Karman (NYSE:KRMN) Stock Falls 6.3% on Analyst Downgrade

Key Points

• Karman shares fell 6.3% to approximately $33.44 after Royal Bank of Canada cut its price target from $85 to $70, while maintaining an “outperform” rating.
• Analyst sentiment remains broadly positive, with the stock carrying a “Moderate Buy” consensus rating and an average target price of $88.09, despite multiple recent target reductions.
• Director David Stinnett purchased 27,000 shares worth about $1.01 million, while recent quarterly revenue rose 58.2% year over year to $182.06 million and earnings exceeded estimates.

Karman Holdings Inc. (NYSE:KRMN - Get Free Report)'s share price fell 6.3% on Monday after Royal Bank Of Canada lowered their price target on the stock from $85.00 to $70.00. Royal Bank Of Canada currently has an outperform rating on the stock. Karman traded as low as $33.52 and last traded at $33.4360. Approximately 1,101,040 shares traded hands during mid-day trading, a decline of 61% from the average session volume of 2,800,964 shares. The stock had previously closed at $35.69.

Several other brokerages have also issued reports on KRMN. Piper Sandler reiterated an "overweight" rating and issued a $91.00 target price (down from $114.00) on shares of Karman in a research report on Friday, August 7th. Truist Financial lowered their price target on Karman from $118.00 to $85.00 and set a "buy" rating on the stock in a research report on Thursday, August 13th. Citigroup upped their price objective on Karman from $76.00 to $78.00 and gave the stock a "buy" rating in a report on Monday, August 10th. Needham & Company LLC reduced their price objective on Karman from $125.00 to $80.00 and set a "buy" rating on the stock in a research report on Friday, August 7th. Finally, Guggenheim assumed coverage on Karman in a report on Monday, September 14th. They set a "buy" rating and a $63.00 price objective on the stock. Two investment analysts have rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and a consensus target price of $88.09.

Insiders Place Their Bets

In other news, Director David Stinnett bought 27,000 shares of the firm's stock in a transaction that occurred on Wednesday, September 16th. The shares were bought at an average cost of $37.32 per share, with a total value of $1,007,640.00. Following the completion of the purchase, the director directly 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 purchase was disclosed in a filing with the SEC, which is available at this link. 5.77% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Karman

A number of large investors have recently added to or reduced their stakes in KRMN. Grandeur Peak Global Advisors LLC raised its holdings in shares of Karman by 98.4% during the second quarter. Grandeur Peak Global Advisors LLC now owns 59,025 shares of the company's stock valued at $2,947,000 after acquiring an additional 29,281 shares in the last quarter. Wellington Management Group LLP bought a new stake in Karman in the second quarter valued at $16,086,000. Dimensional Fund Advisors LP increased its position in Karman by 81.1% during the 1st quarter. Dimensional Fund Advisors LP now owns 47,381 shares of the company's stock valued at $3,793,000 after purchasing an additional 21,224 shares during the period. Freemont Management S.A. purchased a new position in Karman during the 1st quarter valued at $2,177,000. Finally, Readystate Asset Management LP bought a new position in Karman in the 2nd quarter worth $5,675,000.

Karman Stock Down 6.3%

The company's fifty day simple moving average is $46.61 and its 200 day simple moving average is $60.66. 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 $4.43 billion, a P/E ratio of 115.54 and a beta of 0.47.

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, beating 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 for the quarter. During the same period in the previous year, the firm posted $0.10 EPS. The company's revenue for the quarter was up 58.2% on a year-over-year basis. Research analysts expect that Karman Holdings Inc. will post 0.59 EPS for the current year.

About Karman

Karman is an aerospace and defense company that develops and manufactures mission-critical components, structures and systems for space and defense applications. Its offerings support launch vehicles, satellites, hypersonic systems and other advanced aerospace platforms.

The company provides capabilities across engineered metallic and composite structures, precision components, propulsion-related products and other specialized assemblies. Karman serves government and commercial aerospace customers involved in space launch, national security and defense programs.

Operating through a portfolio of aerospace and defense businesses, Karman combines design, engineering and manufacturing capabilities for complex, high-performance applications.

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