What Happened?

Shares of aircraft leasing company FTAI Aviation (NASDAQ: FTAI) fell 7.3% in the afternoon session after investors took profit following a significant rally. The decline followed an extraordinary period for the stock, which had surged 187% over the previous year, likely prompting some investors to sell and secure their gains.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy FTAI Aviation? Access our full analysis report here, it’s free.

What Is The Market Telling Us

FTAI Aviation’s shares are extremely volatile and have had 41 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 20 days ago when the stock gained 6.5% on the news that it hit a record all-time high, driven by intense investor interest in its newly unveiled FTAI Power initiative. This strategic segment aims to convert CFM56 aircraft engines into aeroderivative power turbines specifically designed to support the energy-intensive needs of global data centers. Analysts from firms like Compass Point and RBC Capital significantly fueled the rally by raising their price targets, reaching as high as $327, citing a potential $500 million to $1 billion boost in incremental annual EBITDA from this venture. The stock also gained traction from robust momentum in the broader aerospace sector, where 2026 growth outlooks remain highly bullish. Investors increasingly rewarded FTAI's ability to leverage its massive engine fleet for high-margin power applications while maintaining its core aircraft leasing and maintenance services. With positive sentiment surrounding AI-related infrastructure and reports of insider share purchases, the market priced in a substantial expansion of the company's long-term earnings visibility.

FTAI Aviation is up 25.6% since the beginning of the year, but at $264.14 per share, it is still trading 10% below its 52-week high of $293.49 from January 2026. Investors who bought $1,000 worth of FTAI Aviation’s shares 5 years ago would now be looking at an investment worth $11,356.

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