Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Climb 2.2% – Should You Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was up 2.2% during trading on Tuesday. The company traded as high as $42.12 and last traded at $41.32. 4,312,889 shares traded hands during mid-day trading, a decline of 1% from the average daily volume of 4,357,684 shares. The stock had previously closed at $40.43.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: New “Outperform” ratings: Macquarie and Oppenheimer both initiated coverage of Kratos with an Outperform rating, potentially improving investor sentiment and reinforcing the bullish analyst view. Macquarie initiates coverage of Kratos Defense & Security Solutions with outperform Oppenheimer initiates coverage of Kratos Defense & Security Solutions at outperform
• Positive Sentiment: Drone-market exposure: Kratos was identified as one of three drone-technology stocks positioned to benefit from rising adoption, supporting the investment case for its unmanned systems and defense businesses. 3 Drone Technology Stocks Poised to Benefit From Rising Adoption
• Positive Sentiment: Earnings-beat expectations: Zacks noted Kratos’ strong earnings-surprise history and favorable estimate factors, suggesting a potential beat in the next quarterly report. Will Kratos Beat Estimates Again in Its Next Earnings Report?
• Positive Sentiment: Defense-sector growth outlook: Piper Sandler highlighted Kratos among defense technology companies benefiting from contract awards, expanding backlogs and demand for advanced military systems despite recent sector weakness. Best defence stocks to watch as Piper Sandler flags growth opportunities
• Neutral Sentiment: Upcoming earnings catalyst: Kratos will release third-quarter 2026 results after the market closes on November 5, followed by a conference call. Investors may be positioning ahead of the report, but the event also raises near-term volatility risk. Kratos Schedules Third Quarter 2026 Earnings Conference Call
• Negative Sentiment: Valuation and momentum concerns: KTOS has pulled back significantly from its 12-month high and trades at a very high earnings multiple, leaving the shares sensitive to any earnings miss or weaker outlook. Reports of zero short interest appear unusual and provide little actionable signal.

Analyst Ratings Changes

Several research firms recently weighed in on KTOS. Oppenheimer started coverage on shares of Kratos Defense & Security Solutions in a research report on Thursday, October 22nd. They set an “outperform” rating and a $50.00 price objective for the company. Weiss Ratings cut shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Barclays initiated coverage on Kratos Defense & Security Solutions in a research report on Friday, October 9th. They set an “overweight” rating and a $90.00 price objective for the company. Citizens Jmp cut their price target on shares of Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating on the stock in a research report on Monday, October 19th. Finally, Citigroup reiterated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Monday, October 19th. Three research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of “Moderate Buy” and a consensus price target of $89.50.

Kratos Defense & Security Solutions Stock Up 2.2%

The stock’s fifty day moving average is $46.66 and its two-hundred day moving average is $66.06. The company has a market capitalization of $7.75 billion, a PE ratio of 243.00 and a beta of 1.11. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. Kratos Defense & Security Solutions’s quarterly revenue was up 30.5% compared to the same quarter last year. During the same quarter last year, the business posted $0.11 EPS. As a group, analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.59 EPS for the current year.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, CFO Deanna Lund sold 7,000 shares of the stock in a transaction that occurred on Monday, September 21st. The shares were sold at an average price of $48.78, for a total value of $341,460.00. Following the sale, the chief financial officer directly owned 273,511 shares in the company, valued at $13,341,866.58. This represents a 2.50% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Fendley sold 7,000 shares of the business’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $56.16, for a total value of $393,120.00. Following the transaction, the insider owned 288,111 shares of the company’s stock, valued at approximately $16,180,313.76. The trade was a 2.37% 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 sold 375,013 shares of company stock worth $23,526,932 in the last 90 days. 1.50% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently bought and sold shares of the stock. Balance Wealth Partners LLC purchased a new stake in Kratos Defense & Security Solutions during the third quarter valued at about $30,000. Oppenheimer & Co. Inc. increased its stake in shares of Kratos Defense & Security Solutions by 12.6% in the third quarter. Oppenheimer & Co. Inc. now owns 27,625 shares of the aerospace company’s stock worth $1,179,000 after buying an additional 3,091 shares during the period. Verdence Capital Advisors LLC bought a new position in shares of Kratos Defense & Security Solutions during the third quarter valued at about $261,000. Apollon Wealth Management LLC lifted its holdings in Kratos Defense & Security Solutions by 33.8% in the 3rd quarter. Apollon Wealth Management LLC now owns 13,568 shares of the aerospace company’s stock worth $579,000 after buying an additional 3,426 shares during the period. Finally, Signaturefd LLC lifted its stake in Kratos Defense & Security Solutions by 6.1% in the third quarter. Signaturefd LLC now owns 7,736 shares of the aerospace company’s stock worth $330,000 after acquiring an additional 444 shares during the period. Hedge funds and other institutional investors own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

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.