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

Shares of Karman Holdings Inc. (NYSE:KRMN) gapped up before the market opened on Friday following a better than expected earnings announcement. 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 (EPS) for the quarter, beating the consensus estimate of $0.16 by $0.03. The firm had revenue of $201.62 million for 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% on a year-over-year basis. During the same period last year, the firm posted $0.10 earnings per share.

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.

Analysts Set New Price Targets

Several brokerages recently issued reports on KRMN. UBS Group set a $40.00 price target on shares of Karman in a research report on Thursday, October 22nd. Needham & Company LLC lowered their price objective on shares of Karman from $80.00 to $50.00 and set a “buy” rating for the company in a report on Friday. Barclays started coverage on Karman in a research report on Friday, October 9th. They set an “overweight” rating and a $79.00 price objective on the stock. Truist Financial reduced their target price on Karman from $118.00 to $85.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Finally, Guggenheim initiated coverage on Karman in a research report on Monday, September 14th. They issued a “buy” rating and a $63.00 target price for the company. Two analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $73.00.

Insider Buying and Selling

In other Karman news, Director David Stinnett bought 27,000 shares of the company’s stock in a transaction dated Wednesday, September 16th. The shares were purchased at an average price of $37.32 per share, for a total transaction of $1,007,640.00. Following the acquisition, the director owned 3,530,395 shares in the company, valued at approximately $131,754,341.40. This represents a 0.77% increase in their position. The purchase was disclosed in a filing with the SEC, which can be accessed through this link. Corporate insiders own 5.77% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the business. Eurizon Capital SGR S.p.A. purchased a new stake in shares of Karman during the third quarter valued at approximately $29,000. Fifth Third Bancorp increased its position in shares of Karman by 34.8% during the third quarter. Fifth Third Bancorp now owns 167,935 shares of the company’s stock valued at $5,444,000 after acquiring an additional 43,387 shares in the last quarter. King Luther Capital Management Corp increased its position in shares of Karman by 17.4% during the third quarter. King Luther Capital Management Corp now owns 119,121 shares of the company’s stock valued at $3,862,000 after acquiring an additional 17,697 shares in the last quarter. Maryland State Retirement & Pension System purchased a new position in Karman in the 3rd quarter worth approximately $1,006,000. Finally, Lido Advisors LLC raised its holdings in Karman by 104.2% in the 3rd quarter. Lido Advisors LLC now owns 19,130 shares of the company’s stock worth $620,000 after acquiring an additional 473,007 shares during the last quarter.

Karman Stock Performance

The company has a market capitalization of $5.37 billion, a PE ratio of 139.64 and a beta of 0.45. The company has a current ratio of 3.56, a quick ratio of 3.40 and a debt-to-equity ratio of 2.01. The business’s fifty day moving average is $35.97 and its two-hundred day moving average is $62.81.

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.