Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 6.5% – Still a Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price shot up 6.5% during mid-day trading on Tuesday . The stock traded as high as $95.35 and last traded at $95.31. 3,245,432 shares changed hands during mid-day trading, a decline of 27% from the average session volume of 4,449,001 shares. The stock had previously closed at $89.53.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Won a $446 million Space Force award to deliver missile‑tracking ground systems — a material contract that boosts backlog and revenue visibility in missile defense work. Kratos wins $446 million Space Force contract for missile-tracking ground systems
• Positive Sentiment: Named prime for MACH‑TB 2.0 Task Area 1 supporting Rocket Lab’s $190M hypersonic award (20 HASTE flights) — reinforces Kratos’ hypersonics backlog and program‑level revenue visibility. Rocket Lab Secures $190M Contract for 20x HASTE Launches
• Positive Sentiment: Q4 beat and 2026 guidance implying double‑digit organic growth have prompted some analysts to lift targets — supports the premium growth/valuation story. How The Kratos Defense (KTOS) Investment Story Is Shifting
• Positive Sentiment: Sector tailwinds: drone/UAV demand (highlighted by rising drone ETFs) provides a favorable market backdrop for Kratos’ unmanned systems business. Beyond Defense: Drone ETFs Flying High Amid the Middle East Crisis
• Neutral Sentiment: Intraday momentum/coverage trackers have called out a recent rally tied to contract flow and the growth narrative — useful for sentiment but largely reiterative of confirmed awards. Kratos Defense (KTOS) jumps 6.7% as investors focus on recent contract wins
• Neutral Sentiment: Broader aerospace pieces (e.g., Astronics) highlight sector backlog and margin pressure/benefits — provides context but not a direct KTOS catalyst. Can Astronics Sustain the Margin Expansion Over the Long Term?
• Negative Sentiment: Concentrated insider selling: multiple officers/directors (including a VP and SVPs) disclosed mid‑March sales totaling large blocks — this can sap near‑term sentiment and prompt profit‑taking. Kratos insider selling alert
• Negative Sentiment: Company‑specific headwind: a new piece flags bad news from Red Cat (subsidiary/related business) that helped trigger a pullback — the article frames it as a potential buying opportunity if the issue is isolated. Why Kratos Defense Stock Dropped Today
• Negative Sentiment: Valuation risk: KTOS trades at a rich multiple; missed execution, slower contract conversion, or guidance slips could trigger outsized downside.

Analyst Upgrades and Downgrades

Several equities research analysts have recently commented on the company. BTIG Research boosted their price objective on Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the company a “buy” rating in a report on Tuesday, February 24th. Truist Financial set a $135.00 price target on shares of Kratos Defense & Security Solutions in a research report on Friday, January 9th. Canaccord Genuity Group boosted their price target on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, February 24th. UBS Group started coverage on shares of Kratos Defense & Security Solutions in a report on Wednesday, February 18th. They set a “neutral” rating and a $79.00 price objective on the stock. Finally, Stifel Nicolaus raised their price objective on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a “buy” rating in a research note on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $98.28.

Kratos Defense & Security Solutions Price Performance

The stock has a market cap of $17.35 billion, a PE ratio of 714.57 and a beta of 1.12. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06. The business has a 50 day moving average price of $100.29 and a two-hundred day moving average price of $87.23.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The business had revenue of $345.10 million for the quarter, compared to analyst estimates of $327.51 million. During the same period last year, the company posted $0.13 earnings per share. Kratos Defense & Security Solutions’s quarterly revenue was up 21.9% compared to the same quarter last year. Research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In related news, Director Scot B. Jarvis sold 5,000 shares of the business’s stock in a transaction dated Thursday, March 12th. The shares were sold at an average price of $88.60, for a total value of $443,000.00. Following the transaction, the director directly owned 85,417 shares of the company’s stock, valued at approximately $7,567,946.20. The trade was a 5.53% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction dated Monday, March 16th. The stock was sold at an average price of $89.07, for a total transaction of $578,955.00. Following the sale, the insider owned 234,292 shares of the company’s stock, valued at $20,868,388.44. This trade represents a 2.70% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 571,500 shares of company stock worth $50,770,848. 2.37% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently modified their holdings of the stock. Royal Bank of Canada increased its position in Kratos Defense & Security Solutions by 22.6% in the first quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after buying an additional 35,098 shares during the last quarter. Amundi purchased a new position in shares of Kratos Defense & Security Solutions during the 1st quarter valued at $791,000. NewEdge Advisors LLC grew its stake in shares of Kratos Defense & Security Solutions by 64.4% during the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock worth $39,000 after acquiring an additional 515 shares during the period. Jones Financial Companies Lllp grew its stake in shares of Kratos Defense & Security Solutions by 178.0% during the 1st quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock worth $108,000 after acquiring an additional 2,286 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its holdings in Kratos Defense & Security Solutions by 11.7% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock worth $11,686,000 after acquiring an additional 41,265 shares during the last quarter. Institutional investors own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

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.