Amentum (NYSE:AMTM) Downgraded by Zacks Research to "Strong Sell"

Key Points

• Zacks Research downgraded Amentum from “hold” to “strong sell,” while the broader analyst consensus remains “hold” with a $29.18 average price target.
• Amentum shares opened at $18.14, near their 52-week low of $17.72 and well below the 52-week high of $38.11, reflecting continued weakness in the stock.
• The company beat quarterly EPS expectations, reporting $0.67 versus the $0.61 consensus, but revenue of $3.49 billion fell short of estimates and declined 2% year over year.

Amentum (NYSE:AMTM - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a report released on Thursday, Zacks reports.

A number of other equities research analysts have also issued reports on AMTM. Morgan Stanley set a $24.00 price target on Amentum in a research report on Tuesday, August 11th. Weiss Ratings reissued a "hold (c-)" rating on shares of Amentum in a research report on Friday, September 18th. Wall Street Zen upgraded shares of Amentum from a "hold" rating to a "buy" rating in a research note on Sunday, September 20th. Bank of America reduced their target price on shares of Amentum from $35.00 to $30.00 and set a "neutral" rating on the stock in a report on Monday, July 20th. Finally, BTIG Research decreased their price target on shares of Amentum from $35.00 to $30.00 and set a "buy" rating for the company in a research note on Wednesday, August 12th. Five equities research analysts have rated the stock with a Buy rating, six have issued a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat.com, Amentum has a consensus rating of "Hold" and a consensus target price of $29.18.

Amentum Stock Performance

NYSE:AMTM opened at $18.14 on Thursday. Amentum has a 52 week low of $17.72 and a 52 week high of $38.11. The company has a fifty day simple moving average of $20.76 and a two-hundred day simple moving average of $22.79. The company has a quick ratio of 1.52, a current ratio of 1.52 and a debt-to-equity ratio of 0.79. The company has a market cap of $4.44 billion, a price-to-earnings ratio of 21.85, a price-to-earnings-growth ratio of 0.50 and a beta of 0.31.

Amentum (NYSE:AMTM - Get Free Report) last announced its quarterly earnings data on Monday, August 10th. The company reported $0.67 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.61 by $0.06. The business had revenue of $3.49 billion for the quarter, compared to analysts' expectations of $3.57 billion. Amentum had a return on equity of 12.19% and a net margin of 1.44%.The company's revenue for the quarter was down 2.0% compared to the same quarter last year. During the same period last year, the firm earned $0.56 earnings per share. Amentum has set its FY 2026 guidance at 2.400-2.500 EPS. As a group, equities analysts anticipate that Amentum will post 2.38 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in AMTM. Western Wealth Management LLC purchased a new position in shares of Amentum during the first quarter worth about $33,000. NFSG Corp purchased a new stake in shares of Amentum in the 1st quarter valued at about $35,000. Global Retirement Partners LLC acquired a new stake in shares of Amentum in the 2nd quarter valued at about $31,000. Nykredit A S acquired a new stake in shares of Amentum in the 2nd quarter valued at about $37,000. Finally, Integrated Wealth Concepts LLC purchased a new position in Amentum during the 2nd quarter worth approximately $50,000. Hedge funds and other institutional investors own 39.93% of the company's stock.

About Amentum

Amentum NYSE: AMTM is a global engineering and technical services contractor that supports government and commercial customers across defense, intelligence, space, civilian, energy and environmental markets. The company provides mission-critical services designed to help customers operate, maintain and modernize complex systems and infrastructure.

Its capabilities include systems engineering, program management, logistics, operations and maintenance, cybersecurity, digital transformation, intelligence analysis, testing and evaluation, and environmental and nuclear lifecycle services.

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