Karman (NYSE:KRMN) Trading Down 9.2% - Here's What Happened

Key Points

• Karman Holdings (NYSE: KRMN) fell 9.2% on Monday, trading as low as $45.69 after closing at $50.01, with volume running well below average.
• Analyst opinions remain mixed, but the stock currently carries a Moderate Buy consensus and an average price target of $103.50, despite one recent sell rating from BWS Financial.
• The company recently beat quarterly earnings expectations, reporting $0.11 EPS versus $0.08 expected and revenue growth of 51% year over year, while institutional investors have also been adding to positions.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report) traded down 9.2% on Monday . The company traded as low as $45.69 and last traded at $45.4320. Approximately 707,921 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 2,458,514 shares. The stock had previously closed at $50.01.

Wall Street Analyst Weigh In

KRMN has been the topic of several research analyst reports. BWS Financial reissued a "sell" rating and set a $37.00 price target on shares of Karman in a research note on Monday, May 18th. Needham & Company LLC restated a "buy" rating and issued a $125.00 price objective on shares of Karman in a research report on Thursday, April 9th. Royal Bank Of Canada reaffirmed an "outperform" rating and set a $100.00 price objective on shares of Karman in a report on Tuesday, June 2nd. Evercore set a $100.00 price objective on Karman in a research report on Wednesday, May 13th. Finally, Truist Financial raised Karman to a "strong-buy" rating in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $103.50.

Karman Stock Down 9.5%

The company has a market cap of $6.00 billion, a P/E ratio of 197.40 and a beta of 0.51. The company has a current ratio of 3.53, a quick ratio of 3.38 and a debt-to-equity ratio of 2.08. The firm's 50 day moving average price is $55.56 and its 200-day moving average price is $78.75.

Karman (NYSE:KRMN - Get Free Report) last posted its quarterly earnings results on Tuesday, May 12th. The company reported $0.11 earnings per share for the quarter, topping analysts' consensus estimates of $0.08 by $0.03. Karman had a net margin of 5.73% and a return on equity of 14.94%. The business had revenue of $151.21 million during the quarter, compared to the consensus estimate of $150.19 million. During the same period in the previous year, the firm posted $0.05 earnings per share. Karman's revenue for the quarter was up 51.0% compared to the same quarter last year. As a group, equities research analysts expect that Karman Holdings Inc. will post 0.58 EPS for the current year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the stock. AustralianSuper Pty Ltd acquired a new position in Karman in the fourth quarter valued at about $33,679,000. UBS Group AG increased its holdings in shares of Karman by 103.7% in the fourth quarter. UBS Group AG now owns 926,976 shares of the company's stock worth $67,827,000 after acquiring an additional 471,894 shares in the last quarter. Congress Asset Management Co. acquired a new stake in shares of Karman during the fourth quarter worth about $24,212,000. Aubrey Capital Management Ltd acquired a new stake in shares of Karman during the fourth quarter worth about $3,687,000. Finally, Mass General Brigham Inc bought a new position in shares of Karman during the 4th quarter valued at 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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