Shares of aircraft leasing company FTAI Aviation plummeted 28.3% after the company released additional information following a negative short report by Muddy Waters. The report alleged that FTAI has engaged in misleading accounting practices to boost its business.
FTAI Aviation strongly disagreed with the assertions, but its response raised concerns about potential delays in filing its annual report due to the timing of the report and any required review. This has led investors to question the accuracy of FTAI’s financial statements.
The stock market overreacted to this news, causing a significant price drop. However, some analysts see this as an opportunity to buy high-quality stocks at a low price. Despite its volatility, FTAI Aviation is trading 52.3% below its 52-week high, making it a potential value investment for long-term holders.
Investors who purchased the stock five years ago would now be looking at a nearly $4,000 gain if they still held their shares. With free cash flow and share buybacks, FTAI Aviation appears to be an attractive option for those seeking stable investments with growth potential.
Source: https://finance.yahoo.com/news/why-ftai-aviation-ftai-shares-170207849.html