FTAI Aviation Tumbles After Launch Of Review Following Short Seller Report: Retail Sentiment Nosedives

FTAI Aviation shares plunged 29% on Tuesday after the company launched a review following a Muddy Waters report that alleged that the company’s financial reporting was “highly misleading.”

The jet aircraft lessor said that even though it strongly disagrees with the assertions in the short seller's report, the filing of its annual report could be delayed.

Last week, Muddy Waters alleged that FTAI was reporting one-time engine sales as Maintenance Repair & Overhaul revenue in its Aerospace Products segment.

The short seller said, “The misrepresentations appear to be to generate a valuation materially more significant than that of a leasing business.”

In December, FTAI launched a partnership with third-party investors to buy 737NG and A320ceo aircraft.

FTAI also agreed to sell 46 on-lease narrow-body aircraft worth $549 million.

Prior to the report, it projected 2025 adjusted core earnings from its reportable segments in the range of $1.1 to $1.15 billion.

In the third-quarter, the company had reported total revenue of $465.8 million, compared with $291.1 million, in the year-ago quarter.  

Following Tuesday’s update, the retail sentiment on Stocktwits slumped to ‘extremely bearish’ (10/100) territory from ‘neutral’(50/100) a day ago, while retail sentiment flipped to ‘high.’

Users were quick to raise their concerns on Tuesday.

However, some users remained bullish on the stock.

Over the past year, stock is up 57%.

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