Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 4.6% – Here’s Why

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price fell 4.6% during mid-day trading on Wednesday . The stock traded as low as $109.26 and last traded at $112.67. 3,741,818 shares changed hands during mid-day trading, a decline of 17% from the average session volume of 4,496,959 shares. The stock had previously closed at $118.06.

Wall Street Analyst Weigh In

Several research firms have recently weighed in on KTOS. Jefferies Financial Group reissued a “hold” rating and issued a $85.00 target price on shares of Kratos Defense & Security Solutions in a research report on Thursday, November 6th. B. Riley raised their price target on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a “buy” rating in a report on Friday, January 9th. Piper Sandler began coverage on Kratos Defense & Security Solutions in a report on Wednesday, January 21st. They set a “neutral” rating and a $99.00 target price on the stock. Canaccord Genuity Group raised their price objective on shares of Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the company a “buy” rating in a research report on Thursday, October 9th. Finally, BTIG Research lifted their target price on Kratos Defense & Security Solutions from $80.00 to $95.00 and gave the stock a “buy” rating in a report on Thursday, November 6th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $95.28.

Kratos Defense & Security Solutions Stock Down 4.6%

The company has a market capitalization of $19.02 billion, a price-to-earnings ratio of 866.76 and a beta of 1.09. The company has a quick ratio of 3.68, a current ratio of 4.30 and a debt-to-equity ratio of 0.04. The business has a fifty day simple moving average of $88.58 and a two-hundred day simple moving average of $79.50.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.02. The firm had revenue of $347.60 million during the quarter, compared to analysts’ expectations of $323.01 million. Kratos Defense & Security Solutions had a return on equity of 3.14% and a net margin of 1.56%.The company’s revenue was up 26.0% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 earnings per share. Equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insider Buying and Selling

In related news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction on Thursday, January 15th. The stock was sold at an average price of $123.30, for a total value of $801,450.00. Following the transaction, the insider owned 219,741 shares in the company, valued at approximately $27,094,065.30. This trade represents a 2.87% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, SVP Marie Mendoza sold 1,676 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Thursday, January 15th. The shares were sold at an average price of $120.18, for a total transaction of $201,421.68. Following the sale, the senior vice president directly owned 63,393 shares in the company, valued at $7,618,570.74. This trade represents a 2.58% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 904,815 shares of company stock valued at $73,587,741 in the last 90 days. 2.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in KTOS. Franklin Resources Inc. grew its position in Kratos Defense & Security Solutions by 29.6% during the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock valued at $236,268,000 after buying an additional 1,162,577 shares during the period. ARK Investment Management LLC lifted its position in Kratos Defense & Security Solutions by 22.2% during the second quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company’s stock valued at $209,382,000 after purchasing an additional 818,104 shares during the last quarter. Geode Capital Management LLC lifted its position in Kratos Defense & Security Solutions by 8.3% in the 2nd quarter. Geode Capital Management LLC now owns 3,949,763 shares of the aerospace company’s stock worth $183,490,000 after buying an additional 301,135 shares during the last quarter. First Trust Advisors LP grew its holdings in shares of Kratos Defense & Security Solutions by 29.5% in the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock worth $280,402,000 after purchasing an additional 698,778 shares during the last quarter. Finally, Invesco Ltd. boosted its holdings in shares of Kratos Defense & Security Solutions by 7.4% during the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock worth $278,331,000 after purchasing an additional 209,189 shares during the period. 75.92% of the stock is owned by institutional investors.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.