Telos (NASDAQ:TLS) Shares Gap Up After Strong Earnings

Telos Corporation (NASDAQ:TLS) shares gapped up prior to trading on Monday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.82, but opened at $6.09. Telos shares last traded at $6.84, with a volume of 2,190,324 shares.

The company reported $0.09 earnings per share for the quarter, topping the consensus estimate of $0.03 by $0.06. The business had revenue of $55.20 million during the quarter, compared to the consensus estimate of $50.11 million. Telos had a negative return on equity of 2.60% and a negative net margin of 8.13%.

Analyst Upgrades and Downgrades

A number of brokerages have issued reports on TLS. Yorkville Ives assumed coverage on Telos in a research report on Monday, October 5th. They issued an “outperform” rating and a $6.00 target price on the stock. Zacks Research raised Telos from a “hold” rating to a “strong-buy” rating in a research note on Thursday, August 20th. Wedbush downgraded Telos from an “outperform” rating to a “neutral” rating and set a $5.00 price objective on the stock. in a report on Thursday, September 10th. Weiss Ratings raised Telos from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th. Finally, Wall Street Zen cut Telos from a “buy” rating to a “hold” rating in a report on Saturday. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, three have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $6.42.

Insiders Place Their Bets

In other news, EVP Gary Bendza sold 174,539 shares of the company’s stock in a transaction on Friday, September 18th. The shares were sold at an average price of $4.05, for a total value of $706,882.95. Following the completion of the transaction, the executive vice president owned 337,008 shares in the company, valued at approximately $1,364,882.40. This represents a 34.12% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO John Wood sold 96,151 shares of the stock in a transaction on Monday, September 21st. The shares were sold at an average price of $4.05, for a total transaction of $389,411.55. Following the completion of the transaction, the chief executive officer directly owned 1,505,867 shares in the company, valued at $6,098,761.35. This trade represents a 6.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 581,549 shares of company stock worth $2,512,583 over the last 90 days. Insiders own 14.90% of the company’s stock.

Hedge Funds Weigh In On Telos

A number of hedge funds and other institutional investors have recently bought and sold shares of the company. R Squared Ltd lifted its holdings in shares of Telos by 40.5% in the third quarter. R Squared Ltd now owns 18,716 shares of the company’s stock valued at $76,000 after purchasing an additional 5,396 shares in the last quarter. Ashton Thomas Private Wealth LLC acquired a new stake in shares of Telos in the third quarter valued at approximately $42,000. Mirae Asset Global Investments Co. Ltd. purchased a new position in shares of Telos during the 3rd quarter worth approximately $158,000. Pinnacle Associates Ltd. increased its stake in shares of Telos by 5.1% during the 3rd quarter. Pinnacle Associates Ltd. now owns 2,341,741 shares of the company’s stock worth $9,531,000 after purchasing an additional 113,001 shares in the last quarter. Finally, Integrated Wealth Concepts LLC acquired a new position in shares of Telos during the 2nd quarter worth approximately $34,000. 62.14% of the stock is currently owned by hedge funds and other institutional investors.

Telos Price Performance

The company has a debt-to-equity ratio of 0.05, a quick ratio of 2.26 and a current ratio of 2.38. The stock has a market capitalization of $515.98 million, a price-to-earnings ratio of -32.41 and a beta of 0.98. The company has a 50-day moving average of $4.54 and a 200-day moving average of $4.52.

Telos Company Profile

Telos Corporation (NASDAQ: TLS) is a cybersecurity and information technology company that provides secure technology solutions to government and commercial organizations. The company focuses on helping customers protect critical systems, data and digital identities while supporting secure operations in complex and highly regulated environments.

Its offerings include cybersecurity consulting, cloud security, secure networking, identity and access management, risk management and governance solutions.