FTAI

FTAI Aviation ($FTAI) Executives Signal 'Bottom Confidence' with Consecutive Large Purchases as Parts Business Surges 71%

11/14/2025 21:35

Top executives at FTAI Aviation ($FTAI) have been sending strong confidence signals through significant stock purchases in mid-November. Chief Operating Officer David Moreno purchased 6,637 shares at $153.69 per share on November 13, investing over $1 million, while Chief Financial Officer Eun Nam followed the next day with a purchase of 652 shares at $153.46. FTAI Aviation operates a unique dual business structure combining aircraft leasing with aircraft engine manufacturing. Based in New York, the company owns 421 aviation assets globally, including 109 commercial aircraft and 312 engines. The aerospace products segment, in particular, operates a vertically integrated business spanning engine development, repair, refurbishment, and aftermarket parts sales, generating high profitability. These executive purchases are particularly meaningful given the extreme volatility the stock experienced earlier this year. In January 2025, shares plummeted from $172 to $83 after short-seller Muddy Waters published a report questioning FTAI's financial reporting practices, particularly regarding MRO revenue and engine sales accounting. However, executives had already demonstrated strong buying conviction in May. CEO Joseph Adams Jr. purchased 3,000 shares for $283,620 at $94.54 per share on May 2, while COO Moreno made a substantial purchase of 6,580 shares for $624,113 on the same day. These purchases at price levels in the low-to-mid $90s demonstrated management's confidence in the company's intrinsic value. Investors should note that FTAI's business segments are showing clear differentiation in recent performance. Q2 2025 aerospace products revenue surged 71.6% year-over-year to $420.67 million, significantly exceeding analyst estimates of $390.3 million. In contrast, aviation leasing revenue grew just 0.8% to $185.97 million, well below expectations of $308.04 million. This performance divergence signals FTAI's strategic direction. The high-margin aerospace products manufacturing business is emerging as the growth driver, while the relatively capital-intensive and market-sensitive leasing business is seeing reduced emphasis. The aerospace products segment generated adjusted EBITDA of $164.86 million, above estimates, while leasing still contributed a solid $199.3 million, exceeding the $169.96 million forecast. At current levels around $174, FTAI presents compelling investment characteristics with strong insider buying signals alongside ongoing business structure improvements. The internal investigation following Muddy Waters' attack appears to be concluding, gradually resolving accounting transparency concerns. Twelve of thirteen brokerage analysts maintain 'buy' ratings, with a median price target of $182.57, suggesting 5% upside potential. However, investors must remain vigilant about significant risks. The company's debt-to-equity ratio of 1,381% reflects extremely high leverage, making it vulnerable to interest rate changes or aviation industry downturns. Additionally, some assets located in Russia remain exposed to geopolitical risks. Key upcoming catalysts include Q3 earnings results and the company's medium-to-long-term strategic outlook. Critical factors will be whether aerospace products growth momentum continues and whether concrete plans for leasing business profitability improvement are presented. Investors might consider profit-taking if shares break above $180 to new highs, while any decline below $150 could present additional buying opportunities.