Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 5.2% – What’s Next?

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) traded down 5.2% during trading on Thursday . The stock traded as low as $75.15 and last traded at $75.86. 3,009,518 shares changed hands during trading, a decline of 31% from the average session volume of 4,375,738 shares. The stock had previously closed at $79.98.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos won a Naval Surface Warfare Center (NSWC PHD) contract for production and delivery of up to 36 Oriole™ solid rocket motors and three Thrust Vector Control kits (funded base plus options), a $49M award that supports hypersonic and missile test programs and adds near-term funded backlog. Kratos Awarded $49 Million NSWC PHD Contract for Oriole™ Rocket Motor and Thrust Vector Control Systems to Support Navy Missile and Test Programs
• Positive Sentiment: Kratos added industry veteran David King to its board; his aerospace and defense background (Dynetics, NASA-related programs) strengthens governance and program-level experience as Kratos expands propulsion and hypersonics work. Kratos Defense & Security Solutions, Inc.: Kratos Announces Appointment of David King to Board of Directors
• Positive Sentiment: Analysts and coverage highlight Kratos’ propulsion systems business as a growth vector — demand for compact, lower-cost engines for drones, missiles and next‑gen platforms could lift margins and revenue over time. Can Kratos Defense’s Propulsion Systems Business Drive Growth?
• Neutral Sentiment: Media and TV attention (notably Jim Cramer) has driven strong retail interest and a large multi-month rally; that attention can sustain volume and momentum but isn’t the same as new contracts or bookings. Kratos (KTOS) stock has surged since Jim Cramer said he liked “the story very much”
• Negative Sentiment: Valuation and momentum risk: KTOS has run up sharply (large YTD/1‑year gains), leaving it exposed to profit-taking and heightened volatility—earnings metrics show a very high P/E and the stock is pulling back from recent moving‑average levels. This helps explain today’s decline as investors reassess near-term upside.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on the stock. JonesTrading initiated coverage on shares of Kratos Defense & Security Solutions in a research report on Monday, January 5th. They issued a “buy” rating for the company. BTIG Research boosted their price target on shares of Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the company a “buy” rating in a report on Tuesday, February 24th. B. Riley Financial upped their price target on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. Canaccord Genuity Group increased their price objective on Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the stock a “buy” rating in a report on Tuesday, February 24th. Finally, Piper Sandler started coverage on Kratos Defense & Security Solutions in a research report on Wednesday, January 21st. They set a “neutral” rating and a $99.00 price objective for the company. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have given a Hold rating to the company. Based on data from MarketBeat.com, Kratos Defense & Security Solutions presently has a consensus rating of “Moderate Buy” and an average price target of $98.28.

Kratos Defense & Security Solutions Trading Down 5.2%

The company’s fifty day moving average is $94.97 and its 200-day moving average is $87.85. The company has a current ratio of 4.06, a quick ratio of 3.46 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $13.48 billion, a P/E ratio of 553.43 and a beta of 1.12.

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

Insider Activity

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $89.07, for a total value 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. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, insider Stacey G. Rock sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Thursday, March 26th. The stock was sold at an average price of $76.78, for a total value of $307,120.00. Following the completion of the transaction, the insider directly owned 21,777 shares in the company, valued at approximately $1,672,038.06. This represents a 15.52% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 380,500 shares of company stock worth $35,362,668 over the last 90 days. Company insiders own 2.37% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several large investors have recently bought and sold shares of the stock. Mcguire Capital Advisors Inc. acquired a new stake in Kratos Defense & Security Solutions in the 4th quarter worth $25,000. Atlantic Union Bankshares Corp lifted its stake 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 buying an additional 380 shares during the period. Rakuten Securities Inc. bought a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at about $31,000. Bayforest Capital Ltd acquired a new stake in Kratos Defense & Security Solutions during the third quarter worth about $32,000. Finally, Caitlin John LLC acquired a new stake in Kratos Defense & Security Solutions during the third quarter worth about $32,000. 75.92% of the stock is currently owned by institutional investors and hedge funds.

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.