Kestra Medical Technologies (NASDAQ:KMTS) Shares Climb 9.8% - Still a Buy?

Key Points

• Kestra Medical Technologies shares jumped 9.8% to about $27.97, although trading volume was 67% below its average session volume.
• Analyst sentiment is mixed: the stock has a consensus “Hold” rating and an average price target of $28.38, with four Buys, two Holds, and one Sell.
• The company reported a quarterly EPS loss of $0.75, missing estimates by $0.14, while insiders have sold approximately $6.0 million of stock over the past 90 days.

Kestra Medical Technologies, Ltd. (NASDAQ:KMTS - Get Free Report)'s stock price shot up 9.8% during mid-day trading on Thursday. The stock traded as high as $27.76 and last traded at $27.9690. 112,802 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 341,014 shares. The stock had previously closed at $25.47.

Analysts Set New Price Targets

KMTS has been the subject of several research analyst reports. Oppenheimer began coverage on Kestra Medical Technologies in a research note on Tuesday, July 21st. They set a "market perform" rating for the company. Piper Sandler reaffirmed an "overweight" rating on shares of Kestra Medical Technologies in a report on Tuesday, September 15th. Royal Bank Of Canada set a $30.00 target price on shares of Kestra Medical Technologies in a report on Tuesday, September 15th. Wolfe Research set a $30.00 price target on Kestra Medical Technologies in a research note on Wednesday, July 15th. Finally, Wall Street Zen cut shares of Kestra Medical Technologies from a "hold" rating to a "sell" rating in a research note on Saturday, September 12th. Four research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Kestra Medical Technologies presently has a consensus rating of "Hold" and an average price target of $28.38.

Kestra Medical Technologies Price Performance

The business has a 50 day simple moving average of $26.30 and a 200-day simple moving average of $23.43. The company has a quick ratio of 4.69, a current ratio of 4.69 and a debt-to-equity ratio of 0.33. The company has a market capitalization of $1.70 billion, a P/E ratio of -10.54 and a beta of 0.51.

Kestra Medical Technologies (NASDAQ:KMTS - Get Free Report) last posted its quarterly earnings data on Monday, September 14th. The company reported ($0.75) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.61) by ($0.14). Kestra Medical Technologies had a negative net margin of 140.43% and a negative return on equity of 63.83%. The company had revenue of $30.97 million during the quarter. Analysts predict that Kestra Medical Technologies, Ltd. will post -2.45 EPS for the current fiscal year.

Insider Buying and Selling

In related news, Director Jeffrey Schwartz sold 3,890 shares of the company's stock in a transaction on Tuesday, September 8th. The stock was sold at an average price of $25.18, for a total value of $97,950.20. Following the completion of the transaction, the director directly owned 7,019 shares in the company, valued at approximately $176,738.42. This represents a 35.66% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Raymond W. Cohen sold 3,330 shares of the firm's stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $29.28, for a total value of $97,502.40. Following the transaction, the director owned 54,790 shares of the company's stock, valued at $1,604,251.20. This trade represents a 5.73% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last ninety days, insiders have sold 246,928 shares of company stock valued at $5,997,473. 5.30% of the stock is owned by corporate insiders.

Institutional Trading of Kestra Medical Technologies

Several hedge funds have recently modified their holdings of the stock. The Manufacturers Life Insurance Company grew its holdings in Kestra Medical Technologies by 6.6% during the first quarter. The Manufacturers Life Insurance Company now owns 92,515 shares of the company's stock valued at $1,844,000 after purchasing an additional 5,731 shares during the period. California State Teachers Retirement System lifted its holdings in shares of Kestra Medical Technologies by 39.2% during the first quarter. California State Teachers Retirement System now owns 27,835 shares of the company's stock worth $555,000 after buying an additional 7,844 shares in the last quarter. Quantinno Capital Management LP acquired a new stake in shares of Kestra Medical Technologies in the first quarter valued at approximately $431,000. Bank of New York Mellon Corp raised its stake in Kestra Medical Technologies by 47.2% in the first quarter. Bank of New York Mellon Corp now owns 70,113 shares of the company's stock valued at $1,397,000 after purchasing an additional 22,471 shares in the last quarter. Finally, Spartan Wealth Advisory Services LLC acquired a new stake in shares of Kestra Medical Technologies in the 1st quarter valued at $603,000.

Kestra Medical Technologies Company Profile

Kestra Medical Technologies, Inc is a medical device company focused on developing and commercializing technologies designed to help protect patients at risk of sudden cardiac arrest. The company's primary product is the ASSURE wearable cardioverter defibrillator, or WCD, which is intended to provide temporary protection for patients who may be at elevated risk of life-threatening ventricular arrhythmias.

The ASSURE system continuously monitors a patient's heart rhythm and is designed to detect potentially dangerous arrhythmias, including ventricular tachycardia and ventricular fibrillation.

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