Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Up 13.8% – What’s Next?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shot up 13.8% during trading on Thursday . The stock traded as high as $109.80 and last traded at $104.04. 9,574,185 shares were traded during trading, an increase of 110% from the average session volume of 4,550,187 shares. The stock had previously closed at $91.44.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: Political and budget tailwind — media and analyst coverage point to President Trump’s proposed defense spending priorities and public policy pushing contractors to reinvest in production rather than buybacks, which directly supports Kratos’ growth narrative and backlog visibility. Kratos (KTOS) shares skyrocket
• Positive Sentiment: Program win/strategic teaming — Northrop Grumman was awarded the Marine Corps CCA effort that pairs its systems with Kratos’ Valkyrie UAS, validating Kratos’ role in high‑profile manned‑unmanned teaming and potentially increasing program revenue. Northrop Grumman to Rapidly Develop Marine Corps CCA with Kratos’ Valkyrie UAS
• Positive Sentiment: Analyst support and price‑target lift — new coverage and buy ratings (Jones Trading initiation, other recent upgrades) have increased investor conviction and likely attracted fresh inflows. Jones Trading Begins Coverage
• Positive Sentiment: Options and flow — unusually large call‑option activity (roughly 10,959 calls traded) signals short‑term bullish positioning by traders and can amplify upward moves in the stock.
• Positive Sentiment: Contract and program progress — company disclosures and press coverage of new contract wins and program milestones are improving revenue visibility and supporting the growth story. Kratos Applauds Focus on Reinvestment
• Neutral Sentiment: Longer‑term growth projections — analysis (e.g., Seeking Alpha) highlights aggressive organic revenue guidance for 2025–2027 that supports upside but also frames KTOS as a volatility play; the piece is informative but mixed in near‑term trading impact. Trump’s ‘Dream Military’ Is A Game Changer For Kratos
• Neutral Sentiment: Social and media buzz — heightened attention on social platforms, aggregated commentary and AI summaries have increased visibility (some of it speculative), which can fuel momentum but may not reflect fundamentals. QuiverQuant discussion
• Negative Sentiment: Insider selling — CEO and other executives have recently sold sizeable blocks (CEO sales filed 1/6; CFO sold shares), which can be perceived negatively and increase short‑term caution among some investors. CEO SEC Filing CFO sale
• Negative Sentiment: Profitability & valuation risks — despite strong revenue growth, Kratos remains unprofitable with cash‑burn and margin pressure from fixed‑price programs and heavy capex; the stock trades at a very high multiple, amplifying downside risk if execution or margins slip. Seeking Alpha discussion

Analysts Set New Price Targets

Several analysts recently commented on KTOS shares. B. Riley cut shares of Kratos Defense & Security Solutions from a “buy” rating to a “neutral” rating and raised their price objective for the company from $72.00 to $105.00 in a research note on Wednesday, October 8th. Noble Financial reaffirmed an “outperform” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, November 6th. Stifel Nicolaus boosted their price target on Kratos Defense & Security Solutions from $70.00 to $112.00 and gave the stock a “buy” rating in a research note on Wednesday, October 15th. Robert W. Baird upped 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. Finally, Citigroup reaffirmed an “outperform” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $82.53.

Kratos Defense & Security Solutions Trading Up 13.8%

The business has a 50 day moving average of $77.37 and a 200-day moving average of $71.97. The stock has a market cap of $17.57 billion, a PE ratio of 800.37 and a beta of 1.09. The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings results on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02. The company had revenue of $347.60 million during the quarter, compared to analysts’ expectations of $323.01 million. Kratos Defense & Security Solutions had a return on equity of 3.14% and a net margin of 1.56%.The business’s revenue for the quarter was up 26.0% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.11 earnings per share. On average, analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insider Activity at Kratos Defense & Security Solutions

In related news, SVP Marie Mendoza sold 1,567 shares of the firm’s stock in a transaction that occurred on Monday, December 15th. The shares were sold at an average price of $76.27, for a total transaction of $119,515.09. Following the sale, the senior vice president owned 57,536 shares in the company, valued at approximately $4,388,270.72. This trade represents a 2.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Eric M. Demarco sold 191,699 shares of the business’s stock in a transaction on Tuesday, January 6th. The shares were sold at an average price of $90.28, for a total value of $17,306,585.72. Following the completion of the transaction, the chief executive officer owned 687,117 shares of the company’s stock, valued at $62,032,922.76. This trade represents a 21.81% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 864,865 shares of company stock worth $68,967,762 over the last three months. Company insiders own 2.37% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several hedge funds have recently made changes to their positions in KTOS. Franklin Resources Inc. lifted its position in Kratos Defense & Security Solutions by 29.6% during the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after buying an additional 1,162,577 shares during the period. ARK Investment Management LLC grew its holdings in Kratos Defense & Security Solutions by 22.2% in the 2nd quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company’s stock valued at $209,382,000 after buying an additional 818,104 shares during the period. Geode Capital Management LLC increased its stake in shares of Kratos Defense & Security Solutions by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,949,763 shares of the aerospace company’s stock valued at $183,490,000 after acquiring an additional 301,135 shares during the last quarter. First Trust Advisors LP lifted its holdings in shares of Kratos Defense & Security Solutions by 29.5% during the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock worth $280,402,000 after acquiring an additional 698,778 shares during the period. Finally, Invesco Ltd. lifted its holdings in shares of Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock worth $278,331,000 after acquiring an additional 209,189 shares during the period. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.