Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) fell 2.1% on Tuesday . The company traded as low as $61.00 and last traded at $61.99. Approximately 2,756,541 shares traded hands during trading, a decline of 38% from the average daily volume of 4,462,213 shares. The stock had previously closed at $63.29.
Key Kratos Defense & Security Solutions News
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos and GE Aerospace announced that their GEK800 engine received U.S. military type designation and an engineering, manufacturing and development contract for the Joint Air-to-Surface Standoff Missile (JASSM). The engine will serve as a second-source propulsion system for JASSM and could support future missile and uncrewed-platform production. Kratos and GE Aerospace’s GEK800 Engine Receives U.S. Military Type Designation and EMD Contract Award
- Positive Sentiment: A missionized U.S. Marine Corps Valkyrie Collaborative Combat Aircraft successfully demonstrated electronic-warfare capabilities and beyond-line-of-sight command-and-control communications. The test supports Kratos’s position in autonomous combat-aircraft and defense-networking programs, though it does not by itself represent a disclosed production award. USMC Valkyrie Demonstrates Beyond-Line-Of-Sight Command and Control
- Positive Sentiment: Recent coverage highlights Kratos’s strong second-quarter results, raised 2026 guidance, a $2.08 billion backlog and expanding production capacity. The company reportedly has substantial cash and minimal debt, providing financial flexibility to scale turbojet-engine output and other defense programs. Kratos Defense: Raising Guidance Again
- Neutral Sentiment: An analyst views KTOS as a cautious buy, arguing that resilient revenue growth and program momentum could drive further gains if margins improve. The investment case depends on converting backlog and new capacity into profitable growth.
- Negative Sentiment: Valuation remains stretched, with the stock’s implied growth expectations well above management’s near-term guidance. Investors are effectively paying for a long-term defense-growth story, leaving KTOS vulnerable to volatility if production ramps, margins or government-contract timing disappoint. Kratos: A Cautious Buy at the Inflection Point
Wall Street Analysts Forecast Growth
A number of research firms have recently commented on KTOS. BNP Paribas Exane raised their target price on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Citizens Jmp reduced their price target 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. Piper Sandler upgraded Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a report on Wednesday, August 5th. The Goldman Sachs Group lowered their price objective on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating for the company in a research report on Tuesday, July 14th. Finally, BTIG Research boosted their target price on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $99.47.
Kratos Defense & Security Solutions Stock Down 2.1%
The stock’s 50 day simple moving average is $52.59 and its two-hundred day simple moving average is $67.88. The firm has a market cap of $11.64 billion, a P/E ratio of 364.65 and a beta of 1.08. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99.
Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping 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 return on equity of 3.07% and a net margin of 2.03%.The business’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.11 EPS. As a group, research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.
Insider Buying and Selling at Kratos Defense & Security Solutions
In other news, insider Jonah Adelman sold 31,348 shares of the firm’s stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the completion of the transaction, the insider directly owned 8,000 shares in the company, valued at $456,480. This trade represents a 79.67% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $57.74, for a total value of $375,310.00. Following the transaction, the insider owned 215,052 shares of the company’s stock, valued at $12,417,102.48. The trade was a 2.93% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 433,523 shares of company stock valued at $26,783,747 in the last ninety days. Corporate insiders own 1.50% of the company’s stock.
Hedge Funds Weigh In On Kratos Defense & Security Solutions
Hedge funds have recently bought and sold shares of the company. New Age Alpha Advisors LLC lifted its stake in shares of Kratos Defense & Security Solutions by 435.1% in the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company’s stock worth $3,265,000 after buying an additional 34,973 shares in the last quarter. BNP Paribas Financial Markets increased its position in shares of Kratos Defense & Security Solutions by 245.2% during the fourth quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company’s stock valued at $45,673,000 after acquiring an additional 427,396 shares in the last quarter. M&T Bank Corp increased its position in shares of Kratos Defense & Security Solutions by 6,900.4% during the fourth quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company’s stock valued at $13,423,000 after acquiring an additional 174,305 shares in the last quarter. Principal Financial Group Inc. raised its holdings in Kratos Defense & Security Solutions by 65.2% in the 4th quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company’s stock worth $54,206,000 after acquiring an additional 281,811 shares during the last quarter. Finally, B. Metzler seel. Sohn & Co. AG purchased a new position in Kratos Defense & Security Solutions in the 4th quarter worth approximately $1,821,000. Institutional investors own 75.92% of the company’s stock.
About Kratos Defense & Security Solutions
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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