Aircastle's stock prices hit new lows after annoucing they will reduce dividends from 70c to 25c (a 64% reduction) as well as cuts in its available borrowing. This shock comes after an already steady decline in stock price due to high oil futures and struggling airline carriers.
Aircastle's stock prices rose by 14% as they announced a profit jump in Q4 2007 due to strong demand for aircraft rentals. Aircastle posted a profit of $35.3 million, or 46 cents per share, up from $19.8 million, or 39 cents per share, in the same quarter a year earlier. Revenue more than doubled to $120.7 million from $59.6 million.
Aircastle is currently trading approximately 19 percent below its 52 week high in June. The stock declined earlier due to the fear of a credit crunch. However, the company's entire portfolio is leased out, and it is shifting to buying and leasing freighters, which give better returns than passenger planes. Further, the company's COO recently bought 2,000 shares, which indicates that insiders think that their stock will go up.