Karman (NYSE:KRMN) Stock Falls 10% – What’s Next?

Shares of Karman Holdings Inc. (NYSE:KRMN) dropped 10% on Wednesday. The company traded as low as $36.80 and last traded at $35.5780. 213,062 shares traded hands during mid-day trading, a decline of 92% from the average session volume of 2,817,359 shares. The stock had previously closed at $39.51.

Key Stories Impacting Karman

Here are the key news stories impacting Karman this week:

• Positive Sentiment: Karman reported Q3 adjusted EPS of $0.19, above the $0.16 consensus, while revenue reached $201.6 million, up 65.6% year over year. Zacks Q3 earnings report
• Positive Sentiment: The company guided to FY2026 revenue of $755 million-$760 million, above the roughly $742 million analyst consensus. Its reported backlog of $1.7 billion also points to strong future demand. Revenue outlook and backlog
• Positive Sentiment: Piper Sandler reaffirmed its Overweight rating and raised its price target to $60 from $59, signaling continued analyst confidence. Piper Sandler rating update
• Negative Sentiment: Needham lowered its price target to $50 from $80, though it kept a Buy rating. The sizable reduction may temper optimism despite the earnings beat and stronger guidance. Needham analyst update

Analyst Upgrades and Downgrades

KRMN has been the subject of several recent analyst reports. Weiss Ratings upgraded shares of Karman from a “hold (c-)” rating to a “hold (c)” rating in a research report on Thursday, October 8th. Truist Financial cut their price target on Karman from $118.00 to $85.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. KeyCorp reduced their price objective on Karman from $100.00 to $65.00 and set an “overweight” rating for the company in a research report on Monday. BWS Financial reissued a “sell” rating and issued a $37.00 price objective on shares of Karman in a report on Monday, August 10th. Finally, UBS Group set a $40.00 target price on Karman in a research report on Thursday, October 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average target price of $73.00.

Karman Trading Up 35.8%

The business’s 50 day moving average price is $35.97 and its two-hundred 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. The company has a market capitalization of $5.78 billion, a price-to-earnings ratio of 150.35 and a beta of 0.45.

Karman (NYSE:KRMN) last posted its quarterly earnings data on Friday, November 6th. The company reported $0.19 EPS for the quarter, beating analysts’ consensus estimates of $0.16 by $0.03. Karman had a net margin of 6.31% and a return on equity of 15.54%. The business had revenue of $201.62 million for the quarter. During the same quarter in the prior year, the business earned $0.10 EPS. Karman’s revenue was up 65.6% compared to the same quarter last year. Equities analysts forecast that Karman Holdings Inc. will post 0.59 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director David Stinnett purchased 27,000 shares of the firm’s stock in a transaction on Wednesday, September 16th. The stock was purchased at an average cost of $37.32 per share, with a total value of $1,007,640.00. Following the purchase, the director owned 3,530,395 shares in the company, valued at $131,754,341.40. This trade represents a 0.77% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 5.77% of the stock is owned by company insiders.

Institutional Trading of Karman

Several institutional investors have recently modified their holdings of the company. First Trust Advisors LP boosted its stake in Karman by 3.3% in the 1st quarter. First Trust Advisors LP now owns 2,891,687 shares of the company’s stock worth $231,480,000 after purchasing an additional 93,565 shares during the period. Congress Asset Management Co. raised its stake in Karman by 23.8% during the 3rd quarter. Congress Asset Management Co. now owns 1,068,811 shares of the company’s stock valued at $34,651,000 after purchasing an additional 205,503 shares during the period. Conestoga Capital Advisors LLC lifted its holdings in shares of Karman by 8.1% in the third quarter. Conestoga Capital Advisors LLC now owns 863,076 shares of the company’s stock valued at $27,981,000 after purchasing an additional 64,580 shares in the last quarter. Amundi lifted its holdings in shares of Karman by 44.6% in the first quarter. Amundi now owns 512,231 shares of the company’s stock valued at $41,004,000 after purchasing an additional 158,068 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in shares of Karman by 123.8% in the first quarter. Bank of America Corp DE now owns 459,531 shares of the company’s stock worth $36,785,000 after buying an additional 254,161 shares during the period.

Karman Company Profile

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.