Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Given Consensus Recommendation of “Moderate Buy” by Analysts

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) have been assigned a consensus rating of “Moderate Buy” from the twenty-three brokerages that are covering the stock, Marketbeat Ratings reports. Four research analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 12-month target price among brokerages that have covered the stock in the last year is $101.3529.

A number of equities research analysts have recently commented on the company. UBS Group reissued a “neutral” rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Piper Sandler dropped their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. BTIG Research cut their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, May 7th. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Finally, JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and decreased their target price for the stock from $99.00 to $82.00 in a report on Friday, June 12th.

Kratos Defense & Security Solutions Price Performance

Shares of KTOS opened at $54.21 on Wednesday. Kratos Defense & Security Solutions has a fifty-two week low of $39.00 and a fifty-two week high of $134.00. The firm’s 50-day simple moving average is $60.82 and its two-hundred day simple moving average is $79.48. The stock has a market cap of $10.17 billion, a PE ratio of 318.88 and a beta of 1.04. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping analysts’ consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm had revenue of $371.00 million for the quarter, compared to analysts’ expectations of $345.00 million. During the same period in the previous year, the firm posted $0.12 EPS. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. Analysts anticipate that Kratos Defense & Security Solutions will post 0.47 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In related news, insider David M. Carter sold 4,000 shares of the business’s stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $59.16, for a total value of $236,640.00. Following the completion of the transaction, the insider directly owned 70,092 shares in the company, valued at $4,146,642.72. The trade was a 5.40% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction on Monday, June 1st. The shares were sold at an average price of $63.74, for a total value of $318,700.00. Following the sale, the chief financial officer owned 290,161 shares in the company, valued at approximately $18,494,862.14. This represents a 1.69% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 196,278 shares of company stock valued at $12,428,868 over the last ninety days. Corporate insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently bought and sold shares of KTOS. Geode Capital Management LLC raised its holdings in shares of Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock valued at $337,565,000 after purchasing an additional 148,622 shares during the last quarter. Morgan Stanley boosted its holdings in Kratos Defense & Security Solutions by 3.9% in the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock worth $251,345,000 after purchasing an additional 124,607 shares during the last quarter. First Trust Advisors LP grew its position in Kratos Defense & Security Solutions by 29.5% in the 3rd 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 period. Invesco Ltd. grew its position in Kratos Defense & Security Solutions by 7.4% in the 3rd 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. Finally, Alliancebernstein L.P. raised its stake in Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock valued at $247,409,000 after buying an additional 2,525,921 shares during the last quarter. Hedge funds and other institutional investors own 75.92% of the company’s stock.

Key Stories Impacting Kratos Defense & Security Solutions

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Kratos is being viewed as a possible winner from higher defense spending and urgent U.S. military demand for more munitions, missiles, and propulsion systems. Can Kratos Defense Become a Major Beneficiary of Rising Missile Demand?
• Positive Sentiment: The company’s autonomous trucking milestone added to investor interest by showcasing execution on advanced unmanned and logistics technology. Kratos (KTOS) Stock Trades Up, Here Is Why
• Neutral Sentiment: Analyst sentiment remains mixed-to-positive overall, with several firms maintaining buy-like views, though some recently lowered price targets.
• Negative Sentiment: Recent insider sales by senior executives, including Marie Mendoza and Phillip Carrai, may be creating some caution among investors even though the trades were pre-planned under 10b5-1 programs.
• Negative Sentiment: A separate article flagged KTOS as a “cash-burning” stock to watch, reinforcing concerns about valuation and the company’s ability to justify its premium multiple if growth cools.

Kratos Defense & Security Solutions Company Profile

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.