Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 2.9% – Time to Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price traded up 2.9% on Friday . The stock traded as high as $67.10 and last traded at $64.58. Approximately 5,434,737 shares changed hands during mid-day trading, an increase of 21% from the average daily volume of 4,478,787 shares. The stock had previously closed at $62.79.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: New U.S. tariffs of up to 100% on imported drones and components are lifting domestic drone and defense stocks, including Kratos. The policy could improve the competitive position of U.S.-based suppliers and increase demand for domestically produced systems. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: An analyst report highlighted Kratos’ approximately $15 billion opportunity pipeline. Rising defense spending and potential new awards in hypersonics, jet engines and defense support could expand the company’s backlog and revenue, although the pipeline represents opportunities rather than contracted sales. Can Kratos Defense’s $15B Opportunity Pipeline Sustain Growth Momentum?
• Positive Sentiment: Management’s commentary from the second-quarter earnings call pointed to accelerating demand across hypersonic systems, jet engines and defense-support businesses. Executives also said investments in scalable, affordable manufacturing should help Kratos pursue more Department of Defense contracts. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
• Positive Sentiment: Kratos’ target systems were successfully used in a joint missile-defense exercise involving the U.S. Missile Defense Agency and Japan Maritime Self-Defense Force. The demonstration provides additional validation for its technology and could support future defense opportunities. Kratos Stock Is Up, What You Need To Know
• Neutral Sentiment: Investor interest remains tempered by valuation: Kratos trades at a very high earnings multiple, making the stock particularly sensitive to delays in contract awards or slower-than-expected growth.

Analysts Set New Price Targets

Several research firms have recently issued reports on KTOS. BNP Paribas Exane lifted their price target on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and cut their target price for the stock from $99.00 to $82.00 in a research report on Friday, June 12th. BTIG Research upped their price target on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Finally, Weiss Ratings lowered shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $99.47.

Kratos Defense & Security Solutions Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The company has a 50-day moving average price of $52.36 and a 200-day moving average price of $68.59. The firm has a market capitalization of $12.12 billion, a PE ratio of 379.88 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.07. The firm had revenue of $458.80 million during the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The firm’s quarterly revenue was up 30.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.11 EPS. Sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 EPS for the current year.

Insiders Place Their Bets

In related news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $57.74, for a total transaction of $375,310.00. Following the sale, the insider owned 215,052 shares in the company, valued at approximately $12,417,102.48. This trade represents a 2.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonah Adelman sold 31,348 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the completion of the sale, the insider directly owned 8,000 shares of the company’s stock, valued at $456,480. The trade was a 79.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders have sold 133,523 shares of company stock valued at $7,484,747. 1.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Harbor Investment Advisory LLC purchased a new position in Kratos Defense & Security Solutions during the second quarter worth approximately $25,000. Mcguire Capital Advisors Inc. acquired a new position in Kratos Defense & Security Solutions in the fourth quarter valued at $25,000. Atlantic Union Bankshares Corp boosted its holdings in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock valued at $29,000 after acquiring an additional 380 shares during the last quarter. Vision Retirement LLC grew its position in Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after acquiring an additional 317 shares during the period. Finally, Rakuten Securities Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth about $31,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.