Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 6.2% Higher on Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price rose 6.2% during mid-day trading on Tuesday after Wedbush upgraded the stock to a strong-buy rating. The company traded as high as $51.47 and last traded at $49.86. Approximately 5,611,314 shares traded hands during trading, an increase of 23% from the average daily volume of 4,571,764 shares. The stock had previously closed at $46.95.

A number of other analysts also recently weighed in on KTOS. BNP Paribas Exane upped their price target on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and decreased their price objective for the company from $99.00 to $82.00 in a research note on Friday, June 12th. Jefferies Financial Group set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Sunday, May 10th. Truist Financial upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Friday, May 1st. Finally, Canaccord Genuity Group raised their target price on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a “buy” rating in a report on Thursday, May 7th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $100.44.

Insider Buying and Selling

In related news, insider Phillip D. Carrai sold 6,500 shares of Kratos Defense & Security Solutions 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 directly owned 215,052 shares of the company’s stock, valued at approximately $12,417,102.48. The trade was a 2.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the company’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $48.37, for a total transaction of $338,590.00. Following the transaction, the insider owned 302,126 shares of the company’s stock, valued at approximately $14,613,834.62. This represents a 2.26% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 151,778 shares of company stock worth $9,063,063 in the last quarter. Corporate insiders own 1.50% of the company’s stock.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos announced an approximate $36 million sole-source contract for a new air defense missile system, reinforcing demand for its defense hardware and boosting investor confidence in near-term revenue. Article Title
• Positive Sentiment: Wedbush initiated coverage with a Strong Buy rating and an $85 price target, calling KTOS a “misunderstood” supplier across the U.S. defense ecosystem. Article Title
• Positive Sentiment: Kratos also won an agreement to become the exclusive U.S. manufacturer for Elroy Air and entered an initial joint venture with Barq Group in Abu Dhabi, which could expand its uncrewed systems and international footprint. Article Title
• Positive Sentiment: Optimism around the proposed Golden Dome missile defense initiative has highlighted KTOS as a potential long-term supplier, adding to the bullish defense narrative. Article Title
• Positive Sentiment: Broader defense-sector strength also helped, after AeroVironment’s strong results reinforced demand trends for military drone and autonomous systems companies like Kratos. Article Title
• Neutral Sentiment: Insider Steven Fendley sold 7,000 shares under a pre-arranged 10b5-1 plan; the sale was disclosed as routine and may be more noise than a major fundamental signal. Article Title

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the company. Mcguire Capital Advisors Inc. bought a new stake in Kratos Defense & Security Solutions during the 4th quarter worth $25,000. Atlantic Union Bankshares Corp raised its position 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 purchasing an additional 380 shares during the last quarter. Vision Retirement LLC boosted its stake in shares of 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 purchasing an additional 317 shares in the last quarter. Rakuten Securities Inc. acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter valued at about $31,000. Finally, Murphy & Mullick Capital Management Corp boosted its stake in shares of Kratos Defense & Security Solutions by 115.4% during the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock valued at $32,000 after purchasing an additional 225 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors.

Kratos Defense & Security Solutions Stock Performance

The company has a market capitalization of $10.38 billion, a P/E ratio of 325.59 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The company has a fifty day moving average price of $57.17 and a two-hundred day moving average price of $77.97.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same quarter last year, the business earned $0.12 EPS. The firm’s quarterly revenue was up 22.6% on a year-over-year basis. Equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share 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.