Innovative Solutions and Support (NASDAQ:ISSC) Trading Up 7.5% - Still a Buy?

Key Points

• Shares jumped 7.5% to about $28.16 on Monday with volume ~648,581 (16% above average), even though MarketBeat's analyst consensus lists an average target price of $16.25 while ratings lean toward "Strong Buy" (four Strong Buy, two Buy).
• The company reported a meaningful beat for the quarter—EPS $0.25 vs. $0.10 expected and revenue $21.81M vs. $18.82M—with a net margin of 21.02% and ROE of 30.44%.
• Fundamentals show a market cap of ~$513.8M, P/E of 27.46, a healthy liquidity profile (current ratio 2.96, quick ratio 1.53) and low leverage (debt/equity 0.31), with institutional investors owning about 28.5% of the stock.

Innovative Solutions and Support, Inc. (NASDAQ:ISSC - Get Free Report)'s stock price rose 7.5% on Monday . The company traded as high as $28.41 and last traded at $28.16. Approximately 648,581 shares traded hands during trading, an increase of 16% from the average daily volume of 556,888 shares. The stock had previously closed at $26.19.

Analysts Set New Price Targets

ISSC has been the topic of a number of recent research reports. Zacks Research upgraded shares of Innovative Solutions and Support from a "hold" rating to a "strong-buy" rating in a research note on Wednesday, December 24th. Craig Hallum started coverage on shares of Innovative Solutions and Support in a report on Friday, December 5th. They set a "buy" rating and a $16.00 target price on the stock. Northland Securities began coverage on Innovative Solutions and Support in a report on Friday, November 21st. They issued an "outperform" rating and a $16.50 price target for the company. JonesTrading upgraded Innovative Solutions and Support to a "strong-buy" rating in a research note on Monday, January 5th. Finally, Weiss Ratings upgraded Innovative Solutions and Support from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, February 23rd. Four investment analysts have rated the stock with a Strong Buy rating and two have given a Buy rating to the stock. According to data from MarketBeat, the company has an average rating of "Strong Buy" and an average target price of $16.25.

Innovative Solutions and Support Stock Performance

The stock has a market capitalization of $513.75 million, a P/E ratio of 27.46 and a beta of 0.57. The company's fifty day simple moving average is $21.50 and its 200 day simple moving average is $14.99. The company has a current ratio of 2.96, a quick ratio of 1.53 and a debt-to-equity ratio of 0.31.

Innovative Solutions and Support (NASDAQ:ISSC - Get Free Report) last issued its quarterly earnings data on Thursday, February 12th. The aerospace company reported $0.25 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.10 by $0.15. The company had revenue of $21.81 million for the quarter, compared to the consensus estimate of $18.82 million. Innovative Solutions and Support had a return on equity of 30.44% and a net margin of 21.02%.

Institutional Trading of Innovative Solutions and Support

A number of hedge funds have recently made changes to their positions in ISSC. Geode Capital Management LLC grew its position in Innovative Solutions and Support by 0.6% in the second quarter. Geode Capital Management LLC now owns 123,258 shares of the aerospace company's stock worth $1,711,000 after acquiring an additional 725 shares in the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Innovative Solutions and Support by 7,484.2% in the 4th quarter. Caitong International Asset Management Co. Ltd now owns 1,441 shares of the aerospace company's stock worth $27,000 after purchasing an additional 1,422 shares in the last quarter. Gamco Investors INC. ET AL boosted its holdings in shares of Innovative Solutions and Support by 1.2% in the 3rd quarter. Gamco Investors INC. ET AL now owns 128,500 shares of the aerospace company's stock worth $1,605,000 after purchasing an additional 1,500 shares in the last quarter. Meixler Investment Management Ltd. increased its position in shares of Innovative Solutions and Support by 10.1% during the 3rd quarter. Meixler Investment Management Ltd. now owns 16,825 shares of the aerospace company's stock valued at $210,000 after purchasing an additional 1,550 shares during the last quarter. Finally, Integrated Quantitative Investments LLC increased its position in shares of Innovative Solutions and Support by 9.4% during the 4th quarter. Integrated Quantitative Investments LLC now owns 18,193 shares of the aerospace company's stock valued at $345,000 after purchasing an additional 1,556 shares during the last quarter. 28.53% of the stock is owned by institutional investors.

About Innovative Solutions and Support

Innovative Solutions and Support, Inc NASDAQ: ISSC is a provider of technology solutions and mission support services to U.S. federal government agencies, with a focus on defense, intelligence, and national security programs. The company delivers integrated program management, systems engineering, and advanced IT infrastructure support designed to enhance operational readiness and maintain secure, scalable environments for mission-critical operations.

Its core service offerings include systems integration, custom software development, data analytics, cybersecurity, and logistics management.

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