Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) shot up 1.9% on Tuesday. The stock traded as high as $41.72 and last traded at $40.99. Approximately 3,226,426 shares traded hands during mid-day trading, a decline of 26% from the average daily volume of 4,341,057 shares. The stock had previously closed at $40.23.
Trending Headlines about Kratos Defense & Security Solutions
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: KeyBanc maintained an “overweight” rating and still sees about 83% upside from the cited share price, despite lowering its target. The article also notes Kratos has raised its revenue outlook twice, a sign of continued business momentum. Article: Kratos Is Down 46% in 2026. KeyBanc Cut Its Target but Still Sees 83% Upside
- Positive Sentiment: Pre-earnings commentary points to manufacturing expansion, rising hypersonics revenue and strong defense bookings as potential supports for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?
- Neutral Sentiment: One earnings-season outlook highlights defense stocks expected to beat estimates, but the available article summary does not specify Kratos’s individual forecast or expected results. Article: 4 Defense Stocks Poised to Beat Expectations This Earnings Season
- Negative Sentiment: KeyBanc cut its price target from $130 to $75. Although the firm remains bullish, the steep reduction may weigh on sentiment; the article also says KTOS is down 46% in 2026. Article: KeyCorp rating and price-target update
- Negative Sentiment: Currency pressures could constrain margins, tempering otherwise constructive expectations for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?
Analyst Ratings Changes
Several equities research analysts have recently commented on the stock. Zacks Research raised shares of Kratos Defense & Security Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 23rd. Piper Sandler cut their price objective on shares of Kratos Defense & Security Solutions from $75.00 to $61.00 and set an “overweight” rating for the company in a report on Friday, October 23rd. Citizens Jmp cut their target price on shares of Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating for the company in a report on Monday, October 19th. Weiss Ratings cut Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. Finally, Rothschild & Co Redburn started coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, October 6th. They issued a “buy” rating and a $70.00 price objective for the company. Three investment analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $83.65.
Read Our Latest Report on Kratos Defense & Security Solutions
Kratos Defense & Security Solutions Price Performance
The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The company has a market capitalization of $7.69 billion, a PE ratio of 241.12 and a beta of 1.11. The stock’s 50 day simple moving average is $44.82 and its 200-day simple moving average is $64.36.
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 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. The company 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%. Kratos Defense & Security Solutions’s quarterly revenue was up 30.5% on a year-over-year basis. During the same period last year, the firm earned $0.11 earnings per share. As a group, equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current fiscal year.
Insider Buying and Selling
In related news, SVP Marie Mendoza sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $48.50, for a total value of $48,500.00. Following the completion of the sale, the senior vice president owned 61,200 shares of the company’s stock, valued at approximately $2,968,200. The trade was a 1.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $56.16, for a total value of $393,120.00. Following the sale, the insider owned 288,111 shares of the company’s stock, valued at approximately $16,180,313.76. This trade represents a 2.37% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 377,013 shares of company stock worth $23,564,182. 1.50% of the stock is currently owned by insiders.
Institutional Trading of Kratos Defense & Security Solutions
Several large investors have recently added to or reduced their stakes in the company. Vision Retirement LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares in the last quarter. Harbor Investment Advisory LLC purchased a new stake in Kratos Defense & Security Solutions in the 2nd quarter worth about $25,000. IMG Wealth Management Inc. raised its stake in shares of Kratos Defense & Security Solutions by 427.0% during the 1st quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock valued at $37,000 after purchasing an additional 427 shares during the period. Geneos Wealth Management Inc. raised its position in shares of Kratos Defense & Security Solutions by 333.3% in the first quarter. Geneos Wealth Management Inc. now owns 650 shares of the aerospace company’s stock worth $46,000 after buying an additional 500 shares in the last quarter. Finally, Compass Financial Management LLC purchased a new position in Kratos Defense & Security Solutions in the second quarter worth $34,000. 75.92% of the stock is owned by institutional investors.
About Kratos Defense & Security Solutions
Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.
Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.
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