Karman (NYSE:KRMN) Sets New 1-Year Low - Should You Sell?

Key Points

• Karman shares fell to a new 52-week low of $31.24, well below their 50-day and 200-day moving averages of $44.51 and $57.25, respectively.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and average price target of $88.09, although several firms recently lowered their targets; BWS Financial maintained a “Sell” rating with a $37 target.
• The company’s latest quarter showed 58.2% year-over-year revenue growth and earnings of $0.14 per share, beating expectations, while director David Stinnett purchased approximately $1.0 million of Karman stock.

Shares of Karman Holdings Inc. (NYSE:KRMN - Get Free Report) hit a new 52-week low during mid-day trading on Wednesday. The company traded as low as $31.24 and last traded at $31.1480, with a volume of 736234 shares changing hands. The stock had previously closed at $33.29.

Analysts Set New Price Targets

A number of research firms have recently weighed in on KRMN. Truist Financial cut their price target on Karman from $118.00 to $85.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. Guggenheim initiated coverage on Karman in a report on Monday, September 14th. They issued a "buy" rating and a $63.00 price objective for the company. Piper Sandler reissued an "overweight" rating and issued a $91.00 target price (down from $114.00) on shares of Karman in a research note on Friday, August 7th. Citigroup raised their target price on Karman from $76.00 to $78.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Finally, BWS Financial reaffirmed a "sell" rating and issued a $37.00 price target on shares of Karman in a research note on Monday, August 10th. Two equities research analysts have rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average price target of $88.09.

Karman Price Performance

The company's fifty day moving average price is $44.51 and its two-hundred day moving average price is $57.25. The company has a quick ratio of 3.40, a current ratio of 3.56 and a debt-to-equity ratio of 2.01. The company has a market cap of $4.14 billion, a price-to-earnings ratio of 108.01 and a beta of 0.64.

Karman (NYSE:KRMN - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported $0.14 earnings per share 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. During the same period in the previous year, the company posted $0.10 earnings per share. Karman's revenue for the quarter was up 58.2% on a year-over-year basis. On average, equities research analysts forecast that Karman Holdings Inc. will post 0.59 EPS for the current fiscal year.

Insider Activity

In other news, Director David Stinnett acquired 27,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The stock was acquired at an average cost of $37.32 per share, for a total transaction of $1,007,640.00. Following the completion of the acquisition, the director owned 3,530,395 shares in the company, valued at $131,754,341.40. This represents a 0.77% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Insiders own 5.77% of the company's stock.

Institutional Trading of Karman

A number of hedge funds and other institutional investors have recently made changes to their positions in KRMN. First Trust Advisors LP grew its position in Karman by 3.3% in the first quarter. First Trust Advisors LP now owns 2,891,687 shares of the company's stock valued at $231,480,000 after purchasing an additional 93,565 shares in the last quarter. Van ECK Associates Corp lifted its position in Karman by 125.3% during the 4th quarter. Van ECK Associates Corp now owns 2,867,379 shares of the company's stock worth $209,806,000 after buying an additional 1,594,518 shares in the last quarter. Falcon Wealth Planning acquired a new position in shares of Karman during the 1st quarter worth about $205,684,000. Congress Asset Management Co. grew its holdings in shares of Karman by 23.8% in the 3rd quarter. Congress Asset Management Co. now owns 1,068,811 shares of the company's stock valued at $34,651,000 after acquiring an additional 205,503 shares in the last quarter. Finally, Amundi increased its position in shares of Karman by 44.6% in the first quarter. Amundi now owns 512,231 shares of the company's stock valued at $41,004,000 after acquiring an additional 158,068 shares during the last quarter.

Karman Company Profile

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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