Karman (NYSE:KRMN) Shares Gap Up – Should You Buy?

Karman Holdings Inc. (NYSE:KRMN)’s share price gapped up before the market opened on Thursday . The stock had previously closed at $91.72, but opened at $97.02. Karman shares last traded at $101.4350, with a volume of 648,176 shares trading hands.

Analysts Set New Price Targets

Several research firms have recently commented on KRMN. Citigroup started coverage on shares of Karman in a research note on Thursday, December 11th. They set a “buy” rating and a $84.00 price objective for the company. Weiss Ratings reaffirmed a “hold (c-)” rating on shares of Karman in a research report on Monday, December 29th. KeyCorp initiated coverage on Karman in a report on Thursday, December 18th. They issued an “overweight” rating and a $80.00 price objective on the stock. Evercore ISI raised their price target on shares of Karman from $58.00 to $75.00 and gave the stock an “outperform” rating in a research report on Monday, September 29th. Finally, Truist Financial started coverage on Karman in a report on Friday, October 10th. They issued a “buy” rating and a $89.00 price objective for the company. Two analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and one has issued a Hold rating to the company’s stock. According to MarketBeat.com, Karman presently has an average rating of “Buy” and an average target price of $80.43.

Karman Stock Up 10.2%

The company has a debt-to-equity ratio of 1.27, a quick ratio of 2.69 and a current ratio of 2.86. The business’s 50 day moving average price is $71.31 and its 200-day moving average price is $63.67. The firm has a market capitalization of $13.38 billion and a PE ratio of 404.69.

Karman (NYSE:KRMN) last posted its quarterly earnings data on Friday, November 7th. The company reported $0.10 EPS for the quarter, meeting the consensus estimate of $0.10. Karman had a net margin of 2.65% and a return on equity of 11.11%. The business had revenue of $121.79 million during the quarter. During the same period in the previous year, the business posted $0.04 EPS. The company’s revenue for the quarter was up 41.7% compared to the same quarter last year.

Insider Buying and Selling

In related news, COO Jonathan Beaudoin sold 74,000 shares of the company’s stock in a transaction that occurred on Thursday, November 13th. The stock was sold at an average price of $63.69, for a total value of $4,713,060.00. Following the completion of the transaction, the chief operating officer directly owned 666,861 shares of the company’s stock, valued at $42,472,377.09. This represents a 9.99% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Michael Willis sold 115,000 shares of the firm’s stock in a transaction that occurred on Monday, November 17th. The stock was sold at an average price of $58.63, for a total transaction of $6,742,450.00. Following the sale, the chief financial officer directly owned 859,709 shares in the company, valued at approximately $50,404,738.67. The trade was a 11.80% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 251,000 shares of company stock worth $15,419,170 over the last 90 days.

Institutional Investors Weigh In On Karman

Institutional investors and hedge funds have recently bought and sold shares of the stock. Lexington Partners L.P. purchased a new position in shares of Karman during the third quarter worth about $319,861,000. Vanguard Group Inc. grew its stake in Karman by 99.0% during the 3rd quarter. Vanguard Group Inc. now owns 3,720,674 shares of the company’s stock worth $268,633,000 after buying an additional 1,851,394 shares during the last quarter. Donaldson Capital Management LLC purchased a new position in Karman during the 3rd quarter worth approximately $252,803,000. Invesco Ltd. increased its position in Karman by 68.6% during the third quarter. Invesco Ltd. now owns 3,211,187 shares of the company’s stock worth $231,848,000 after buying an additional 1,306,135 shares during the period. Finally, Bamco Inc. NY lifted its stake in Karman by 0.6% in the second quarter. Bamco Inc. NY now owns 2,415,134 shares of the company’s stock valued at $121,650,000 after buying an additional 14,486 shares during the last quarter.

Karman Company Profile

We specialize in the upfront design, testing, manufacturing, and sale of mission-critical systems for existing and emerging missile and defense, and space programs. Our integrated payload protection, propulsion, and interstage system solutions are deployed across a wide variety of existing and emerging programs supporting important Department of Defense (“DoD”) and space sector initiatives. We estimate that no single program accounted for more than 10% of sales for the nine months ended September 30, 2024 or the twelve months ended December 31, 2023, with revenue from over 100 active programs supporting current production and next-generation space, missile, hypersonic, and defense applications.