Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.6% – Here’s What Happened

Posted by Geri Gentry on Aug 13th, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report)’s stock price dropped 1.6% during mid-day trading on Thursday . The stock traded as low as $61.84 and last traded at $62.79. Approximately 2,556,769 shares were traded during mid-day trading, a decline of 43% from the average daily volume of 4,476,316 shares. The stock had previously closed at $63.82.

Key Headlines Impacting Kratos Defense & Security Solutions

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

Positive Sentiment: Kratos reported strong second-quarter results, with revenue increasing 30.5% year over year to $458.8 million and adjusted earnings of $0.21 per share, exceeding consensus expectations. Management cited accelerated demand for hypersonics, jet engines and defense-support programs, as well as a growing pipeline of Department of Defense opportunities. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
Positive Sentiment: Kratos’ target systems were successfully used in a joint missile-defense exercise involving the U.S. Missile Defense Agency and Japan Maritime Self-Defense Force. The company also won a U.S. Army contract for next-generation Javelin missile seekers, strengthening its position in allied missile-defense testing and tactical weapons programs. Kratos (KTOS) Stock Is Up, What You Need To Know
Positive Sentiment: Analysts’ consensus price target implies substantial potential upside, while recent earnings-estimate increases indicate improving expectations for future growth. Kratos’ exposure to unmanned systems, hypersonics and affordable defense manufacturing remains a key attraction. Wall Street Analysts See a 66.12% Upside in Kratos
Neutral Sentiment: Investor commentary highlights Kratos’ exceptional three-year stock performance and strong defense-contract momentum, but notes that the shares appear expensive on sales and valuation measures. This raises the risk of profit-taking or volatility even as the long-term outlook remains favorable. Kratos Stock Looks Strong On Returns But Rich On Sales
Negative Sentiment: Supply-chain constraints and the company’s relatively modest profitability remain risks. With a very high earnings multiple, investors may demand continued contract wins and rapid execution, making the stock vulnerable when growth expectations are not exceeded. Kratos Defense Stock Gains 21.4% in 3 Months

Wall Street Analysts Forecast Growth

KTOS has been the topic of several research reports. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and dropped their price target for the company from $99.00 to $82.00 in a research report on Friday, June 12th. 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 for the company in a research note on Tuesday, July 14th. Royal Bank Of Canada lowered their price target on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating for the company in a research report on Thursday, May 7th. Clear Str raised shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. Finally, BNP Paribas Exane upped their price objective 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. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions has an average rating of “Moderate Buy” and an average target price of $99.47.

Get Our Latest Analysis on Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Price Performance

The firm’s fifty day simple moving average is $52.37 and its 200-day simple moving average is $68.93. The firm has a market capitalization of $11.79 billion, a PE ratio of 369.35 and a beta of 1.08. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The business’s revenue for the quarter was up 30.5% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.11 earnings per share. On average, research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 35,000 shares of the stock in a transaction on Monday, June 8th. The stock was sold at an average price of $58.23, for a total transaction of $2,038,050.00. Following the sale, the insider directly owned 309,087 shares in the company, valued at approximately $17,998,136.01. This trade represents a 10.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Jonah Adelman sold 31,348 shares of Kratos Defense & Security Solutions stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total value of $1,788,716.88. Following the completion of the sale, the insider directly owned 8,000 shares of the company’s stock, valued at approximately $456,480. The trade was a 79.67% decrease in their position. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders sold 144,036 shares of company stock valued at $8,034,017. Insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently bought and sold shares of KTOS. Corient Private Wealth LLC boosted its position in Kratos Defense & Security Solutions by 7,701.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company’s stock worth $120,966,000 after purchasing an additional 1,573,123 shares during the last quarter. Norges Bank purchased a new stake in shares of Kratos Defense & Security Solutions during the 4th quarter valued at about $104,807,000. Bank of New York Mellon Corp purchased a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter valued at about $65,293,000. Goldman Sachs Group Inc. lifted its stake in shares of Kratos Defense & Security Solutions by 66.0% in the 4th quarter. Goldman Sachs Group Inc. now owns 1,398,525 shares of the aerospace company’s stock worth $106,162,000 after purchasing an additional 556,036 shares during the period. Finally, Clearbridge Investments LLC lifted its stake in shares of Kratos Defense & Security Solutions by 48.5% in the 4th quarter. Clearbridge Investments LLC now owns 1,458,084 shares of the aerospace company’s stock worth $110,683,000 after purchasing an additional 476,049 shares during the period. Hedge funds and other institutional investors 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.