Bradley W. Jacobs, a director at Telos Corp (NASDAQ:TLS), has acquired 4,000 shares of the company's common stock, according to a recent SEC filing. The shares were purchased on November 18 at a weighted average price of $3.35 per share, resulting in a total transaction value of $13,400. Following this acquisition, Jacobs now holds 151,095 shares directly. The purchase was executed through multiple transactions at prices ranging from $3.34 to $3.39 per share.
In other recent news, Telos Corp. has been the subject of recent analyst attention. DA Davidson has upgraded Telos' stock target to $3.50, maintaining a neutral rating, due to strong Q3 performance and a promising outlook. BMO Capital Markets also raised its price target for Telos from $3.00 to $4.50, keeping a Market Perform rating. These adjustments reflect Telos' Q3 results, which surpassed expectations, particularly in revenue from the Transportation Security Administration (TSA) and the commencement of income generation from one of two new major programs.
Telos reported Q3 revenue of $23.8 million, primarily driven by their TSA PreCheck program. The company also improved its adjusted gross margin and reported a smaller adjusted EBITDA loss than anticipated. Furthermore, Telos announced a restructuring plan that is expected to lead to a slightly positive EBITDA by 2025.
Looking ahead, Telos projects Q4 revenue growth, with estimates ranging from $24.5 million to $26.5 million. By 2025, the company aims to establish 500 TSA PreCheck enrollment locations and expects substantial annual revenue growth, supported by a robust business pipeline valued at approximately $4.1 billion. Despite projecting an adjusted EBITDA loss for Q4, Telos is optimistic about generating positive free cash flow as contracts mature.
InvestingPro Insights
The recent insider purchase by Bradley W. Jacobs at Telos Corp (NASDAQ:TLS) comes at a time when the company's stock has experienced significant volatility. According to InvestingPro data, TLS has seen a 17.09% decline in the past week and a 14.7% drop over the last month. This context makes the director's decision to increase his stake particularly noteworthy.
Despite the recent downturn, TLS maintains a strong balance sheet. An InvestingPro Tip highlights that the company holds more cash than debt, which could provide financial flexibility in challenging times. Additionally, TLS's liquid assets exceed its short-term obligations, suggesting a solid near-term financial position.
However, investors should note that analysts anticipate a sales decline in the current year, and the company is not expected to be profitable this year. This aligns with the reported revenue growth of -18.93% over the last twelve months and an operating income margin of -34.38%.
For those seeking a more comprehensive analysis, InvestingPro offers 9 additional tips for TLS, providing a deeper understanding of the company's financial health and market position. These insights could be valuable for investors considering the stock's potential in light of recent insider activity and market performance.
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