UBS Group Initiates Coverage on Kratos Defense & Security Solutions (NASDAQ:KTOS)

Stock analysts at UBS Group began coverage on shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) in a note issued to investors on Wednesday, Marketbeat Ratings reports. The brokerage set a “neutral” rating and a $79.00 price target on the aerospace company’s stock. UBS Group’s price target points to a potential downside of 23.17% from the company’s previous close.

Several other research firms have also commented on KTOS. BTIG Research increased their price target on shares of Kratos Defense & Security Solutions from $80.00 to $95.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. BNP Paribas Exane set a $80.00 target price on shares of Kratos Defense & Security Solutions in a research report on Tuesday, November 18th. Piper Sandler began coverage on shares of Kratos Defense & Security Solutions in a report on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target on the stock. The Goldman Sachs Group upped their price target on Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a “buy” rating in a research report on Tuesday, January 20th. Finally, Citigroup reissued a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Monday, January 12th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.83.

Kratos Defense & Security Solutions Stock Down 2.7%

Shares of NASDAQ KTOS traded down $2.84 during mid-day trading on Wednesday, reaching $102.83. 1,383,203 shares of the company were exchanged, compared to its average volume of 3,892,799. Kratos Defense & Security Solutions has a 1 year low of $23.90 and a 1 year high of $134.00. The firm has a 50-day moving average of $95.97 and a 200 day moving average of $83.80. The stock has a market cap of $17.51 billion, a price-to-earnings ratio of 791.93 and a beta of 1.09. The company has a quick ratio of 3.68, a current ratio of 4.30 and a debt-to-equity ratio of 0.04.

Insider Transactions at Kratos Defense & Security Solutions

In other news, Director Scot B. Jarvis sold 5,000 shares of the stock in a transaction on Thursday, February 12th. The shares were sold at an average price of $88.40, for a total value of $442,000.00. Following the sale, the director owned 95,417 shares in the company, valued at $8,434,862.80. This represents a 4.98% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CFO Deanna H. Lund sold 5,000 shares of the business’s stock in a transaction on Monday, February 2nd. The shares were sold at an average price of $96.87, for a total transaction of $484,350.00. Following the transaction, the chief financial officer owned 274,983 shares of the company’s stock, valued at $26,637,603.21. This represents a 1.79% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 922,407 shares of company stock valued at $75,653,893 over the last quarter. Company insiders own 2.37% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently modified their holdings of the stock. Franklin Resources Inc. lifted its holdings in Kratos Defense & Security Solutions by 29.6% in the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock valued at $236,268,000 after acquiring an additional 1,162,577 shares during the period. Geode Capital Management LLC lifted its stake in shares of Kratos Defense & Security Solutions by 3.5% in the 4th quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock valued at $337,565,000 after purchasing an additional 148,622 shares during the period. Morgan Stanley grew its position in Kratos Defense & Security Solutions by 3.9% during the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock valued at $251,345,000 after buying an additional 124,607 shares during the period. First Trust Advisors LP increased its holdings in Kratos Defense & Security Solutions by 29.5% in the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock valued at $280,402,000 after buying an additional 698,778 shares in the last quarter. Finally, Invesco Ltd. raised its position in shares of Kratos Defense & Security Solutions by 7.4% in the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock worth $278,331,000 after acquiring an additional 209,189 shares during the period. Institutional investors and hedge funds 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: Prometheus Energetics, a JV that includes Kratos, broke ground on a new solid rocket-motor manufacturing campus in Indiana — this expands Kratos’ vertically integrated supply position for propulsion/energetics, supporting longer‑term revenue & capability expansion. Prometheus Energetics Breaks Ground
• Positive Sentiment: Kratos expanded its role in hypersonics, satellites and autonomy programs — operational wins in high-priority defense areas that can drive multi-year revenue growth. Kratos Expands Role In Hypersonics
• Positive Sentiment: Kratos was awarded a contract to streamline hypersonic materials development — a technical/contract win that reinforces the company’s addressable market in hypersonics. Contract to Streamline Hypersonic Material’s Development
• Positive Sentiment: Analyst commentary ahead of earnings points to expected double‑digit revenue growth and capacity expansion across unmanned/defense segments — supports growth thesis entering the Q4 earnings period. Zacks Earnings Preview
• Neutral Sentiment: Reported short-interest data is effectively zero/ambiguous in the filings — appears to be a data/ reporting quirk and is unlikely to be a meaningful immediate driver. Neutral
• Negative Sentiment: UBS initiated coverage with a “neutral” rating and a $79 price target (roughly ~23% below recent levels) — a published target materially below the market can pressure sentiment and trigger short‑term selling. UBS Initiates Coverage
• Negative Sentiment: Two insiders disclosed sales (SVP Marie Mendoza sold 1,500 shares; Phillip D. Carrai sold 6,500 shares). While insiders still hold large positions, disclosed sales can be read as near‑term profit taking and may add to downward pressure. Insider Sale Filings Insider Sale Filings 2

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.