Aug. 23 at 3:49 PM
$AADX “Its biggest asset is scale, creating a one-stop shop for primes and defense tech companies alike to get proven consistent performance at a competitive price point,” says Jefferies analyst Sheila Kahyaoglu.
Bringing advanced manufacturing capabilities to the U.S., while serving growing businesses such as space and autonomous weapons, feels like a recipe for stock market success. That hasn’t been the case, though.
Applied sold shares in a June initial public offering at
$20, raising about
$650 million. That was mainly used to repay debt amassed as private-equity owner Greenbriar Equity built the company via acquisition. Shares traded as high as
$24.24 shortly after the deal, but have failed to maintain altitude, closing below
$17.50 apiece on Wednesday.
Greenbriar’s ownership is one issue that has weighed on investor sentiment. It still owns about 75% of the shares outstanding. Greenbriar is likely to sell eventually, and selling a lot of anything can drive down the price.
