Kratos Defense & Security Solutions (NASDAQ:KTOS) Given New $65.00 Price Target at BTIG Research

Kratos Defense & Security Solutions (NASDAQ:KTOS) had its target price cut by research analysts at BTIG Research from $104.00 to $65.00 in a report released on Friday, Benzinga reports. The firm currently has a “buy” rating on the aerospace company’s stock. BTIG Research‘s target price points to a potential upside of 94.67% from the company’s current price.

KTOS has been the topic of a number of other research reports. Citizens Jmp lowered their target price on Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating on the stock in a research note on Monday, October 19th. Oppenheimer began coverage on Kratos Defense & Security Solutions in a report on Thursday, October 22nd. They set an “outperform” rating and a $50.00 price target for the company. Cantor Fitzgerald reduced their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating for the company in a research note on Tuesday, August 4th. Barclays initiated coverage on Kratos Defense & Security Solutions in a report on Friday, October 9th. They issued an “overweight” rating and a $90.00 price objective on the stock. Finally, Citigroup reiterated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Monday, October 19th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company’s stock. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and a consensus price target of $81.70.

Kratos Defense & Security Solutions Stock Down 7.1%

Shares of KTOS opened at $33.39 on Friday. The firm has a market cap of $6.27 billion, a P/E ratio of 196.41 and a beta of 1.18. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. Kratos Defense & Security Solutions has a 52 week low of $32.50 and a 52 week high of $134.00. The firm’s 50-day simple moving average is $43.85 and its 200 day simple moving average is $63.03.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Thursday, November 5th. The aerospace company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.03. The firm had revenue of $471.80 million during the quarter, compared to the consensus estimate of $471.40 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The business’s revenue for the quarter was up 35.7% compared to the same quarter last year. During the same period last year, the business posted $0.14 earnings per share. On average, analysts forecast that Kratos Defense & Security Solutions will post 0.59 earnings per share for the current year.

Insider Activity

In related news, 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 value of $341,460.00. Following the completion of the sale, the chief financial officer directly owned 273,511 shares in the company, valued at approximately $13,341,866.58. The trade was a 2.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 10,000 shares of the stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $63.50, for a total value of $635,000.00. Following the sale, the director directly owned 65,123 shares in the company, valued at $4,135,310.50. This represents a 13.31% decrease in their position. The SEC filing for this sale provides additional information. Over the last 90 days, insiders have sold 373,013 shares of company stock worth $23,340,582. Insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently added to or reduced their stakes in KTOS. Bank of New York Mellon Corp lifted its holdings in shares of Kratos Defense & Security Solutions by 12.2% in the first quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock worth $106,893,000 after acquiring an additional 164,607 shares during the last quarter. B&D White Capital Company LLC grew its holdings in shares of Kratos Defense & Security Solutions by 21,357.3% during the 3rd quarter. B&D White Capital Company LLC now owns 1,823,870 shares of the aerospace company’s stock valued at $77,861,000 after purchasing an additional 1,815,370 shares during the last quarter. Principal Financial Group Inc. grew its holdings in shares of Kratos Defense & Security Solutions by 48.0% during the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock valued at $74,520,000 after purchasing an additional 342,789 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. grew its holdings in shares of Kratos Defense & Security Solutions by 16.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,664,120 shares of the aerospace company’s stock valued at $71,041,000 after purchasing an additional 238,611 shares during the last quarter. Finally, Bamco Inc. NY acquired a new position in Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. 75.92% of the stock is owned by institutional investors and hedge funds.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Third-quarter revenue rose 35.7% year over year to $471.8 million, while adjusted EPS of $0.24 topped the $0.21 consensus estimate. Orders reached $1.037 billion, a 2.2-to-1 book-to-bill ratio, lifting backlog to $2.65 billion. Kratos Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted a ramp in hypersonics alongside record backlog, suggesting potential for continued growth as programs advance. Kratos Q3 2026 Earnings Call Transcript
• Positive Sentiment: Kratos also secured a $33.6 million NASA subcontract for the Space Reactor-1 Freedom project, adding to its space-related opportunities. NASA Contract and Q3 Setup
• Neutral Sentiment: Fourth-quarter revenue guidance of $480 million to $510 million has a midpoint slightly above analysts’ $493.5 million estimate; full-year revenue guidance is about $1.8 billion, in line with consensus. Kratos Beats Q3 Expectations, Updates Outlook
• Negative Sentiment: Free cash flow was negative, and GAAP operating income turned to a loss; the company reported a small GAAP net loss even as adjusted EBITDA increased. These results raise questions about how quickly growth and investment will translate into cash and reported profits. Sales Up 36%, Free Cash Flow Negative

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.