Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up After Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price gapped up before the market opened on Tuesday after Wedbush upgraded the stock to a strong-buy rating. The stock had previously closed at $46.95, but opened at $50.11. Kratos Defense & Security Solutions shares last traded at $50.9140, with a volume of 1,201,993 shares.

Several other research analysts also recently commented on the company. Clear Str raised Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. UBS Group reiterated a “neutral” rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Piper Sandler cut their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating for the company in a report on Thursday, May 7th. Citizens Jmp decreased their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research note on Friday, May 8th. Finally, BTIG Research reduced their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating on the stock in a report on Thursday, May 7th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of “Buy” and a consensus target price of $100.44.

Insider Buying and Selling

In other news, SVP Marie Mendoza sold 1,500 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, June 15th. The stock was sold at an average price of $57.93, for a total value of $86,895.00. Following the completion of the sale, the senior vice president directly owned 64,447 shares of the company’s stock, valued at approximately $3,733,414.71. The trade was a 2.27% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David M. Carter sold 4,000 shares of the business’s stock in a transaction on Friday, June 5th. The shares were sold at an average price of $59.16, for a total value of $236,640.00. Following the completion of the sale, the insider owned 70,092 shares in the company, valued at $4,146,642.72. This represents a 5.40% decrease in their position. 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. Insiders have sold 151,778 shares of company stock valued at $9,063,063 over the last quarter. 1.50% of the stock is owned by corporate insiders.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Wedbush initiated coverage with an Outperform rating and an $85 price target, with the analyst calling Kratos a “misunderstood” supplier to the broader U.S. defense ecosystem. Article Title
• Positive Sentiment: Kratos won an agreement to become the exclusive U.S. manufacturer for Elroy Air, and also disclosed an initial joint venture agreement with Barq Group in Abu Dhabi, boosting its uncrewed systems and international growth outlook. Article Title
• Positive Sentiment: Investor enthusiasm around the proposed Golden Dome missile defense initiative is highlighting Kratos as a potential long-term supplier, supporting the case for future defense spending tied to its scalable technologies. Article Title
• Positive Sentiment: Defense stocks, including KTOS, also got a lift after AeroVironment’s strong quarterly results signaled healthy demand across the sector. Article Title
• Neutral Sentiment: Additional commentary from market outlets and analyst roundups continued to spotlight Kratos as one of the notable defense names attracting investor attention, but these items were mainly reiterative rather than new catalysts. Article Title

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors have recently bought and sold shares of KTOS. Mcguire Capital Advisors Inc. acquired a new stake in shares of Kratos Defense & Security Solutions during the fourth quarter worth about $25,000. Atlantic Union Bankshares Corp grew its holdings in shares of 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 in the last quarter. Vision Retirement LLC grew its holdings in shares of Kratos Defense & Security Solutions by 288.2% in 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. purchased a new stake in Kratos Defense & Security Solutions during the 2nd quarter worth approximately $31,000. Finally, Murphy & Mullick Capital Management Corp lifted its holdings in Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after buying an additional 225 shares in the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Stock Performance

The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $9.95 billion, a price-to-earnings ratio of 312.00 and a beta of 1.07. The stock’s fifty day simple moving average is $57.17 and its 200-day simple moving average is $77.97.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.13 by $0.03. The business had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The company’s quarterly revenue was up 22.6% compared to the same quarter last year. During the same quarter in the previous year, the firm posted $0.12 earnings per share. Analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.47 EPS for the current year.

Kratos Defense & Security Solutions Company Profile

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.