Kratos Defense & Security Solutions Sees Unusually High Options Volume (NASDAQ:KTOS)

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was the recipient of some unusual options trading on Friday. Stock investors acquired 17,897 call options on the company. This represents an increase of approximately 44% compared to the average daily volume of 12,452 call options.

Analysts Set New Price Targets

Several research analysts have recently commented on the stock. Oppenheimer initiated coverage on shares of Kratos Defense & Security Solutions in a report on Thursday, October 22nd. They issued an “outperform” rating and a $50.00 price target for the company. Barclays started coverage on shares of Kratos Defense & Security Solutions in a research note on Friday, October 9th. They set an “overweight” rating and a $90.00 price objective on the stock. Citizens Jmp cut their target price on shares of Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating on the stock in a report on Monday, October 19th. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Finally, Piper Sandler lowered their target price on Kratos Defense & Security Solutions from $75.00 to $61.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $81.70.

Kratos Defense & Security Solutions Stock Performance

KTOS stock traded up $0.68 during trading on Friday, reaching $34.07. 3,522,707 shares of the company’s stock were exchanged, compared to its average volume of 4,381,687. Kratos Defense & Security Solutions has a 1-year low of $31.57 and a 1-year high of $134.00. The firm has a market cap of $6.40 billion, a PE ratio of 201.12 and a beta of 1.18. The company’s fifty day moving average price is $43.85 and its 200-day moving average price is $63.03. 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 issued its quarterly earnings data on Thursday, November 5th. The aerospace company reported $0.24 earnings per share for the quarter, beating analysts’ consensus estimates of $0.21 by $0.03. The business had revenue of $471.80 million for the quarter, compared to analysts’ expectations of $471.40 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company’s revenue was up 35.7% on a year-over-year basis. During the same period in the previous year, the business earned $0.14 earnings per share. On average, research analysts expect that Kratos Defense & Security Solutions will post 0.59 EPS for the current fiscal year.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos reported Q3 revenue of $471.8 million, up 35.7% year over year, and adjusted earnings of $0.24 per share, beating the $0.21 consensus. Its $1.037 billion in bookings resulted in a 2.2-to-1 book-to-bill ratio, lifting backlog to $2.65 billion. Kratos Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Q4 revenue guidance of $480 million to $510 million has a midpoint slightly above analysts’ expectations. The company also highlighted a ramp in hypersonics activity, supporting the growth outlook. Kratos Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite adjusted earnings growth, free cash flow was negative and GAAP operating income turned to a loss; Kratos also reported a small net loss. These results raise questions about the quality and cash conversion of its growth. Kratos Sales Up 36%, Free Cash Flow Negative
• Negative Sentiment: BTIG cut its price target to $65 from $104, though it maintained a Buy rating. The reduction signals a more cautious valuation view even as the analyst remains bullish. BTIG Research Ratings

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, insider Phillip Carrai sold 6,500 shares of the business’s stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $39.86, for a total value of $259,090.00. Following the completion of the sale, the insider directly owned 169,196 shares of the company’s stock, valued at $6,744,152.56. The trade was a 3.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna Lund sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, October 26th. The shares were sold at an average price of $40.00, for a total value of $280,000.00. Following the completion of the sale, the chief financial officer owned 266,740 shares of the company’s stock, valued at $10,669,600. This trade represents a 2.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 373,013 shares of company stock valued at $23,340,582. Corporate insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. CENTRAL TRUST Co raised its position in Kratos Defense & Security Solutions by 10.0% in the third quarter. CENTRAL TRUST Co now owns 7,126 shares of the aerospace company’s stock worth $304,000 after acquiring an additional 649 shares in the last quarter. Fifth Third Bancorp lifted its holdings in Kratos Defense & Security Solutions by 57.2% in the 3rd quarter. Fifth Third Bancorp now owns 62,654 shares of the aerospace company’s stock valued at $2,675,000 after acquiring an additional 22,792 shares during the last quarter. Jacobi Capital Management LLC acquired a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at about $52,000. Gables Capital Management Inc. boosted its position in shares of Kratos Defense & Security Solutions by 6.6% during the 3rd quarter. Gables Capital Management Inc. now owns 35,435 shares of the aerospace company’s stock valued at $1,513,000 after purchasing an additional 2,185 shares in the last quarter. Finally, Fulcrum Asset Management LLP boosted its position in shares of Kratos Defense & Security Solutions by 5,877.9% during the 3rd quarter. Fulcrum Asset Management LLP now owns 10,282 shares of the aerospace company’s stock valued at $443,000 after purchasing an additional 10,110 shares in the last quarter. 75.92% of the stock is owned by institutional investors.

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.