Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Sees Heavy Call Option Buying

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was the target of unusually large options trading on Wednesday. Stock investors bought 26,657 call options on the stock. This represents an increase of approximately 153% compared to the average daily volume of 10,519 call options.

Kratos Defense & Security Solutions Price Performance

Shares of NASDAQ KTOS traded down $1.85 during mid-day trading on Wednesday, reaching $41.86. 3,412,816 shares of the company were exchanged, compared to its average volume of 4,345,215. Kratos Defense & Security Solutions has a 52 week low of $40.92 and a 52 week high of $134.00. The company’s 50 day moving average price is $50.93 and its 200 day moving average price is $56.65. The stock has a market capitalization of $7.86 billion, a PE ratio of 246.41 and a beta of 1.11. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The business had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. During the same quarter in the prior year, the firm earned $0.11 earnings per share. The firm’s revenue was up 30.5% on a year-over-year basis. Sell-side analysts forecast that Kratos Defense & Security Solutions will post 0.57 earnings per share for the current fiscal year.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on KTOS. Piper Sandler raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price target on the stock in a report on Wednesday, August 5th. The Goldman Sachs Group reduced their target price on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating for the company in a research report on Tuesday, July 14th. Jefferies Financial Group lowered their price target on Kratos Defense & Security Solutions from $80.00 to $68.00 and set a “buy” rating on the stock in a report on Wednesday, September 30th. Weiss Ratings downgraded Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Finally, Truist Financial cut their price objective on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus target price of $95.06.

Insiders Place Their Bets

In other news, insider Steven S. Fendley sold 7,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $56.16, for a total transaction of $393,120.00. Following the sale, the insider directly owned 288,111 shares in the company, valued at $16,180,313.76. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric M. Demarco sold 300,000 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the sale, the chief executive officer directly owned 761,632 shares in the company, valued at approximately $48,995,786.56. The trade was a 28.26% 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 have sold 375,513 shares of company stock worth $23,597,752 over the last quarter. Insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors have recently modified their holdings of KTOS. Paradigm Capital Management Inc. NY bought a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at about $34,842,000. Bamco Inc. NY bought a new position in Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. Principal Financial Group Inc. grew its position in 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 worth $74,520,000 after acquiring an additional 342,789 shares during the last quarter. Hsbc Holdings PLC increased its stake in Kratos Defense & Security Solutions by 187.7% in the 1st quarter. Hsbc Holdings PLC now owns 47,566 shares of the aerospace company’s stock worth $3,321,000 after purchasing an additional 31,031 shares during the period. Finally, Sequoia Financial Advisors LLC increased its stake in Kratos Defense & Security Solutions by 29.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 140,856 shares of the aerospace company’s stock worth $7,023,000 after purchasing an additional 32,315 shares during the period. 75.92% of the stock is currently owned by institutional investors.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.