Kestra Medical Technologies (NASDAQ:KMTS) Lowered to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Kestra Medical Technologies to “sell” from “hold,” although analyst sentiment remains mixed overall, with an average “hold” rating and average price target of $28.14.
• KMTS shares opened at $22.85, below the average analyst target, while the company reported a quarterly loss of $0.67 per share versus the $0.59 expected and analysts anticipate a full-year loss of about $2.29 per share.
• Insiders sold approximately $6.1 million of stock in the latest quarter, including sales by the CFO and another insider; several institutional investors, however, increased their positions.

Kestra Medical Technologies (NASDAQ:KMTS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued on Saturday, Wall Street Zen reports.

A number of other research firms have also issued reports on KMTS. Wolfe Research set a $30.00 target price on shares of Kestra Medical Technologies in a research note on Wednesday, July 15th. BTIG Research reaffirmed a "buy" rating and set a $32.00 price target on shares of Kestra Medical Technologies in a report on Wednesday, September 2nd. Weiss Ratings downgraded Kestra Medical Technologies from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Monday, August 31st. JPMorgan Chase & Co. began coverage on Kestra Medical Technologies in a report on Monday, August 10th. They issued an "overweight" rating and a $30.00 price objective for the company. Finally, Oppenheimer began coverage on Kestra Medical Technologies in a research report on Tuesday, July 21st. They issued a "market perform" rating on the stock. Four equities research analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, Kestra Medical Technologies has an average rating of "Hold" and an average price target of $28.14.

Kestra Medical Technologies Price Performance

Shares of NASDAQ KMTS opened at $22.85 on Friday. The company has a debt-to-equity ratio of 0.16, a current ratio of 4.41 and a quick ratio of 4.41. The firm has a market capitalization of $1.34 billion, a PE ratio of -9.44 and a beta of 0.62. Kestra Medical Technologies has a 1-year low of $17.34 and a 1-year high of $30.00. The business's fifty day moving average price is $25.34 and its two-hundred day moving average price is $22.71.

Kestra Medical Technologies (NASDAQ:KMTS - Get Free Report) last announced its quarterly earnings results on Tuesday, July 14th. The company reported ($0.67) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.59) by ($0.08). Kestra Medical Technologies had a negative net margin of 138.35% and a negative return on equity of 57.38%. The firm had revenue of $28.64 million for the quarter. On average, research analysts expect that Kestra Medical Technologies will post -2.29 EPS for the current year.

Insider Activity

In other news, CFO Vaseem Mahboob sold 26,287 shares of the company's stock in a transaction on Friday, August 7th. The stock was sold at an average price of $25.88, for a total value of $680,307.56. Following the completion of the sale, the chief financial officer owned 60,609 shares in the company, valued at $1,568,560.92. This represents a 30.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, insider Alfred J. Ford, Jr. sold 13,015 shares of the company's stock in a transaction on Monday, August 3rd. The shares were sold at an average price of $23.90, for a total value of $311,058.50. Following the completion of the sale, the insider owned 105,839 shares of the company's stock, valued at approximately $2,529,552.10. This trade represents a 10.95% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 254,588 shares of company stock worth $6,114,838 in the last quarter. 5.30% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kestra Medical Technologies

Several hedge funds and other institutional investors have recently bought and sold shares of KMTS. Russell Investments Group Ltd. boosted its position in shares of Kestra Medical Technologies by 43.5% during the 4th quarter. Russell Investments Group Ltd. now owns 1,563 shares of the company's stock valued at $41,000 after purchasing an additional 474 shares in the last quarter. Brown Brothers Harriman & Co. raised its holdings in shares of Kestra Medical Technologies by 26.8% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 3,104 shares of the company's stock worth $74,000 after purchasing an additional 656 shares in the last quarter. Rhumbline Advisers lifted its stake in Kestra Medical Technologies by 7.3% during the third quarter. Rhumbline Advisers now owns 12,925 shares of the company's stock valued at $307,000 after purchasing an additional 874 shares during the last quarter. Police & Firemen s Retirement System of New Jersey boosted its holdings in Kestra Medical Technologies by 34.6% during the fourth quarter. Police & Firemen s Retirement System of New Jersey now owns 5,420 shares of the company's stock worth $144,000 after buying an additional 1,392 shares in the last quarter. Finally, BNP Paribas Financial Markets boosted its holdings in Kestra Medical Technologies by 148.9% during the third quarter. BNP Paribas Financial Markets now owns 2,738 shares of the company's stock worth $65,000 after buying an additional 1,638 shares in the last quarter.

Kestra Medical Technologies News Summary

Here are the key news stories impacting Kestra Medical Technologies this week:

• Positive Sentiment: Kestra appointed Daniel Finney as Vice President of Research & Development and added him to its executive leadership team. Finney has more than 20 years of Class III medical-device experience and previously led Kestra’s new product development. He will oversee innovation for the Cardiac Recovery System, including strategic partnerships and artificial-intelligence initiatives, providing leadership continuity after the retirement of Phillip Foshee. Kestra Names Daniel Finney Vice President of Research & Development
• Neutral Sentiment: Reported short interest was zero shares as of September 10, unchanged from the prior reporting period. This suggests limited measurable short-selling pressure, but also provides little new information for investors.
• Neutral Sentiment: Analyst expectations remain mixed. BTIG maintains a $32 price target and JPMorgan has a $30 target, while other analysts are more cautious; the reported median target from recent forecasts is $24.50. The upcoming earnings release could prompt additional estimate changes. Kestra earnings preview
• Negative Sentiment: Four directors sold a combined 16,424 shares worth approximately $414,000. The transactions reduced their individual holdings by about 9% to 48%. Because the sales were made to cover tax withholding on vested equity awards, they are less concerning than discretionary selling, though the cluster may weigh on sentiment. SEC insider transaction filings
• Negative Sentiment: Kestra is expected to report a first-quarter loss, adding to concerns about profitability. Its latest reported quarter showed a $0.67 per-share loss, worse than the $0.59 consensus estimate, despite revenue of $28.64 million. Analysts currently forecast a full-year loss of approximately $2.29 per share.

About Kestra Medical Technologies

We are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S.

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