By Sabela Ojea
Shares of FTAI Aviation on Thursday bounced back after the company said it disagreed with the accounting accusation of short seller Muddy Waters Research and called its report an attempt to manipulate the stock price.
The stock was up 7.3% to $124.55 in late-morning trading after dropping about 24% on Wednesday. Shares have fallen 14% since the beginning of the year, but have surged nearly 160% over the past 12 months.
FTAI Aviation, which owns and maintains commercial jet engines, said that its maintenance, repair and overhaul business continues to drive exceptional growth in adjusted earnings before interest, taxed, depreciation and amortization.
In the report, Muddy Waters had accused FTAI Aviation of an alleged accounting manipulation within the maintenance, repair and overhaul business. It had also said that FTAI Aviation had misrepresented whole engine sales as smaller, higher-margin module sales.
"We strongly disagree with the assertions made by this notorious short-seller, several of which are sourced to a single, anonymous individual who is described only as 'a former FTAI executive' and whose agenda is not explained," the company said as part of its response to Muddy Waters.
Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix
(END) Dow Jones Newswires
January 16, 2025 11:55 ET (16:55 GMT)
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