Telos (NASDAQ:TLS) Raised to "Strong-Buy" at Zacks Research

Key Points

• Zacks Research upgraded Telos to “strong buy” from “hold.” Despite mixed analyst views, Telos has a consensus “Moderate Buy” rating and an average price target of $7.10.
• Telos exceeded quarterly expectations, reporting earnings of $0.04 per share versus the $0.02 estimate and revenue of $47.75 million versus the $45.16 million consensus.
• The stock opened at $4.50, with a market capitalization of about $336 million and a 52-week range of $3.79 to $8.36. Insiders sold 331,772 shares worth approximately $1.43 million over the past three months.

Telos (NASDAQ:TLS - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research report issued on Thursday,Zacks.com reports.

A number of other research analysts also recently commented on TLS. Weiss Ratings downgraded Telos from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, August 11th. Needham & Company LLC started coverage on Telos in a report on Tuesday, May 26th. They issued a "buy" rating and a $6.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, Telos currently has a consensus rating of "Moderate Buy" and an average target price of $7.10.

Telos Price Performance

TLS opened at $4.50 on Thursday. The company has a market capitalization of $336.33 million, a P/E ratio of -21.43 and a beta of 1.00. The company has a 50-day moving average of $4.57 and a 200-day moving average of $4.46. The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.26 and a current ratio of 2.38. Telos has a 1-year low of $3.79 and a 1-year high of $8.36.

Telos (NASDAQ:TLS - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported $0.04 EPS for the quarter, topping the consensus estimate of $0.02 by $0.02. The business had revenue of $47.75 million for the quarter, compared to analysts' expectations of $45.16 million. Telos had a negative net margin of 8.13% and a negative return on equity of 2.60%. Equities analysts expect that Telos will post -0.05 EPS for the current fiscal year.

Insider Activity

In related news, EVP Gary Mark Bendza sold 97,976 shares of the business's stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $4.19, for a total transaction of $410,519.44. Following the completion of the sale, the executive vice president owned 817,148 shares of the company's stock, valued at $3,423,850.12. This represents a 10.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Derrick D. Dockery sold 11,000 shares of the stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $4.34, for a total transaction of $47,740.00. Following the sale, the director owned 168,591 shares in the company, valued at approximately $731,684.94. This trade represents a 6.13% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders sold 331,772 shares of company stock valued at $1,434,228. Company insiders own 14.90% of the company's stock.

Institutional Trading of Telos

Institutional investors and hedge funds have recently made changes to their positions in the stock. Covestor Ltd acquired a new position in Telos during the 4th quarter valued at approximately $29,000. CWM LLC increased its position in Telos by 156.2% in the fourth quarter. CWM LLC now owns 7,448 shares of the company's stock worth $38,000 after buying an additional 4,541 shares during the period. Quarry LP acquired a new stake in Telos in the fourth quarter worth $39,000. AQR Capital Management LLC bought a new stake in Telos in the first quarter valued at $39,000. Finally, Pinnacle Wealth Management Advisory Group LLC bought a new stake in Telos in the first quarter valued at $43,000. 62.14% of the stock is currently owned by institutional investors and hedge funds.

About Telos

Telos Corporation NASDAQ: TLS is a provider of cybersecurity, secure communications, and enterprise IT solutions designed to help organizations manage risk, accelerate mission delivery and maintain compliance. The company's core business activities encompass risk management and compliance automation, secure mobility, zero-trust architecture, cloud security, and identity and access management. Telos serves a diverse customer base that includes U.S. federal agencies, the Department of Defense, intelligence communities and select commercial enterprises.

Among its flagship offerings is the Xacta® platform, which automates assessment and authorization for IT systems and cloud environments, helping clients streamline compliance with NIST, FedRAMP and other frameworks.

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