Kestra Medical Technologies (NASDAQ:KMTS) Stock Price Down 8.7% After Earnings Miss

Kestra Medical Technologies, Ltd. (NASDAQ:KMTS) shares were down 8.7% on Wednesday following a weaker than expected earnings announcement. The company traded as low as $21.03 and last traded at $22.0880. Approximately 122,751 shares changed hands during mid-day trading, a decline of 64% from the average daily volume of 338,456 shares. The stock had previously closed at $24.18.

The company reported ($0.67) EPS for the quarter, missing analysts’ consensus estimates of ($0.59) by ($0.08). The firm had revenue of $28.64 million for the quarter. Kestra Medical Technologies had a negative return on equity of 65.49% and a negative net margin of 171.87%.

Key Stories Impacting Kestra Medical Technologies

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

• Positive Sentiment: BTIG Research raised its price target on Kestra Medical Technologies (KMTS) from $30 to $32 and reiterated a buy rating, implying roughly 32% upside from the current share price. BTIG raises Kestra Medical price target
• Positive Sentiment: The company announced a $200 million non-dilutive term loan facility, which should strengthen liquidity and reduce near-term financing pressure. Kestra secures $200 million financing
• Positive Sentiment: Management guided FY2027 revenue to $137 million, slightly above Wall Street expectations, and said it is targeting 70%+ gross margins in the coming years. Kestra FY2027 guidance and margin targets
• Neutral Sentiment: Kestra reported Q4 EPS of -$0.67, missing the consensus estimate of -$0.59, but revenue of $28.64 million was a top-line beat. Kestra Q4 earnings recap
• Neutral Sentiment: The company’s earnings call transcript and press release may draw additional attention, but they mainly reinforce the same themes: revenue growth, ongoing losses, and a stronger balance sheet. Kestra quarterly results release
• Negative Sentiment: The quarterly loss and negative margins highlight that KMTS remains unprofitable, which may temper enthusiasm around the results. Kestra earnings call and transcript

Analyst Upgrades and Downgrades

A number of research firms have recently commented on KMTS. Weiss Ratings upgraded Kestra Medical Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a report on Tuesday, June 30th. BTIG Research boosted their target price on Kestra Medical Technologies from $30.00 to $32.00 and gave the stock a “buy” rating in a research note on Wednesday. Wall Street Zen raised Kestra Medical Technologies from a “sell” rating to a “hold” rating in a report on Saturday, June 27th. Wolfe Research set a $30.00 price objective on shares of Kestra Medical Technologies in a report on Wednesday. Finally, The Goldman Sachs Group reduced their price objective on shares of Kestra Medical Technologies from $22.00 to $17.00 and set a “neutral” rating for the company in a research report on Thursday, April 9th. Three investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $27.83.

Insider Activity at Kestra Medical Technologies

In other news, insider Brian Daniel Webster sold 15,000 shares of Kestra Medical Technologies stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $20.81, for a total transaction of $312,150.00. Following the sale, the insider owned 395,467 shares in the company, valued at approximately $8,229,668.27. The trade was a 3.65% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Company insiders own 3.60% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in KMTS. Farther Finance Advisors LLC purchased a new position in Kestra Medical Technologies during the 4th quarter worth approximately $31,000. Russell Investments Group Ltd. lifted its stake in Kestra Medical Technologies by 43.5% in the fourth quarter. Russell Investments Group Ltd. now owns 1,563 shares of the company’s stock valued at $41,000 after buying an additional 474 shares during the last quarter. BNP Paribas Financial Markets boosted its holdings in shares of Kestra Medical Technologies by 148.9% in the third quarter. BNP Paribas Financial Markets now owns 2,738 shares of the company’s stock valued at $65,000 after acquiring an additional 1,638 shares during the period. Daiwa Securities Group Inc. acquired a new stake in shares of Kestra Medical Technologies in the fourth quarter valued at approximately $72,000. Finally, Brown Brothers Harriman & Co. grew its position in shares of Kestra Medical Technologies by 26.8% during the third quarter. Brown Brothers Harriman & Co. now owns 3,104 shares of the company’s stock worth $74,000 after acquiring an additional 656 shares during the last quarter.

Kestra Medical Technologies Trading Down 6.4%

The business’s 50-day moving average price is $22.09 and its 200-day moving average price is $22.75. The firm has a market capitalization of $1.32 billion, a PE ratio of -5.72 and a beta of 0.47. The company has a debt-to-equity ratio of 0.15, a current ratio of 7.32 and a quick ratio of 7.32.

Kestra Medical Technologies Company Profile

We are a commercial-stage, wearable medical device and digital healthcare company focused on transforming patient outcomes in cardiovascular disease using monitoring and therapeutic intervention technologies that are intuitive, intelligent, and connected. We have developed and are commercializing our Cardiac Recovery System platform, a comprehensive and advanced system that integrates monitoring, therapeutic treatment, digital health, and patient support services into a single, unified solution. The cornerstone of our Cardiac Recovery System platform is the ASSURE WCD, a next generation wearable cardioverter defibrillator (“WCD”) used to protect patients at an elevated risk of sudden cardiac arrest (“SCA”), a major public health problem that accounts for approximately 50% of all cardiovascular deaths in the U.S.