Kestra Medical Technologies (NASDAQ:KMTS) Shares Gap Down After Earnings Miss

Kestra Medical Technologies, Ltd. (NASDAQ:KMTS) shares gapped down prior to trading on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $24.06, but opened at $21.90. Kestra Medical Technologies shares last traded at $23.6230, with a volume of 103,116 shares.

The company reported ($0.75) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.61) by ($0.14). Kestra Medical Technologies had a negative return on equity of 57.38% and a negative net margin of 138.35%.The firm had revenue of $30.97 million during the quarter.

Key Kestra Medical Technologies News

Here are the key news stories impacting Kestra Medical Technologies this week:

• Positive Sentiment: BTIG reaffirmed its “Buy” rating and set a $32 price target, implying substantial upside from recent trading levels. Benzinga analyst rating report
• Positive Sentiment: Kestra raised its fiscal 2027 revenue outlook to approximately $141 million, above the $137.1 million analyst consensus. The improved outlook suggests continued confidence in demand for its wearable medical devices and digital healthcare products. Kestra raises 2027 outlook
• Positive Sentiment: First-quarter revenue increased to $30.97 million, and company commentary emphasized operating execution, patient protection and growth prospects. Kestra first-quarter financial results
• Neutral Sentiment: The Q1 fiscal 2027 earnings call transcript provides additional management commentary on results, product development and the updated outlook. Q1 2027 earnings call transcript
• Negative Sentiment: Kestra reported a quarterly loss of $0.75 per share, wider than the consensus loss estimate of $0.61. The company continues to report substantial losses, including a negative net margin and negative return on equity, which remain risks to valuation. Kestra Q1 earnings report

Analyst Ratings Changes

Several equities analysts have issued reports on the stock. Weiss Ratings cut shares of Kestra Medical Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a research report on Monday, August 31st. Wall Street Zen downgraded Kestra Medical Technologies from a “hold” rating to a “sell” rating in a report on Saturday. Wolfe Research set a $30.00 target price on Kestra Medical Technologies in a report on Wednesday, July 15th. JPMorgan Chase & Co. initiated coverage on Kestra Medical Technologies in a research report on Monday, August 10th. They issued an “overweight” rating and a $30.00 price target on the stock. Finally, Oppenheimer began coverage on Kestra Medical Technologies in a research note on Tuesday, July 21st. They issued a “market perform” rating for the company. Four analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus price target of $28.14.

Insider Buying and Selling

In related news, insider Brian Webster sold 51,900 shares of Kestra Medical Technologies stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $24.52, for a total value of $1,272,588.00. Following the completion of the sale, the insider owned 475,215 shares of the company’s stock, valued at approximately $11,652,271.80. This trade represents a 9.85% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Alfred Ford, Jr. sold 13,015 shares of the company’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $23.90, for a total transaction of $311,058.50. Following the transaction, the insider owned 105,839 shares in the company, valued at approximately $2,529,552.10. The trade was a 10.95% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 239,588 shares of company stock worth $5,802,688 over the last quarter. Corporate insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Kestra Medical Technologies

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Quantinno Capital Management LP purchased a new position in Kestra Medical Technologies during the first quarter valued at approximately $431,000. California State Teachers Retirement System lifted its stake in Kestra Medical Technologies by 39.2% in the 1st quarter. California State Teachers Retirement System now owns 27,835 shares of the company’s stock worth $555,000 after purchasing an additional 7,844 shares in the last quarter. Spartan Wealth Advisory Services LLC bought a new position in Kestra Medical Technologies in the 1st quarter valued at $603,000. Bank of New York Mellon Corp grew its position in shares of Kestra Medical Technologies by 47.2% during the 1st 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, Corient Private Wealth LP increased its holdings in shares of Kestra Medical Technologies by 284.2% in the second quarter. Corient Private Wealth LP now owns 60,614 shares of the company’s stock worth $1,542,000 after purchasing an additional 44,839 shares during the period.

Kestra Medical Technologies Stock Down 2.0%

The company has a quick ratio of 4.41, a current ratio of 4.41 and a debt-to-equity ratio of 0.16. The company has a market cap of $1.38 billion, a PE ratio of -9.74 and a beta of 0.62. The stock has a 50-day moving average of $25.26 and a 200-day moving average of $22.67.

About Kestra Medical Technologies

Kestra Medical Technologies, Inc is a medical device company focused on developing and commercializing technologies for patients at risk of sudden cardiac arrest. The company’s primary product is the ASSURE wearable cardioverter defibrillator, a wearable system designed to continuously monitor a patient’s heart rhythm and deliver an electrical shock when a life-threatening arrhythmia is detected.

The ASSURE system is intended to provide temporary protection for patients who may be at elevated risk of sudden cardiac death but are not yet candidates for, or are awaiting, an implantable cardioverter-defibrillator.