Karman (NYSE:KRMN) Stock Price Up 9.2% - Should You Buy?

Key Points

• Karman shares jumped 9.2% to about $41.48, though trading volume was 43% below the stock’s average daily volume.
• Analyst views remain broadly positive but vary widely: Karman has a consensus “Moderate Buy” rating and an average price target of $77.57, ranging from a $37 sell target to a $118 buy target.
• The company reported strong operating growth, with quarterly revenue rising 58.2% year over year to $182.06 million and EPS of $0.14 exceeding estimates; a director also purchased roughly $1.01 million in shares.

Shares of Karman Holdings Inc. (NYSE:KRMN - Get Free Report) rose 9.2% on Thursday. The company traded as high as $41.70 and last traded at $41.4840. Approximately 1,609,343 shares were traded during trading, a decline of 43% from the average daily volume of 2,831,442 shares. The stock had previously closed at $37.98.

Analysts Set New Price Targets

A number of research firms have recently issued reports on KRMN. 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. BWS Financial reissued a "sell" rating and issued a $37.00 price target on shares of Karman in a research note on Monday, August 10th. Truist Financial decreased their target price on shares of Karman from $118.00 to $85.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. UBS Group set a $40.00 price objective on shares of Karman in a research report on Thursday, October 22nd. Finally, Piper Sandler lowered their target price on shares of Karman from $91.00 to $59.00 and set an "overweight" rating on the stock in a report on Friday, October 23rd. Two investment 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 given a Sell rating to the company's stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $77.57.

Karman Stock Performance

The stock's fifty day simple moving average is $37.74 and its 200 day simple moving average is $64.91. 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 cap of $5.50 billion, a price-to-earnings ratio of 143.07 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 (EPS) for the quarter, beating 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 firm had revenue of $182.06 million for the quarter. During the same quarter in the prior year, the firm posted $0.10 EPS. Karman's quarterly revenue was up 58.2% compared to the same quarter last year. As a group, analysts anticipate that Karman Holdings Inc. will post 0.59 earnings per share for the current year.

Insider Buying and Selling at Karman

In other Karman news, Director David Stinnett acquired 27,000 shares of the stock in a transaction that occurred on Wednesday, September 16th. The shares were purchased at an average cost of $37.32 per share, with a total value of $1,007,640.00. Following the purchase, the director 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 purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. 5.77% of the stock is currently owned by corporate insiders.

Institutional Trading of Karman

A number of institutional investors and hedge funds have recently made changes to their positions in the company. Rokos Capital Management LLP bought a new stake in shares of Karman during the 1st quarter worth $35,261,000. Wellington Management Group LLP bought a new position in Karman in the 2nd quarter valued at $16,086,000. Ranger Investment Management L.P. bought a new position in Karman in the 2nd quarter valued at $13,902,000. Bank of America Corp DE lifted its stake in shares of Karman by 123.8% in the 1st quarter. Bank of America Corp DE now owns 459,531 shares of the company's stock valued at $36,785,000 after purchasing an additional 254,161 shares during the period. Finally, Congress Asset Management Co. grew its holdings in Karman by 23.8% during the third quarter. Congress Asset Management Co. now owns 1,068,811 shares of the company's stock valued at $34,651,000 after purchasing an additional 205,503 shares during the period.

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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