Karman (NYSE:KRMN) Stock Breaks Above 50-Day Moving Average After Analyst Downgrade

Key Points

• Karman shares rose above their 50-day moving average of $37.74, reaching $38.03 and last trading near $37.95 after Weiss Ratings revised its rating from “hold (c-)” to “hold (c).”
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $77.57, despite several firms recently lowering their targets.
• Director David Stinnett bought 27,000 shares for approximately $1.01 million, while Karman reported 58.2% year-over-year revenue growth and quarterly earnings of $0.14 per share, ahead of estimates.

Shares of Karman Holdings Inc. (NYSE:KRMN - Get Free Report) crossed above its fifty day moving average during trading on Wednesday after Weiss Ratings upgraded the stock from a hold (c-) rating to a hold (c) rating. The stock has a fifty day moving average of $37.74 and traded as high as $38.03. Karman shares last traded at $37.9480, with a volume of 2,093,427 shares traded.

KRMN has been the topic of a number of other reports. Royal Bank Of Canada cut their price target on Karman from $85.00 to $70.00 and set an "outperform" rating on the stock in a research note on Monday, September 28th. Piper Sandler reaffirmed an "overweight" rating and set a $91.00 price objective (down from $114.00) on shares of Karman in a research report on Friday, August 7th. Citigroup increased their price objective on Karman from $76.00 to $78.00 and gave the company a "buy" rating in a report on Monday, August 10th. Barclays assumed coverage on Karman in a research note on Thursday, October 8th. They set an "overweight" rating and a $79.00 target price for the company. Finally, Needham & Company LLC lowered their price target on Karman from $125.00 to $80.00 and set a "buy" rating for the company in a report on Friday, August 7th. Two research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $77.57.

Insiders Place Their Bets

In related news, Director David Stinnett purchased 27,000 shares of Karman stock in a transaction that occurred on Wednesday, September 16th. The stock was purchased at an average cost of $37.32 per share, with a total value of $1,007,640.00. Following the completion of the transaction, the director directly owned 3,530,395 shares in the company, valued at approximately $131,754,341.40. The trade was a 0.77% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.77% of the stock is currently owned by company insiders.

Institutional Trading of Karman

Hedge funds and other institutional investors have recently made changes to their positions in the company. Parkside Financial Bank & Trust boosted its position in shares of Karman by 3,471.4% in the 2nd 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. CX Institutional purchased a new position in Karman during the 2nd quarter worth approximately $28,000. Tsfg LLC purchased a new position in Karman during the 2nd quarter worth approximately $30,000. Wilkerson Advisory Group LLC acquired a new position in Karman during the first quarter worth approximately $77,000. Finally, Pinnacle Wealth Planning Services Inc. acquired a new position in Karman during the third quarter worth approximately $32,000.

Karman Stock Performance

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 firm has a 50-day simple moving average of $37.74 and a 200 day simple moving average of $64.91. The company has a market cap of $5.03 billion, a price-to-earnings ratio of 130.86 and a beta of 0.64.

Karman (NYSE:KRMN - Get Free Report) last posted its quarterly earnings data on Thursday, August 6th. The company reported $0.14 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.01. The business 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%. Karman's revenue was up 58.2% compared to the same quarter last year. During the same period in the previous year, the company posted $0.10 earnings per share. On average, sell-side analysts predict that Karman Holdings Inc. will post 0.59 earnings per share for the current fiscal year.

Karman Company Profile

Karman Holdings Corp., doing business as Karman Space & Defense, is an aerospace and defense company that develops and manufactures mission-critical components, assemblies and structures. Its products are used in space-launch vehicles, missiles, hypersonic systems and other defense applications where performance, reliability and precision are essential.

The company's capabilities include the production of composite and metallic structures, propulsion-related components, precision-machined parts and other highly engineered hardware.

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