Karman (NYSE:KRMN) Trading Down 6.7% - What's Next?

Key Points

• Karman shares tumbled 6.7% to $60.95 on Tuesday, trading as low as $61.01 on volume of 878,219 shares, roughly 56% below its average daily volume.
• Analysts remain largely bullish with a consensus rating of "Moderate Buy" and a consensus target price of $117.10, driven by recent price-target raises from Evercore, Citigroup, Robert W. Baird and RBC.
• Fundamentals show rapid growth—revenue rose 47.5% YoY with last quarter revenue of $134.49M—yet valuation is stretched (market cap $8.33B, P/E ~483.6); several institutions have recently initiated or increased positions.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report) traded down 6.7% on Tuesday . The stock traded as low as $61.01 and last traded at $60.95. 878,219 shares traded hands during trading, a decline of 56% from the average session volume of 2,016,987 shares. The stock had previously closed at $65.32.

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. Truist Financial raised Karman to a "strong-buy" rating in a report on Friday. Evercore raised their price objective on Karman from $110.00 to $125.00 and gave the company an "outperform" rating in a report on Thursday, January 22nd. Citigroup raised their price objective on Karman from $125.00 to $127.00 and gave the company a "buy" rating in a report on Thursday, March 26th. Robert W. Baird raised their price objective on Karman from $115.00 to $135.00 and gave the company an "outperform" rating in a report on Friday, March 20th. Finally, Royal Bank Of Canada raised their price objective on Karman from $85.00 to $125.00 and gave the company an "outperform" rating in a report on Thursday, January 22nd. Two analysts have rated the stock with a Strong Buy rating, seven have given a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $117.10.

Karman Stock Performance

The stock has a market capitalization of $8.33 billion, a P/E ratio of 483.59 and a beta of 0.68. The company's 50-day moving average is $88.66 and its two-hundred day moving average is $84.24. The company has a current ratio of 3.29, a quick ratio of 3.17 and a debt-to-equity ratio of 1.50.

Karman (NYSE:KRMN - Get Free Report) last released its earnings results on Wednesday, March 25th. The company reported $0.11 EPS for the quarter, meeting the consensus estimate of $0.11. The firm had revenue of $134.49 million for the quarter. Karman had a net margin of 3.68% and a return on equity of 13.15%. Karman's revenue for the quarter was up 47.5% on a year-over-year basis. As a group, sell-side analysts anticipate that Karman Holdings Inc. will post 0.61 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in KRMN. Robert Wood Johnson Foundation bought a new stake in Karman in the 3rd quarter valued at $70,488,000. Congress Asset Management Co. acquired a new position in Karman during the 4th quarter worth about $24,212,000. Federated Hermes Inc. acquired a new position in Karman during the 3rd quarter worth about $2,055,000. TimesSquare Capital Management LLC lifted its position in Karman by 361.7% during the 3rd quarter. TimesSquare Capital Management LLC now owns 1,546,905 shares of the company's stock worth $111,687,000 after buying an additional 1,211,845 shares in the last quarter. Finally, Mass General Brigham Inc acquired a new position in Karman during the 4th quarter worth about $114,295,000.

About Karman

We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications.

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