Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up Following Analyst Upgrade

Posted by on Jul 2nd, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) shares gapped up before the market opened on Tuesday after Wedbush upgraded the stock to a strong-buy rating. The stock had previously closed at $46.95, but opened at $50.11. Kratos Defense & Security Solutions shares last traded at $50.9140, with a volume of 1,201,993 shares changing hands.

A number of other research analysts also recently issued reports on KTOS. Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Royal Bank Of Canada dropped their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Citizens Jmp decreased their price objective on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating for the company in a report on Friday, May 8th. UBS Group reaffirmed a “neutral” rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Finally, Truist Financial raised shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Friday, May 1st. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of “Buy” and an average target price of $100.44.

Get Our Latest Analysis on Kratos Defense & Security Solutions

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 7,000 shares of the firm’s stock in a transaction that occurred on Monday, June 29th. The stock was sold at an average price of $48.37, for a total transaction of $338,590.00. Following the completion of the transaction, the insider owned 302,126 shares of the company’s stock, valued at $14,613,834.62. This trade represents a 2.26% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the business’s stock in a transaction 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 sale, 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. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 151,778 shares of company stock valued at $9,063,063 over the last three months. 1.50% of the stock is currently owned by corporate insiders.

More Kratos Defense & Security Solutions News

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

  • Positive Sentiment: Wedbush initiated coverage with an Outperform rating and an $85 price target, with the analyst calling Kratos a “misunderstood” supplier to the broader U.S. defense ecosystem. Article Title
  • Positive Sentiment: Kratos won an agreement to become the exclusive U.S. manufacturer for Elroy Air, and also disclosed an initial joint venture agreement with Barq Group in Abu Dhabi, boosting its uncrewed systems and international growth outlook. Article Title
  • Positive Sentiment: Investor enthusiasm around the proposed Golden Dome missile defense initiative is highlighting Kratos as a potential long-term supplier, supporting the case for future defense spending tied to its scalable technologies. Article Title
  • Positive Sentiment: Defense stocks, including KTOS, also got a lift after AeroVironment’s strong quarterly results signaled healthy demand across the sector. Article Title
  • Neutral Sentiment: Additional commentary from market outlets and analyst roundups continued to spotlight Kratos as one of the notable defense names attracting investor attention, but these items were mainly reiterative rather than new catalysts. Article Title

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently made changes to their positions in KTOS. Mcguire Capital Advisors Inc. bought a new position in Kratos Defense & Security Solutions in the 4th quarter valued at approximately $25,000. Atlantic Union Bankshares Corp increased its holdings in shares of Kratos Defense & Security Solutions by 7,600.0% in 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 in the last quarter. Murphy & Mullick Capital Management Corp raised its stake in shares of Kratos Defense & Security Solutions by 115.4% in the fourth 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 lifted its holdings in shares of Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 317 shares in the last quarter. Finally, CI Investments Inc. lifted its stake in Kratos Defense & Security Solutions by 142.7% during the 3rd quarter. CI Investments Inc. now owns 432 shares of the aerospace company’s stock valued at $39,000 after acquiring an additional 254 shares during the period. Institutional investors own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Stock Performance

The business’s fifty day moving average price is $57.17 and its 200-day moving average price is $77.97. The stock has a market cap of $9.95 billion, a PE ratio of 312.00 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm had revenue of $371.00 million during the quarter, compared to analysts’ expectations of $345.00 million. During the same period in the previous year, the company earned $0.12 earnings per share. The firm’s quarterly revenue was up 22.6% on a year-over-year basis. As a group, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.47 EPS for the current fiscal year.

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.

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