Y Intercept Hong Kong Ltd., sold over 60,000 shares, slashing its stake by 52.2%. These mixed signals have left analysts watching closely as earnings approach.
The company strengthened its position in aircraft maintenance by deepening ties with CFM International. The deal grants FTAI direct access to original spare parts and expert repairs for the CFM56 engine. This move is expected to boost its maintenance, repair, and overhaul (MRO) operations.
Meanwhile, stockx Y Intercept Hong Kong Ltd. sold over 60,000 shares, slashing its stake by 52.2%. The sale followed a 224% rally in the stock over the past year. No other major sell-offs by institutions have been reported recently. Financial results for the last quarter showed revenue jumping 43.2% to $667 million. However, earnings per share came in at $1.10, below the $1.19 forecast. The company’s 'FTAI Power' segment has also gained attention by repurposing CFM56 engines into gas turbines for AI data centres, prompting analysts to raise price targets. Analysts currently rate the stock a 'Moderate Buy', with estimates ranging from $240 to $335. The $300 level remains a key resistance point ahead of the upcoming earnings report. FTAI Aviation will release its full-year 2024 financials on February 25.
The company’s stock faces opposing forces: a strategic partnership improving long-term prospects and a significant share sale adding pressure. Investors will now focus on the February 25 earnings release for clearer direction. The $300 mark remains a critical threshold for near-term movement.
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