What is happening behind the scenes at the defense company operating under the radar?
Since the start of the conflict in Iran, defense and security stocks have been in the spotlight of headlines and investors
One company, less known, is $LOAR
Loar Holdings is a player in the aerospace and defense industry; the company specializes in the design and manufacture of essential and niche components for civilian and military aircraft (30% of its revenue comes from defense and security clients).
The company's business model includes regular acquisitions and mergers
The company has updated that it has acquired at least one or two companies every year since 2012.
The company holds a unique portfolio of over 25,000 specialized products for the aviation market, and similar to other companies in the field (like $TDG), most of the company's products are "Sole-Source", meaning it is their sole manufacturer.
As a monopoly, this gives it enormous pricing power and very high profit margins.
In the last quarter, earnings per share were $0.26, marking 136% year-over-year growth, and beat estimates of $0.19.
Revenue was $131.75 million and grew by almost 20% quarter-over-quarter, above estimates of $128 million.
Operating profit margins increased from 48.9% to 52.1%.
Net income rose from $3.6 million to $12.5 million.
Also in the company's latest annual summary, the data was interesting:
Net income grew from $22.2 million to $72 million.
Profit margins increased from 5.25% to 14.5%.
The company also announced record order levels along with a large pipeline of new products.
In response, it raised its revenue guidance for 2026 to $650 million, much higher than the $496 million it generated in 2025.
Despite the strong growth, the stock price went back in time to 24/07/2025?
The war with Iran?
Doesn't exactly move the stock price
But behind the scenes, someone probably thinks the math doesn't add up?
No less than 3 different directors are pulling out their wallets and buying the stock with their private funds
1. Charles Dirksen, CEO and director, purchased approximately 88,000 shares (in two tranches) for a total value of approximately $5,900,000.
2. Raja Bobbili, director and partner in the company, purchased 50,000 shares for a value of approximately $3,180,000
3. Anthony Carpanito, director and interested party, purchased 4,800 shares for a value of approximately $311,000.
In summary, this amounts to cumulative insider purchases of nearly $10 million within 48 hours by the people who manage the company.
And here, we wonder
What do they know that we don't?
We are monitoring