Amentum (NYSE:AMTM) Shares Gap Down – Time to Sell?

Amentum Holdings, Inc. (NYSE:AMTM) gapped down before the market opened on Tuesday . The stock had previously closed at $36.59, but opened at $33.64. Amentum shares last traded at $33.0540, with a volume of 1,482,759 shares.

Key Stories Impacting Amentum

Here are the key news stories impacting Amentum this week:

• Positive Sentiment: Q1 EPS beat consensus — Amentum reported $0.54 EPS, topping estimates and showing slight year-over-year EPS improvement, which supports near-term earnings credibility. Amentum Holdings (AMTM) Q1 Earnings Surpass Estimates
• Positive Sentiment: Analyst support — BTIG maintained a Buy rating and $35 price target, citing margin expansion, a robust backlog and strength in high‑growth defense markets, which may cap downside and support recovery. Amentum (AMTM): Buy Rating Backed by Margin Expansion…
• Neutral Sentiment: Company reaffirmed full‑year outlook — Management reiterated FY‑2026 guidance (EPS $2.25–2.45; revenue $14.0–14.3B) in the Q1 press release, signaling no change in their plan despite near‑term pressure. Amentum Reports First Quarter Fiscal Year 2026 Results and Reaffirms Full Year Guidance
• Neutral Sentiment: Corporate governance vote passed — At the annual meeting stockholders reaffirmed the board, auditor and executive pay, removing governance uncertainty. Amentum Stockholders Reaffirm Board, Auditor and Executive Pay
• Negative Sentiment: Guidance slightly trails estimates — The FY‑2026 EPS range and revenue midpoint came in a touch below analyst consensus, which market flow interpreted as a negative surprise and pressured the shares. Amentum shares fall, plunge 8% as fiscal 2026 guidance trails estimates
• Negative Sentiment: Revenue miss and YoY decline — Q1 revenue was $3.24B versus ~ $3.32B expected and was down ~5.2% year-over-year, raising near‑term top‑line growth concerns despite the EPS beat. Amentum Q1 results and materials

Wall Street Analyst Weigh In

A number of brokerages have recently commented on AMTM. Royal Bank Of Canada boosted their price objective on Amentum from $26.00 to $30.00 and gave the stock a “sector perform” rating in a research report on Wednesday, November 26th. JMP Securities set a $35.00 price target on shares of Amentum in a report on Wednesday, November 26th. Citizens Jmp raised their price objective on shares of Amentum from $35.00 to $40.00 and gave the company a “market outperform” rating in a report on Monday, January 12th. Weiss Ratings reiterated a “hold (c-)” rating on shares of Amentum in a research note on Monday, December 29th. Finally, Morgan Stanley raised Amentum from an “underweight” rating to an “equal weight” rating and increased their target price for the company from $20.00 to $35.00 in a report on Wednesday, November 26th. Seven analysts have rated the stock with a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $34.50.

Amentum Price Performance

The stock’s 50-day moving average is $32.19 and its 200 day moving average is $26.95. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.32 and a current ratio of 1.32. The stock has a market capitalization of $7.86 billion, a PE ratio of 119.73, a P/E/G ratio of 1.10 and a beta of -0.01.

Amentum (NYSE:AMTM) last announced its quarterly earnings results on Monday, February 9th. The company reported $0.54 earnings per share for the quarter, beating analysts’ consensus estimates of $0.52 by $0.02. The firm had revenue of $3.24 billion during the quarter, compared to analysts’ expectations of $3.32 billion. Amentum had a net margin of 0.46% and a return on equity of 11.57%. The firm’s revenue for the quarter was down 5.2% on a year-over-year basis. Amentum has set its FY 2026 guidance at 2.250-2.450 EPS. As a group, equities analysts expect that Amentum Holdings, Inc. will post 2.1 earnings per share for the current year.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Legacy Advisors LLC purchased a new stake in shares of Amentum in the fourth quarter valued at about $284,614,000. Invesco Ltd. increased its position in Amentum by 13.0% in the 3rd quarter. Invesco Ltd. now owns 22,116,835 shares of the company’s stock valued at $529,698,000 after acquiring an additional 2,539,594 shares during the period. Norges Bank purchased a new stake in Amentum during the 4th quarter valued at approximately $66,529,000. Primecap Management Co. CA raised its stake in Amentum by 19.6% during the 2nd quarter. Primecap Management Co. CA now owns 12,030,656 shares of the company’s stock valued at $284,044,000 after acquiring an additional 1,969,067 shares during the last quarter. Finally, Frontier Capital Management Co. LLC lifted its position in Amentum by 52.6% during the 2nd quarter. Frontier Capital Management Co. LLC now owns 5,460,743 shares of the company’s stock worth $128,928,000 after acquiring an additional 1,882,011 shares during the period. Institutional investors and hedge funds own 39.93% of the company’s stock.

About Amentum

Amentum is a government services provider specializing in mission-critical solutions for defense, federal civilian and commercial customers around the globe. The company delivers integrated services that span the full lifecycle of complex programs and facilities, including engineering, program and project management, logistics, operations, maintenance and environmental remediation.

Core offerings include infrastructure support, energy and facilities management, environmental solutions and nuclear services.