Karman (NYSE:KRMN) Shares Gap Up on Strong Earnings

Karman Holdings Inc. (NYSE:KRMN)’s stock price gapped up prior to trading on Friday following a stronger than expected earnings report. The stock had previously closed at $32.09, but opened at $35.90. Karman shares last traded at $39.5390, with a volume of 797,702 shares traded.

The company reported $0.19 earnings per share for the quarter, topping analysts’ consensus estimates of $0.16 by $0.03. The business had revenue of $201.62 million during the quarter. Karman had a return on equity of 15.54% and a net margin of 6.31%. Karman’s quarterly revenue was up 65.6% compared to the same quarter last year. During the same period last year, the firm posted $0.10 EPS.

Key Headlines Impacting Karman

Here are the key news stories impacting Karman this week:

• Positive Sentiment: Q3 beat and strong growth: Karman earned $0.19 per share, above the $0.16 consensus and up from $0.10 a year earlier. Revenue reached $201.62 million, a 65.6% year-over-year increase. Karman Q3 earnings and revenues surpass estimates
• Positive Sentiment: 2026 outlook and backlog: The company expects $755 million–$760 million in 2026 revenue and reported a $1.7 billion backlog, supporting visibility into future business. Karman revenue outlook and backlog
• Positive Sentiment: Analyst support: Piper Sandler reaffirmed its Overweight rating and raised its price target to $60 from $59, implying substantial upside from the cited $32.40 price. Piper Sandler rating and price target update
• Neutral Sentiment: Trading context: The supplied snapshot shows shares well below their 50- and 200-day averages, while the stock’s high reported P/E may be a concern for investors. The articles provided do not identify a specific negative catalyst for the recent weakness.

Wall Street Analyst Weigh In

Several research analysts have recently weighed in on KRMN shares. Truist Financial decreased their price objective on shares of Karman from $118.00 to $85.00 and set a “buy” rating for the company in a report on Thursday, August 13th. BWS Financial restated a “sell” rating and issued a $37.00 target price on shares of Karman in a report on Monday, August 10th. Weiss Ratings raised shares of Karman from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Barclays assumed coverage on shares of Karman in a research note on Friday, October 9th. They set an “overweight” rating and a $79.00 target price for the company. Finally, KeyCorp decreased their target price on shares of Karman from $100.00 to $65.00 and set an “overweight” rating for the company in a research note on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Karman has an average rating of “Moderate Buy” and a consensus target price of $73.00.

Insider Activity at Karman

In related news, Director David Stinnett acquired 27,000 shares of the firm’s stock in a transaction dated Wednesday, September 16th. The shares were purchased at an average price of $37.32 per share, with a total value of $1,007,640.00. Following the completion of the purchase, the director directly owned 3,530,395 shares of the company’s stock, valued at $131,754,341.40. This represents a 0.77% increase in their ownership of the stock. The purchase was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. 5.77% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in the stock. Grandeur Peak Global Advisors LLC increased its holdings in Karman by 98.4% in the 2nd quarter. Grandeur Peak Global Advisors LLC now owns 59,025 shares of the company’s stock worth $2,947,000 after acquiring an additional 29,281 shares in the last quarter. Readystate Asset Management LP purchased a new position in Karman during the second quarter valued at approximately $5,675,000. Vontobel Holding Ltd. increased its stake in shares of Karman by 53.3% in the third quarter. Vontobel Holding Ltd. now owns 131,881 shares of the company’s stock worth $4,276,000 after purchasing an additional 45,847 shares in the last quarter. Wellington Management Group LLP purchased a new stake in shares of Karman in the second quarter worth $16,086,000. Finally, Bouvel Investment Partners LLC bought a new stake in shares of Karman during the 3rd quarter valued at $1,841,000.

Karman Stock Up 26.2%

The stock has a market capitalization of $5.37 billion, a P/E ratio of 139.64 and a beta of 0.45. The company’s 50-day moving average price is $35.97 and its 200 day moving average price is $62.81. The company has a debt-to-equity ratio of 2.01, a quick ratio of 3.40 and a current ratio of 3.56.

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.