Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 2.1% Higher – Time to Buy?

Posted by Geri Gentry on Aug 11th, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) was up 2.1% on Tuesday . The stock traded as high as $63.83 and last traded at $63.73. Approximately 3,011,935 shares traded hands during mid-day trading, a decline of 33% from the average session volume of 4,493,131 shares. The stock had previously closed at $62.42.

Kratos Defense & Security Solutions News Roundup

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

Positive Sentiment: Kratos target systems were used in a successful Missile Defense Agency joint flight-test experiment. The validation supports demand for the company’s target systems and other defense-testing technologies. Kratos Target Systems Utilized During Successful MDA-Joint Flight Test Experiment-01 Mission
Positive Sentiment: Noble Financial raised its FY2026 EPS forecast for KTOS to $0.63 from $0.59 and increased its FY2027 estimate to $0.84 from $0.83. Both forecasts remain above the current-year consensus estimate of $0.48, signaling expectations for continued earnings growth. Noble Financial Issues Optimistic Forecast for KTOS Earnings
Positive Sentiment: Analysts set a reported price target of $102.41 for Kratos, implying substantial potential appreciation from recent trading levels and reinforcing the broader bullish view on the defense contractor. Analysts Set Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) PT at $102.41
Neutral Sentiment: Noble Financial’s overall outlook remains positive, with estimates of $0.22 EPS for Q4 2026, $0.63 for FY2026 and $0.84 for FY2027; the forecasts suggest growth but also indicate that expected profitability remains modest.
Negative Sentiment: Noble Financial lowered its Q4 2026 EPS forecast to $0.22 from $0.26, highlighting potential near-term pressure. KTOS also trades at a high earnings multiple, making the stock sensitive to any earnings or execution disappointment.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on KTOS shares. BNP Paribas Exane increased their price target on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. The Goldman Sachs Group decreased their price target on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a report on Tuesday, July 14th. Clear Str upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, UBS Group reissued a “neutral” rating and set a $82.00 price objective on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $101.29.

View Our Latest Stock Analysis on KTOS

Kratos Defense & Security Solutions Trading Up 2.1%

The stock has a market capitalization of $11.96 billion, a P/E ratio of 374.88 and a beta of 1.08. The stock’s fifty day moving average price is $52.25 and its two-hundred day moving average price is $69.68. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm’s quarterly revenue was up 30.5% compared to the same quarter last year. During the same quarter last year, the firm earned $0.11 EPS. Equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current year.

Insider Buying and Selling

In related news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $52.13, for a total transaction of $338,845.00. Following the transaction, the insider directly owned 221,550 shares in the company, valued at $11,549,401.50. This trade represents a 2.85% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, June 1st. The stock was sold at an average price of $63.74, for a total value of $318,700.00. Following the completion of the transaction, the chief financial officer directly owned 290,161 shares in the company, valued at $18,494,862.14. This trade represents a 1.69% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 144,036 shares of company stock valued at $8,034,017 over the last three months. 1.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several hedge funds have recently made changes to their positions in KTOS. Bank of New York Mellon Corp bought a new stake in Kratos Defense & Security Solutions in the 2nd quarter worth $65,293,000. Ausbil Investment Management Ltd bought a new position in shares of Kratos Defense & Security Solutions during the second quarter valued at about $296,000. Hennion & Walsh Asset Management Inc. boosted its holdings in shares of Kratos Defense & Security Solutions by 4.0% during the second quarter. Hennion & Walsh Asset Management Inc. now owns 72,660 shares of the aerospace company’s stock worth $3,623,000 after purchasing an additional 2,808 shares during the period. Polianta Ltd purchased a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth about $1,600,000. Finally, Assenagon Asset Management S.A. grew its stake in shares of Kratos Defense & Security Solutions by 80.2% in the second quarter. Assenagon Asset Management S.A. now owns 70,254 shares of the aerospace company’s stock worth $3,503,000 after purchasing an additional 31,273 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

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.