Kratos Defense & Security Solutions (NASDAQ:KTOS) Posts Earnings Results, Beats Expectations By $0.02 EPS

Kratos Defense & Security Solutions (NASDAQ:KTOS) released its quarterly earnings data on Tuesday. The aerospace company reported $0.14 EPS for the quarter, beating analysts’ consensus estimates of $0.12 by $0.02, Briefing.com reports. The business had revenue of $347.60 million during the quarter, compared to the consensus estimate of $323.01 million. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%.The firm’s revenue was up 26.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 earnings per share. Kratos Defense & Security Solutions updated its FY 2025 guidance to EPS and its Q4 2025 guidance to EPS.

Kratos Defense & Security Solutions Stock Down 13.6%

Shares of NASDAQ:KTOS traded down $12.32 during mid-day trading on Wednesday, reaching $77.91. 6,840,360 shares of the stock were exchanged, compared to its average volume of 3,596,390. The company has a quick ratio of 3.88, a current ratio of 4.43 and a debt-to-equity ratio of 0.12. The company has a market cap of $13.15 billion, a P/E ratio of 781.44 and a beta of 1.11. Kratos Defense & Security Solutions has a one year low of $23.81 and a one year high of $112.57. The stock’s 50 day simple moving average is $83.06 and its 200-day simple moving average is $59.45.

Analyst Upgrades and Downgrades

KTOS has been the subject of a number of recent analyst reports. Citigroup reiterated an “outperform” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, October 2nd. JMP Securities boosted their target price on Kratos Defense & Security Solutions from $70.00 to $105.00 and gave the company a “market outperform” rating in a research note on Thursday, October 2nd. Benchmark increased their price target on Kratos Defense & Security Solutions from $48.00 to $50.00 and gave the stock a “buy” rating in a report on Tuesday, July 8th. Royal Bank Of Canada increased their price target on Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the stock an “outperform” rating in a report on Friday, August 8th. Finally, Robert W. Baird increased their price target on Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the stock an “outperform” rating in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $77.36.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction dated Monday, September 29th. The stock was sold at an average price of $88.88, for a total transaction of $622,160.00. Following the completion of the transaction, the insider directly owned 339,419 shares in the company, valued at approximately $30,167,560.72. This trade represents a 2.02% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, VP De Burgreen Maria Cervantes sold 6,264 shares of the stock in a transaction that occurred on Monday, September 15th. The shares were sold at an average price of $69.80, for a total value of $437,227.20. Following the transaction, the vice president directly owned 53,609 shares of the company’s stock, valued at $3,741,908.20. This trade represents a 10.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 81,716 shares of company stock valued at $6,406,245 in the last 90 days. 2.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of KTOS. Rakuten Securities Inc. acquired a new position in Kratos Defense & Security Solutions during the second quarter valued at approximately $31,000. NewEdge Advisors LLC boosted its position in Kratos Defense & Security Solutions by 64.4% during the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock valued at $39,000 after purchasing an additional 515 shares during the last quarter. Chapman Financial Group LLC acquired a new position in Kratos Defense & Security Solutions during the second quarter valued at approximately $54,000. Russell Investments Group Ltd. boosted its position in Kratos Defense & Security Solutions by 1,550.0% during the second quarter. Russell Investments Group Ltd. now owns 1,617 shares of the aerospace company’s stock valued at $75,000 after purchasing an additional 1,519 shares during the last quarter. Finally, Smartleaf Asset Management LLC boosted its position in Kratos Defense & Security Solutions by 142.8% during the second quarter. Smartleaf Asset Management LLC now owns 1,855 shares of the aerospace company’s stock valued at $85,000 after purchasing an additional 1,091 shares during the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.