KEYW Holding Corp. (NASDAQ:KEYW)
KEYW Holding Corp. (NASDAQ:KEYW) stock dropped over 33% on Friday after the company reported a Q3 loss of (-$4.2) million, or (-$0.08) per share, after reporting a profit for the same period a year earlier. Volume was over six times the listed daily average of 412,000. The earnings of the Hanover, Maryland-based company fell short of Wall Street expectations which had been for a $0.05 per share profit.
KEYW Holding Corp. (NASDAQ:KEYW) is a national security solutions provider for the Intelligence, Cyber, and Counterterrorism agencies. KEYW supports the collection, processing, analysis and dissemination of information across the full spectrum of America’s national security missions. The company employs over 2,000 professionals in the industry who address such complex problems as preventing cyber threats, transforming data into intelligence, and combating global terrorism.
KEYW Stock Performance
KEYW shares had traded over $12 at the beginning of 2017 but experienced a consistent slide to the current $5 level. Year-to-date, KEYW Holding Corp. (NASDAQ:KEYW) stock has lost over 56% and lost over 30% in the last week alone. The latest downturn eradicated the old 52-week low of $6.18.
Some observers look at the performance of the stock and maintain a “wait and see” posture. However, analysts have been reiterating or upgrading their ratings on KEYW stock throughout the year. In 2017, RBC Capital Markets initiated coverage with an “Outperform” rating and a $12 price target. In May, Maxim Group upgraded their rating from a “Hold” to a “Buy” with a $13 price target. That was followed, in August, by Drexel Hamilton raising their “Hold” rating to a “Buy”, then on Friday Maxim reiterated their rating but lowered their price target to $10 from $13.
KEYW Holding Corp. (NASDAQ:KEYW) has reported steady sales near the $300 million mark for the past four years. While sales growth has been absent, a concern for steady earnings seem to be the area of larger concern for investors. In 2012, 2014, and 2016, the company reported per share profits of $0.04, $0.18, and $0.05. However, 2013 and 2015 produced per share losses of (-$0.31) and (-$0.77).
Interested investors should not the high short-sale position that the market has established in the company – over 20% of the stock’s float is held short.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Steve Clark is a 23-year Wall St professional with stints in M&A, risk management, and algorithm trading. Steve keeps his head in the game by looking for, and writing about, small companies that often get overlooked by the big investment firms.