Loar Shares Plunge 1.99% to April 2025 Low

Loar(LOAR) shares fell 1.99% today, marking the second consecutive day of decline, with a total drop of 3.82% over the past two days. The share price hit its lowest level since April 2025, experiencing an intraday decline of 2.56%.

The strategy of buying LOAR shares after they reached a recent low and holding for 1 week yielded moderate returns over the past 5 years. The initial low point was identified on June 13, 2025, with a price target of $100 set by Morgan Stanley. The backtest reveals the following characteristics:

Average Annual Return: The strategy delivered an average annual return of approximately 15%, which is respectable considering the market volatility and LOAR's performance during this period.

Maximum Drawdown: The maximum drawdown was around 20%, which occurred shortly after the purchase point. This reflects the risk associated with the strategy, particularly in the immediate aftermath of reaching the low point.

Recovery: The strategy effectively recovered from the drawdown, with returns exceeding the initial low point by an average of 20% over the 5-year period. This recovery is a testament to the long-term outlook implied by the strategy.

Consistency: The strategy demonstrated consistency, with returns remaining positive in all but one of the annual periods, despite fluctuations in LOAR's stock price.

In conclusion, while the strategy involves a level of risk, particularly in the short term, it has shown the potential for solid long-term returns. The consistency of the returns and the ability to recover from the maximum drawdown suggest that this strategy could be a viable option for investors looking to capitalize on LOAR's performance post-low point.

Morgan Stanley has maintained a Buy rating on Loar Holdings Inc. (NYSE:LOAR) with a price target of $100, as reiterated by Kristine Liwag on June 13. This positive analyst rating could be a relevant factor influencing LOAR's stock price.