Karman (NYSE:KRMN) Shares Up 7.5% - Still a Buy?

Key Points

• Karman shares jumped 7.5% to approximately $34.28, despite trading volume falling 57% below its average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $88.09, although several firms recently lowered their targets.
• The company reported strong quarterly growth: revenue rose 58.2% year over year to $182.06 million, while EPS of $0.14 exceeded estimates by $0.01. A director also purchased 27,000 shares worth about $1.01 million.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report) shares shot up 7.5% during trading on Friday. The company traded as high as $34.14 and last traded at $34.2750. 1,207,063 shares were traded during trading, a decline of 57% from the average daily volume of 2,806,275 shares. The stock had previously closed at $31.89.

Wall Street Analysts Forecast Growth

A number of research firms have recently weighed in on KRMN. Royal Bank Of Canada dropped their target price on Karman from $85.00 to $70.00 and set an "outperform" rating on the stock in a report on Monday. Citigroup increased their price target on Karman from $76.00 to $78.00 and gave the company a "buy" rating in a research report on Monday, August 10th. BWS Financial reaffirmed a "sell" rating and set a $37.00 price objective on shares of Karman in a report on Monday, August 10th. Weiss Ratings lowered shares of Karman from a "hold (c)" rating to a "hold (c-)" rating in a research note on Thursday, September 10th. Finally, Piper Sandler reissued 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 research analysts have rated the stock with a Strong Buy rating, eight have given a Buy rating, one has given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $88.09.

Karman Stock Performance

The firm has a market cap of $4.56 billion, a PE ratio of 118.61 and a beta of 0.65. 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 50-day simple moving average of $45.46 and a two-hundred day simple moving average of $58.72.

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

Insider Transactions at Karman

In related 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 price 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 of the company's stock, valued at approximately $131,754,341.40. This represents a 0.77% increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 5.77% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of KRMN. EverSource Wealth Advisors LLC lifted its stake in 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 purchasing an additional 347 shares during the last quarter. Parkside Financial Bank & Trust lifted its position in shares of Karman by 3,471.4% during the 2nd quarter. Parkside Financial Bank & Trust now owns 500 shares of the company's stock valued at $25,000 after buying an additional 486 shares during the last quarter. CX Institutional bought a new position in shares of Karman during the 2nd quarter worth $28,000. Tsfg LLC purchased a new stake in Karman in the 2nd quarter worth about $30,000. Finally, Wilkerson Advisory Group LLC bought a new stake in Karman in the 1st quarter valued at about $77,000.

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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