Karman (NYSE:KRMN) Stock Falls 10% - Time to Sell?

Key Points

• Karman shares fell 10% to about $35.58, with midday trading volume down 92% from its average; the stock’s 50-day moving average is $36.59, versus $63.56 for its 200-day average.
• Analysts’ consensus rating is “Moderate Buy”, with a $75.07 average price target, though some firms have cut targets and one maintains a sell rating.
• The company’s latest reported quarter showed EPS of $0.14, topping estimates, while revenue rose 58.2% year over year to $182.06 million. A director also bought 27,000 shares at an average price of $37.32.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report)'s stock price traded down 10% on Wednesday. The company traded as low as $36.80 and last traded at $35.5780. Approximately 213,062 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 2,817,359 shares. The stock had previously closed at $39.51.

Wall Street Analysts Forecast Growth

KRMN has been the topic of several research reports. Piper Sandler reduced their price objective on Karman from $91.00 to $59.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Barclays began coverage on Karman in a research report on Friday, October 9th. They set an "overweight" rating and a $79.00 target price for the company. BWS Financial reaffirmed a "sell" rating and set a $37.00 price target on shares of Karman in a research note on Monday, August 10th. UBS Group set a $40.00 price target on Karman in a report on Thursday, October 22nd. Finally, Needham & Company LLC dropped their price objective on Karman from $125.00 to $80.00 and set a "buy" rating for the company in a report on Friday, August 7th. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Moderate Buy" and a consensus price target of $75.07.

Karman Stock Down 16.5%

The firm's 50 day moving average price is $36.59 and its two-hundred day moving average price is $63.56. 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 company has a market capitalization of $4.37 billion, a P/E ratio of 114.08 and a beta of 0.45.

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

Insider Activity

In related news, Director David Stinnett purchased 27,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were bought at an average price of $37.32 per share, for a total transaction of $1,007,640.00. Following the completion of the transaction, the director owned 3,530,395 shares of the company's stock, valued at approximately $131,754,341.40. This trade represents a 0.77% increase in their ownership of the stock. The purchase was disclosed in a document filed with the SEC, which is available through this link. Company insiders own 5.77% of the company's stock.

Hedge Funds Weigh In On Karman

Several hedge funds and other institutional investors have recently modified their holdings of KRMN. Janney Montgomery Scott LLC increased its stake in Karman by 8.1% during the 1st quarter. Janney Montgomery Scott LLC now owns 3,949 shares of the company's stock valued at $316,000 after purchasing an additional 297 shares in the last quarter. SBI Securities Co. Ltd. grew its stake in Karman by 15.8% in the 3rd quarter. SBI Securities Co. Ltd. now owns 2,526 shares of the company's stock valued at $82,000 after purchasing an additional 345 shares during the period. Parkside Financial Bank & Trust boosted its stake 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 acquiring an additional 486 shares during the last quarter. CX Institutional purchased a new position in Karman in the second quarter valued at approximately $28,000. Finally, Hilltop National Bank lifted its holdings in Karman by 87.8% during the 2nd quarter. Hilltop National Bank now owns 1,258 shares of the company's stock worth $63,000 after purchasing an additional 588 shares in the last quarter.

About Karman

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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