Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) shares rose 4.4% during trading on Monday . The company traded as high as $49.72 and last traded at $49.45. 2,747,338 shares changed hands during mid-day trading, a decline of 39% from the average daily volume of 4,497,442 shares. The stock had previously closed at $47.35.
Key Headlines Impacting Kratos Defense & Security Solutions
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos completed its $50 million, 68,000-square-foot Indiana Payload Integration Facility ahead of schedule. The site will manufacture, integrate and test experimental hypersonic payloads, support programs such as MACH-TB, handle up to six payloads simultaneously and create more than 100 high-tech jobs. The facility strengthens Kratos’ hypersonics infrastructure, although the release did not quantify near-term revenue. Kratos Completes Construction of $50 Million State-of-the-Art Hypersonic Systems Payload Integration Facility
- Positive Sentiment: The company delivered turbomachinery for Lockheed Martin’s ramjet propulsion system, marking progress on an important defense-program component and reinforcing Kratos’ role as a supplier of advanced propulsion technology. Financial terms and the potential earnings contribution were not disclosed. Kratos Defense Says it Delivered Turbomachinery for Lockheed Martin’s Ramjet Propulsion System
- Positive Sentiment: An analyst described Kratos as offering “outstanding relative value” compared with Anduril and suggested the stock could nearly triple. Recent analyst targets supplied in the coverage range from $75 to $105, well above the recent trading level, indicating continued long-term optimism about defense and hypersonics growth. Kratos Offers Outstanding Relative Value Over Anduril
- Neutral Sentiment: Ahead of next week’s earnings release, analysts expect earnings to grow, but Zacks said KTOS lacks the combination of factors that typically precedes a likely earnings beat. That raises the risk of a muted reaction despite the company’s previous quarterly revenue growth and EPS outperformance. Kratos Earnings Expected to Grow
- Negative Sentiment: Reported insider activity shows extensive selling and no purchases over the past six months. While sales may reflect scheduled transactions or diversification, the absence of insider buying can reinforce investor caution, particularly given KTOS’s elevated valuation and low profit margin.
Wall Street Analyst Weigh In
Several research analysts have weighed in on the company. Royal Bank Of Canada reduced their target price on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. The Goldman Sachs Group lowered their price target on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating for the company in a report on Tuesday, July 14th. BTIG Research dropped their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating on the stock in a research report on Thursday, May 7th. Citigroup reiterated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday. Finally, JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and decreased their price objective for the company from $99.00 to $82.00 in a research report on Friday, June 12th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $101.29.
Kratos Defense & Security Solutions Stock Performance
The stock’s 50 day moving average is $53.37 and its two-hundred day moving average is $74.03. The stock has a market capitalization of $8.47 billion, a price-to-earnings ratio of 265.23 and a beta of 1.07. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04.
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 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. During the same quarter last year, the business posted $0.12 EPS. The company’s revenue for the quarter was up 22.6% on a year-over-year basis. Analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current fiscal year.
Insider Activity at Kratos Defense & Security Solutions
In other news, insider Steven S. Fendley sold 35,000 shares of the business’s stock in a transaction 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 of the company’s stock, valued at $17,998,136.01. The trade was a 10.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $63.74, for a total transaction of $318,700.00. Following the transaction, the chief financial officer owned 290,161 shares of the company’s stock, valued at $18,494,862.14. The trade was a 1.69% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 137,036 shares of company stock worth $7,780,257. 1.50% of the stock is currently owned by corporate insiders.
Institutional Investors Weigh In On Kratos Defense & Security Solutions
Several institutional investors and hedge funds have recently added to or reduced their stakes in the business. Mcguire Capital Advisors Inc. acquired a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter valued at about $25,000. Atlantic Union Bankshares Corp increased its position in shares of 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 purchasing an additional 380 shares during the last quarter. Murphy & Mullick Capital Management Corp increased its position in shares of Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after purchasing an additional 225 shares during the last quarter. Vision Retirement LLC raised its stake in shares of Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Kratos Defense & Security Solutions during the 4th quarter worth approximately $37,000. 75.92% of the stock is owned by institutional investors.
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.
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