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 (NYS: 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.
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At the time this article was published 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.