Karman Sees Unusually Large Options Volume (NYSE:KRMN)

Key Points

• Karman saw unusually heavy bearish options activity: Investors purchased 17,871 put options, 1,781% above the average daily volume of 950 puts.
• The stock fell 5.0% to $30.28, near its 12-month low of $29.86, while trading well below its 50-day and 200-day moving averages.
• Analyst sentiment remains moderately bullish despite lowered targets: The stock has a consensus “Moderate Buy” rating and an average price target of $87.33, while director David Stinnett purchased 27,000 shares worth about $1.01 million.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report) saw unusually large options trading activity on Tuesday. Investors purchased 17,871 put options on the stock. This represents an increase of 1,781% compared to the average daily volume of 950 put options.

Insider Buying and Selling

In other news, Director David Stinnett bought 27,000 shares of Karman stock in a transaction that occurred on Wednesday, September 16th. The shares were acquired at an average price of $37.32 per share, with a total value of $1,007,640.00. Following the completion of the purchase, the director directly owned 3,530,395 shares in the company, valued at $131,754,341.40. The trade was a 0.77% increase in their ownership of the stock. The purchase was disclosed in a filing with the SEC, which is available through this hyperlink. 5.77% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Karman

Institutional investors and hedge funds have recently modified their holdings of the stock. GK Wealth Management LLC purchased a new stake in Karman in the third quarter worth $65,000. Legacy Wealth Asset Management LLC increased its holdings in shares of Karman by 83.8% in the 3rd quarter. Legacy Wealth Asset Management LLC now owns 7,374 shares of the company's stock worth $239,000 after purchasing an additional 3,361 shares in the last quarter. Congress Asset Management Co. raised its position in Karman by 23.8% in the 3rd quarter. Congress Asset Management Co. now owns 1,068,811 shares of the company's stock worth $34,651,000 after buying an additional 205,503 shares during the last quarter. Moody National Bank Trust Division bought a new position in Karman during the third quarter valued at approximately $537,000. Finally, HBK Investments L P purchased a new position in shares of Karman in the 2nd quarter worth $998,000.

Karman Trading Down 5.0%

Karman stock traded down $1.60 during trading hours on Tuesday, reaching $30.28. The company had a trading volume of 1,683,346 shares, compared to its average volume of 2,800,814. The company has a debt-to-equity ratio of 2.01, a current ratio of 3.56 and a quick ratio of 3.40. Karman has a 12-month low of $29.86 and a 12-month high of $118.38. The company has a 50-day moving average price of $43.24 and a 200 day moving average price of $55.26. The firm has a market cap of $4.01 billion, a price-to-earnings ratio of 104.14 and a beta of 0.64.

Karman (NYSE:KRMN - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.13 by $0.01. The company had revenue of $182.06 million for the quarter. Karman had a net margin of 6.31% and a return on equity of 15.54%. The firm's quarterly revenue was up 58.2% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.10 earnings per share. Equities analysts forecast that Karman will post 0.59 earnings per share for the current year.

Wall Street Analysts Forecast Growth

Several equities analysts have recently commented on the company. Needham & Company LLC reduced their price objective on Karman from $125.00 to $80.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Barclays began coverage on Karman in a research report on Friday. They issued an "overweight" rating and a $79.00 target price for the company. BWS Financial reaffirmed a "sell" rating and issued a $37.00 target price on shares of Karman in a research note on Monday, August 10th. Truist Financial cut their target price on Karman from $118.00 to $85.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Finally, Piper Sandler reiterated an "overweight" rating and set a $91.00 price target (down from $114.00) on shares of Karman in a research report on Friday, August 7th. Two analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $87.33.

About Karman

Karman NYSE: KRMN, through its subsidiaries, provides engineered components and manufacturing services for the aerospace and defense industries. The company focuses on mission-critical products used in space launch vehicles, missile systems, hypersonic platforms and other high-performance aerospace applications.

Its capabilities include the design and production of composite and metallic structures, precision-machined components, complex assemblies, thermal protection products and other specialized hardware.

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