Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 1.9% – Should You Buy?

Posted by Francis Steltz on Sep 26th, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report)’s stock price rose 1.9% during trading on Thursday. The company traded as high as $47.36 and last traded at $47.02. Approximately 4,669,653 shares traded hands during trading, an increase of 8% from the average daily volume of 4,333,792 shares. The stock had previously closed at $46.16.

More Kratos Defense & Security Solutions News

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

Positive Sentiment: Kratos remains positioned in the expanding unmanned-systems market, alongside Draganfly, although the companies have different growth strategies. Continued demand for drones and related defense technologies supports the long-term investment case for KTOS. Kratos Defense vs. Draganfly: Which Drone Stock Has More Potential?
Neutral Sentiment: A Buffalo Mid Cap Discovery Fund investor letter cited moderation in the defense sector as a factor weighing on Kratos. The report reflects broader sector sentiment rather than a new contract, earnings revision, or change in company fundamentals. Defense Sector Moderation Weighs on Kratos Defense & Security Solutions
Neutral Sentiment: Reports showed no reported short interest as of September 24, implying that short sellers were not a significant measurable source of pressure. However, the unusual zero-share figure may reflect a data or reporting issue, limiting its usefulness as a trading signal.
Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $341,460, reducing her holdings by 2.5%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which weakens its significance as a fundamental warning, but insider selling can still weigh on investor sentiment. SEC insider transaction filing

Wall Street Analysts Forecast Growth

A number of research firms recently weighed in on KTOS. Guggenheim assumed coverage on Kratos Defense & Security Solutions in a report on Monday, September 14th. They issued a “buy” rating and a $74.00 price target for the company. The Goldman Sachs Group dropped their price objective on 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. Canaccord Genuity Group boosted their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Finally, BTIG Research increased their target price on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $98.71.

Read Our Latest Report on KTOS

Kratos Defense & Security Solutions Stock Down 3.0%

The firm has a market cap of $8.56 billion, a PE ratio of 268.35 and a beta of 1.11. The business’s 50 day moving average price is $51.64 and its 200 day moving average price is $59.22. 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 released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same quarter in the prior year, the firm earned $0.11 EPS. The company’s revenue for the quarter was up 30.5% on a year-over-year basis. On average, equities research analysts expect 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, Director Scot Jarvis sold 10,000 shares of the firm’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $63.50, for a total value of $635,000.00. Following the transaction, the director owned 65,123 shares in the company, valued at $4,135,310.50. This trade represents a 13.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eric M. Demarco sold 300,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $64.33, for a total value of $19,299,000.00. Following the completion of the sale, the chief executive officer directly owned 761,632 shares in the company, valued at $48,995,786.56. This represents a 28.26% 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. Over the last ninety days, insiders have sold 396,188 shares of company stock valued at $24,636,142. 1.50% of the stock is owned by insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of large investors have recently modified their holdings of the business. Geode Capital Management LLC boosted its position in Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after acquiring an additional 148,622 shares during the last quarter. Clearbridge Investments LLC raised its holdings in 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 valued at $110,683,000 after acquiring an additional 476,049 shares during the last quarter. Bank of New York Mellon Corp lifted its stake in Kratos Defense & Security Solutions by 12.2% in the 1st quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock worth $106,893,000 after purchasing an additional 164,607 shares in the last quarter. Goldman Sachs Group Inc. lifted its stake in 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 in the last quarter. Finally, Norges Bank purchased a new position in Kratos Defense & Security Solutions in the 4th quarter worth approximately $104,807,000. 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 is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.