Telos (NASDAQ:TLS) Trading Down 3.9% - Here's Why

Key Points

• Telos shares fell 3.9% to $4.42 in mid-day trading, with volume 29% above the average session level.
• Analyst sentiment remains mixed: Needham initiated coverage with a Buy rating and a $6.00 target, while the overall consensus is Hold with a $7.10 average target price.
• The company exceeded quarterly earnings and revenue estimates, but remains unprofitable, while insiders sold approximately 320,772 shares worth $1.39 million over the past 90 days.

Telos Corporation (NASDAQ:TLS - Get Free Report)'s stock price was down 3.9% on Wednesday . The company traded as low as $4.40 and last traded at $4.42. Approximately 551,769 shares changed hands during mid-day trading, an increase of 29% from the average session volume of 427,295 shares. The stock had previously closed at $4.60.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Needham & Company LLC started coverage on shares of Telos in a research report on Tuesday, May 26th. They set a "buy" rating and a $6.00 target price on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Telos in a report on Friday, July 17th. Three equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has an average rating of "Hold" and an average target price of $7.10.

Telos Price Performance

The firm has a 50-day simple moving average of $4.63 and a 200-day simple moving average of $4.58. The firm has a market cap of $330.70 million, a P/E ratio of -12.63 and a beta of 0.98. The company has a current ratio of 2.59, a quick ratio of 2.59 and a debt-to-equity ratio of 0.05.

Telos (NASDAQ:TLS - Get Free Report) last released its quarterly earnings results on Monday, May 11th. The company reported $0.06 EPS for the quarter, topping the consensus estimate of $0.02 by $0.04. The firm had revenue of $47.74 million during the quarter, compared to analyst estimates of $44.62 million. Telos had a negative return on equity of 11.95% and a negative net margin of 14.25%. As a group, analysts forecast that Telos Corporation will post -0.21 EPS for the current year.

Insiders Place Their Bets

In other news, Director Derrick D. Dockery sold 8,000 shares of the firm's stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $4.78, for a total value of $38,240.00. Following the sale, the director directly owned 186,591 shares in the company, valued at approximately $891,904.98. This trade represents a 4.11% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Bradley W. Jacobs sold 55,772 shares of Telos stock in a transaction that occurred on Monday, June 22nd. The stock was sold at an average price of $4.31, for a total transaction of $240,377.32. Following the completion of the transaction, the director directly owned 166,612 shares in the company, valued at approximately $718,097.72. The trade was a 25.08% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 320,772 shares of company stock worth $1,386,488. 14.90% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Telos

Several institutional investors have recently bought and sold shares of the company. JPMorgan Chase & Co. lifted its holdings in shares of Telos by 391.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 193,081 shares of the company's stock valued at $1,321,000 after purchasing an additional 153,802 shares during the last quarter. Weber Capital Management LLC ADV purchased a new position in Telos during the 4th quarter worth $9,152,000. Toth Financial Advisory Corp grew its stake in Telos by 13.2% during the 4th quarter. Toth Financial Advisory Corp now owns 24,091 shares of the company's stock worth $123,000 after buying an additional 2,800 shares during the last quarter. GSA Capital Partners LLP increased its position in Telos by 35.4% during the 4th quarter. GSA Capital Partners LLP now owns 355,767 shares of the company's stock valued at $1,814,000 after buying an additional 92,978 shares in the last quarter. Finally, Independent Advisor Alliance acquired a new position in Telos during the 4th quarter valued at about $96,000. 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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