Why AerCap Holdings' Shares Are Flying High Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of AerCap Holdings (NYSE: AER  ) jumped as much as 16% today after rumors emerged that the company may be up for sale.

So what: Flightglobal.com reported via Twitter that AerCap is looking into strategic options and had hired Goldman Sachs to advise the company. Wells Fargo analyst Gary Liebowitz thinks the company could go for $17 per share in a sale, more than $4 from the current share price.

Now what: Betting on buyouts is risky business, so I wouldn't be buying on this news alone. With that said, shares aren't a bad value at 11 times trailing earnings and less than six times forward earnings estimates. If shares fall from today's high, the stock would be a good buy, but I'd like to let the rumors die down first.

Interested in more info on AerCap Holdings? Add it to your watchlist by clicking here.

Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.

The Fool owns shares of and has created a covered strangle position in Wells Fargo. Motley Fool newsletter services have recommended buying shares of Goldman Sachs Group and Wells Fargo. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1938792, ~/Articles/ArticleHandler.aspx, 11/26/2014 4:15:01 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement