Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 5.2% – Should You Sell?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price was down 5.2% on Friday . The stock traded as low as $71.70 and last traded at $71.94. Approximately 3,165,309 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 4,355,520 shares. The stock had previously closed at $75.86.

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 Analyst Weigh In

Several equities analysts have recently issued reports on the company. Cantor Fitzgerald restated an “overweight” rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Piper Sandler initiated coverage on shares of Kratos Defense & Security Solutions in a research report on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target on the stock. KeyCorp lifted their price objective on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. B. Riley Financial boosted their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a “buy” rating in a report on Friday, January 9th. Finally, The Goldman Sachs Group upped their target price on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average target price of $98.28.

Kratos Defense & Security Solutions Price Performance

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 company has a 50-day moving average of $94.97 and a 200-day moving average of $88.01. The firm has a market capitalization of $13.48 billion, a price-to-earnings ratio of 553.43 and a beta of 1.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (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 during the quarter, compared to analysts’ expectations of $327.51 million. During the same period in the prior year, the business earned $0.13 EPS. Kratos Defense & Security Solutions’s revenue for the quarter was up 21.9% compared to the same quarter last year. As a group, research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, Director Scott I. Anderson sold 15,000 shares of the business’s stock in a transaction on Monday, March 16th. The shares were sold at an average price of $89.11, for a total value of $1,336,650.00. Following the sale, the director directly owned 51,334 shares of the company’s stock, valued at approximately $4,574,372.74. The trade was a 22.61% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Stacey G. Rock sold 4,000 shares of the company’s stock in a transaction on Thursday, March 26th. The stock was sold at an average price of $76.78, for a total transaction of $307,120.00. Following the completion of the transaction, the insider directly owned 21,777 shares of the company’s stock, valued at approximately $1,672,038.06. The trade was a 15.52% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 380,500 shares of company stock valued at $35,362,668 over the last quarter. 2.37% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the company. Mcguire Capital Advisors Inc. acquired a new stake in Kratos Defense & Security Solutions in the 4th quarter valued at approximately $25,000. Atlantic Union Bankshares Corp boosted its position in Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after acquiring an additional 380 shares during the last quarter. Rakuten Securities Inc. bought a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth approximately $31,000. Bayforest Capital Ltd bought a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth approximately $32,000. Finally, Caitlin John LLC acquired a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. 75.92% of the stock is owned by institutional investors and hedge funds.

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.