Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up After Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares gapped up prior to trading on Monday after Jefferies Financial Group upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $67.31, but opened at $71.13. Jefferies Financial Group now has a $85.00 price target on the stock. Kratos Defense & Security Solutions shares last traded at $72.25, with a volume of 1,052,600 shares changing hands.

Several other analysts have also recently commented on the company. Piper Sandler began coverage on Kratos Defense & Security Solutions in a report on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target for the company. JonesTrading started coverage on Kratos Defense & Security Solutions in a report on Monday, January 5th. They set a “buy” rating on the stock. Stifel Nicolaus raised their target price on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. UBS Group assumed coverage on shares of Kratos Defense & Security Solutions in a report on Wednesday, February 18th. They set a “neutral” rating and a $79.00 price objective on the stock. Finally, Weiss Ratings reiterated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $98.28.

Insider Activity at Kratos Defense & Security Solutions

In other news, CEO Eric M. Demarco sold 191,699 shares of the stock in a transaction dated Tuesday, January 6th. The shares were sold at an average price of $90.28, for a total transaction of $17,306,585.72. Following the transaction, the chief executive officer directly owned 687,117 shares in the company, valued at $62,032,922.76. This represents a 21.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Scott I. Anderson sold 15,000 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $89.11, for a total transaction of $1,336,650.00. Following the completion of the sale, the director directly owned 51,334 shares in the company, valued at $4,574,372.74. This represents a 22.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 402,699 shares of company stock worth $36,696,613. Corporate insiders own 2.37% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in KTOS. Amalgamated Bank raised its stake in shares of Kratos Defense & Security Solutions by 57.7% in the 3rd quarter. Amalgamated Bank now owns 73,673 shares of the aerospace company’s stock valued at $6,732,000 after acquiring an additional 26,946 shares during the period. Mission Wealth Management LP purchased a new stake in Kratos Defense & Security Solutions during the 3rd quarter worth $1,828,000. Baillie Gifford & Co. acquired a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at $19,048,000. Victory Capital Management Inc. acquired a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at $21,013,000. Finally, Barclays PLC raised its position in Kratos Defense & Security Solutions by 16.3% in the third quarter. Barclays PLC now owns 413,514 shares of the aerospace company’s stock valued at $37,783,000 after purchasing an additional 57,906 shares during the period. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Stock Up 7.6%

The firm has a 50-day simple moving average of $89.65 and a 200 day simple moving average of $88.02. The company has a market capitalization of $13.57 billion, a PE ratio of 556.66 and a beta of 1.22. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.46.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.04. The business had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The company’s revenue for the quarter was up 21.9% compared to the same quarter last year. During the same quarter last year, the firm earned $0.13 earnings per share. On average, research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

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.