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

Kestra Medical Technologies, Ltd. (NASDAQ:KMTS)’s stock price gapped down before the market opened on Tuesday following a dissappointing 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 traded.

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

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

Analysts Set New Price Targets

A number of brokerages recently commented on KMTS. JPMorgan Chase & Co. initiated coverage on shares of Kestra Medical Technologies in a research report on Monday, August 10th. They issued an “overweight” rating and a $30.00 target price on the stock. Weiss Ratings cut Kestra Medical Technologies from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, August 31st. BTIG Research reiterated a “buy” rating and issued a $32.00 price objective on shares of Kestra Medical Technologies in a report on Tuesday. Wall Street Zen lowered Kestra Medical Technologies from a “hold” rating to a “sell” rating in a research note on Saturday. Finally, Wolfe Research set a $30.00 price target on Kestra Medical Technologies in a research report on Wednesday, July 15th. Four analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Hold” and an average price target of $28.14.

Insider Activity at Kestra Medical Technologies

In other Kestra Medical Technologies news, Director Jeffrey Schwartz sold 3,890 shares of the firm’s stock in a transaction dated Tuesday, September 8th. The shares were sold at an average price of $25.18, for a total transaction of $97,950.20. Following the completion of the sale, the director directly owned 7,019 shares in the company, valued at approximately $176,738.42. This trade represents a 35.66% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Kevin Reilly sold 2,932 shares of Kestra Medical Technologies stock in a transaction dated Tuesday, September 8th. The stock was sold at an average price of $25.13, for a total transaction of $73,681.16. Following the completion of the transaction, the director directly owned 5,368 shares of the company’s stock, valued at $134,897.84. This trade represents a 35.33% decrease in their ownership of the stock. 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 a total of 239,588 shares of company stock worth $5,802,688 in the last ninety days. 5.30% of the stock is currently owned by company insiders.

Institutional Trading of Kestra Medical Technologies

Several institutional investors have recently added to or reduced their stakes in the business. Corient Private Wealth LP raised its stake in Kestra Medical Technologies by 284.2% during the 2nd quarter. Corient Private Wealth LP now owns 60,614 shares of the company’s stock valued at $1,542,000 after buying an additional 44,839 shares during the last quarter. California State Teachers Retirement System grew its holdings in shares of Kestra Medical Technologies by 2,366.0% in the second quarter. California State Teachers Retirement System now owns 686,422 shares of the company’s stock worth $17,463,000 after acquiring an additional 658,587 shares during the period. The Manufacturers Life Insurance Company grew its holdings in shares of Kestra Medical Technologies by 6.6% in the first quarter. The Manufacturers Life Insurance Company now owns 92,515 shares of the company’s stock worth $1,844,000 after acquiring an additional 5,731 shares during the period. Quantinno Capital Management LP purchased a new stake in Kestra Medical Technologies during the first quarter valued at $431,000. Finally, Sei Investments Co. lifted its holdings in Kestra Medical Technologies by 22.6% in the first quarter. Sei Investments Co. now owns 237,116 shares of the company’s stock valued at $4,726,000 after acquiring an additional 43,753 shares during the period.

Kestra Medical Technologies Price Performance

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

Kestra Medical Technologies Company Profile

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.