Karman (NYSE:KRMN) Hits New 1-Year Low - Here's Why

Key Points

• Karman shares fell 7.2% to a new 52-week low, trading as low as $38.18 and most recently at $37.44. The stock remains well below its 50-day and 200-day moving averages of $50.57 and $65.75, respectively.
• Analysts have recently lowered several price targets, including Needham’s cut to $80 and RBC’s to $85, although the consensus remains a “Moderate Buy” with an average target of $92.10. Ratings include one Strong Buy, eight Buys, one Hold and one Sell.
• Karman reported quarterly EPS of $0.14, exceeding estimates of $0.13, while revenue rose 58.2% year over year to $182.06 million. Despite the growth, the company trades at a high price-to-earnings ratio of 126.76.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report)'s share price reached a new 52-week low during mid-day trading on Wednesday . The stock traded as low as $38.18 and last traded at $37.44, with a volume of 140425 shares. The stock had previously closed at $39.69.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on KRMN. Royal Bank Of Canada cut their price objective on shares of Karman from $100.00 to $85.00 and set an "outperform" rating for the company in a research report on Friday, July 24th. Needham & Company LLC lowered their target price on shares of Karman from $125.00 to $80.00 and set a "buy" rating for the company in a research note on Friday, August 7th. KeyCorp decreased their price objective on Karman from $122.00 to $100.00 and set an "overweight" rating on the stock in a report on Wednesday, May 20th. Citigroup lifted their price objective on Karman from $76.00 to $78.00 and gave the company a "buy" rating in a research report on Monday, August 10th. Finally, BWS Financial reiterated a "sell" rating and set a $37.00 target price on shares of Karman in a research report on Monday, August 10th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $92.10.

Karman Stock Down 7.2%

The company has a current ratio of 3.56, a quick ratio of 3.40 and a debt-to-equity ratio of 2.01. The firm has a market capitalization of $4.88 billion, a price-to-earnings ratio of 126.76 and a beta of 0.47. The firm has a 50 day moving average price of $50.57 and a two-hundred day moving average price of $65.75.

Karman (NYSE:KRMN - Get Free Report) last posted its earnings results on Thursday, August 6th. The company reported $0.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.01. Karman had a net margin of 6.31% and a return on equity of 15.54%. The firm had revenue of $182.06 million during the quarter. The firm's revenue for the quarter was up 58.2% compared to the same quarter last year. During the same period last year, the company posted $0.10 EPS. On average, equities analysts expect that Karman Holdings Inc. will post 0.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Karman

Hedge funds have recently made changes to their positions in the business. Parkside Financial Bank & Trust raised its position in Karman by 3,471.4% in the second quarter. Parkside Financial Bank & Trust now owns 500 shares of the company's stock valued at $25,000 after purchasing an additional 486 shares during the period. EverSource Wealth Advisors LLC grew its stake in shares of Karman by 889.7% in the fourth quarter. EverSource Wealth Advisors LLC now owns 386 shares of the company's stock valued at $28,000 after buying an additional 347 shares in the last quarter. CX Institutional purchased a new stake in shares of Karman during the 2nd quarter valued at about $28,000. Towarzystwo Funduszy Inwestycyjnych PZU SA acquired a new position in Karman during the 3rd quarter worth approximately $29,000. Finally, Tsfg LLC purchased a new position in Karman in the 2nd quarter worth approximately $30,000.

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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