Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 6.4% – Should You Buy?

Posted by Geri Gentry on Jul 1st, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report)’s stock price was up 6.4% during trading on Wednesday . The company traded as high as $54.13 and last traded at $53.04. 8,212,818 shares were traded during mid-day trading, an increase of 78% from the average session volume of 4,601,558 shares. The stock had previously closed at $49.86.

Kratos Defense & Security Solutions News Summary

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

Positive Sentiment: Wedbush initiated coverage on Kratos Defense & Security Solutions with an Outperform rating and an $85 price target, with analysts calling the company a “misunderstood” supplier to the broader U.S. defense complex. Article: Kratos Stock Surges as Analyst Frames Company as ‘Misunderstood’ Supplier to Entire US Defense Complex
Positive Sentiment: Kratos landed a major strategic win by agreeing to become the exclusive U.S. manufacturer for Elroy Air, while also striking an initial joint venture agreement with Barq Group in Abu Dhabi. The company also benefits from the U.K. government’s record defense-drone spending, which supports demand for its uncrewed systems. Article: Kratos (KTOS) Lands Elroy Air Deal As UK Drone Spending Lifts The Outlook
Positive Sentiment: Investors are also encouraged by Kratos’ positioning around the proposed Golden Dome missile defense initiative, which could become a long-term growth driver if the program advances. Article: Is Kratos Defense Becoming a Major Supplier for Golden Dome?
Positive Sentiment: The broader defense sector rallied after AeroVironment reported record quarterly revenue and profit that beat expectations, lifting sentiment toward peers such as KTOS. Article: Why Kratos (KTOS) Stock Is Up Today

Wall Street Analyst Weigh In

Several brokerages have issued reports on KTOS. Citizens Jmp cut their price objective on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research note on Friday, May 8th. BTIG Research decreased their target price on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday, May 7th. Truist Financial upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a report on Friday, May 1st. Piper Sandler reduced their price objective on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating on the stock in a research note on Thursday, May 7th. Finally, Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of “Moderate Buy” and a consensus price target of $100.44.

View Our Latest Analysis on Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Price Performance

The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The stock has a market capitalization of $9.95 billion, a price-to-earnings ratio of 312.00 and a beta of 1.04. The company has a 50-day simple moving average of $57.50 and a two-hundred day simple moving average of $78.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same quarter in the prior year, the firm earned $0.12 earnings per share. The company’s quarterly revenue was up 22.6% on a year-over-year basis. On average, equities research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 35,000 shares of the firm’s stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $58.23, for a total value of $2,038,050.00. Following the sale, the insider owned 309,087 shares in the company, valued at approximately $17,998,136.01. This trade represents a 10.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Jonah Adelman sold 31,348 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $57.06, for a total value of $1,788,716.88. Following the sale, the insider directly owned 8,000 shares in the company, valued at approximately $456,480. This trade represents a 79.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 144,778 shares of company stock worth $8,724,473 in the last quarter. 1.50% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the business. Geode Capital Management LLC grew its stake in shares of Kratos Defense & Security Solutions by 3.5% in the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after purchasing an additional 148,622 shares in the last quarter. Morgan Stanley lifted its holdings in Kratos Defense & Security Solutions by 3.9% in the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock worth $251,345,000 after purchasing an additional 124,607 shares during the period. First Trust Advisors LP grew its position in Kratos Defense & Security Solutions by 29.5% in the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock valued at $280,402,000 after buying an additional 698,778 shares in the last quarter. Invesco Ltd. grew its position in Kratos Defense & Security Solutions by 7.4% in the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock valued at $278,331,000 after buying an additional 209,189 shares in the last quarter. Finally, Alliancebernstein L.P. increased its stake in Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock valued at $247,409,000 after buying an additional 2,525,921 shares during the period. Institutional investors and hedge funds own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

(Get Free Report)

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.