BK Technologies Corp Director Sells 300 Shares Amid Overvaluation Concerns

Ellen Ohara, a Director at BK Technologies Corp, sold 300 shares on August 19, 2025, leaving her with 2,140 shares. BK Technologies Corp specializes in wireless communications products for public safety professionals and government agencies. Over the past year, Ohara has sold a total of 300 shares and has not purchased any shares. The company's GF Value is $18.81, and its price-to-GF-Value ratio is 3.41, indicating the stock is significantly overvalued.

BK Technologies Corp (BKTI) reported robust financial performance for the second quarter of 2025, with a 4.5% increase in revenue to $21.2 million [1]. The company's gross margin expanded sharply to 47.4%, up from 37.3% in the prior year, driven by a favorable product mix and operational efficiencies [1]. Net income surged 124.8% to $3.7 million, and adjusted earnings per share (EPS) rose to $1.30 from $0.55, reflecting a 136.4% year-over-year increase [1].

The company's stock price surged 50.3% since the earnings report, contrasting with the S&P 500's 0.2% loss over the same period [1]. Over the past month, BKTI gained 61.8% compared to the S&P 500's 2.5% increase [1].

BKTI's revenue growth was supported by strong demand for its Land Mobile Radio (LMR) unit, particularly the BKR Series radios [1]. The company also launched RelayONE, a portable repeater kit within the BK ONE suite, with the first order placed by the Larimer County Sheriff's Office in Colorado [1]. The company secured substantial follow-on orders from the USDA Forest Service after quarter-end, indicating a strong position in the federal communications market [1].

BKTI's management raised its full-year 2025 GAAP EPS target to $3.15 from $2.40 and its non-GAAP adjusted EPS target to $3.80 from $2.80 [1]. The company expects revenue growth at the high end of its single-digit range and gross margins above 47%, an improvement from its earlier guidance [1].

The company's financial health was further bolstered by a strong balance sheet, with working capital increasing to $28.9 million and cash and equivalents growing to $11.9 million [1]. BK Technologies Corp remains debt-free, highlighting its improved balance sheet flexibility.

However, the company faces challenges such as higher expenses and backlog challenges. Selling, general, and administrative expenses increased to $6 million, and engineering and product development expenses rose to 10.9% of sales [2]. The backlog at the end of Q2 was lower than anticipated at $16 million [2].

Despite these challenges, BK Technologies Corp's strong Q2 performance and positive outlook have driven its stock price higher. The company's GF Value is $18.81, and its price-to-GF-Value ratio is 3.41, indicating the stock is significantly overvalued [3].

References:
[1] https://www.nasdaq.com/articles/bk-technologies-stock-surges-following-strong-q2-earnings-and-margins
[2] https://www.gurufocus.com/news/3064959/bk-technologies-corp-bkti-q2-2025-earnings-call-highlights-revenue-growth-and-margin-expansion-amid-strategic-investments
[3] https://www.gurufocus.com/news/3062563/bk-technologies-bkti-reports-strong-q2-with-revenue-and-margin-growth