Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Picked Up by Analysts at Rothschild & Co Redburn

Research analysts at Rothschild & Co Redburn began coverage on shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) in a research note issued to investors on Tuesday, MarketBeat reports. The brokerage set a “buy” rating and a $70.00 price target on the aerospace company’s stock. Rothschild & Co Redburn’s price target would indicate a potential upside of 66.91% from the company’s current price.

Other equities research analysts have also recently issued reports about the company. Jefferies Financial Group decreased their price objective on Kratos Defense & Security Solutions from $80.00 to $68.00 and set a “buy” rating for the company in a research note on Wednesday, September 30th. Truist Financial reduced their target price on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Guggenheim initiated coverage on shares of Kratos Defense & Security Solutions in a report on Monday, September 14th. They issued a “buy” rating and a $74.00 price target on the stock. Weiss Ratings lowered shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. Finally, Wedbush initiated coverage on shares of Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They set an “outperform” rating and a $85.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $95.06.

Kratos Defense & Security Solutions Price Performance

Shares of KTOS opened at $41.94 on Tuesday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The company has a 50 day moving average price of $50.89 and a 200-day moving average price of $56.29. Kratos Defense & Security Solutions has a fifty-two week low of $40.92 and a fifty-two week high of $134.00. The stock has a market capitalization of $7.87 billion, a PE ratio of 246.71 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. Kratos Defense & Security Solutions’s revenue was up 30.5% compared to the same quarter last year. During the same period last year, the company posted $0.11 earnings per share. Equities analysts predict that Kratos Defense & Security Solutions will post 0.57 earnings per share for the current fiscal year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, Director Scot B. Jarvis sold 10,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total value of $635,000.00. Following the completion of the sale, the director directly owned 65,123 shares in the company, valued at $4,135,310.50. This trade represents a 13.31% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Deanna Lund sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $48.78, for a total transaction of $341,460.00. Following the sale, the chief financial officer directly owned 273,511 shares in the company, valued at approximately $13,341,866.58. This represents a 2.50% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 375,513 shares of company stock valued at $23,597,752. Insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after acquiring an additional 317 shares during the last quarter. Harbor Investment Advisory LLC purchased a new stake in Kratos Defense & Security Solutions during the 2nd quarter valued at about $25,000. IMG Wealth Management Inc. increased its holdings in shares of Kratos Defense & Security Solutions by 427.0% in the first quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock valued at $37,000 after purchasing an additional 427 shares during the period. Geneos Wealth Management Inc. increased its holdings in shares of Kratos Defense & Security Solutions by 333.3% in the first quarter. Geneos Wealth Management Inc. now owns 650 shares of the aerospace company’s stock valued at $46,000 after purchasing an additional 500 shares during the period. Finally, Compass Financial Management LLC purchased a new position in shares of Kratos Defense & Security Solutions in the second quarter worth about $34,000. Hedge funds and other institutional investors own 75.92% of the company’s stock.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: New contract activity supports the growth outlook. Reports highlighted approximately $100 million in contracts, potentially strengthening Kratos’ revenue visibility across its defense and aerospace programs. Kratos Defense and Security Solutions stock gains on USD 100 million contracts
• Positive Sentiment: New analyst coverage is bullish. Rothschild & Co. Redburn initiated coverage with a Buy rating and a $70 price target, implying substantial upside from recent trading levels. Rothschild and Co Redburn initiates Kratos coverage
• Positive Sentiment: Options activity suggests speculative bullish interest. Investors purchased 26,657 call options, about 153% above typical daily call volume. This may indicate traders positioning for a rebound, although it does not guarantee buying in the shares.
• Neutral Sentiment: The stock has reached a technical pressure point. KTOS touched a new 52-week low near $41.72 after a sharp pullback, while its three-year gain remains substantial. The move may attract value-oriented buyers but also reflects deteriorating investor momentum. Kratos stock hits 52-week low
• Negative Sentiment: Valuation and cash-flow concerns are weighing on sentiment. Commentary questioned whether Kratos’ share price already reflects future contracts, facilities and defense-technology growth. With a very high price-to-earnings ratio, investors are demanding significant cash-flow improvement.
• Negative Sentiment: Execution risks remain. Supply-chain constraints and relatively low returns on equity could limit growth, while weakness across peer drone and defense companies has added sector-wide pressure. Kratos growth prospects and risks

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.