Barclays Has Lowered Expectations for Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price

Key Points

• Barclays cut its KTOS price target from $90 to $80 but maintained an “overweight” rating, implying 114.5% upside from the prior close.
• Analyst sentiment remains broadly positive: MarketBeat reports a “Moderate Buy” consensus and an average target of $77.40, despite several firms lowering their targets.
• Kratos beat quarterly EPS expectations and reported revenue up 35.7% year over year; however, the stock was trading down 1.1%, and the article also notes near-term supply-chain and cash-flow risks.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price objective reduced by analysts at Barclays from $90.00 to $80.00 in a report issued on Tuesday, Benzinga reports. The firm presently has an "overweight" rating on the aerospace company's stock. Barclays's target price points to a potential upside of 114.52% from the company's previous close.

Several other equities analysts have also recently issued reports on KTOS. Cantor Fitzgerald decreased their price objective on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating for the company in a report on Tuesday, August 4th. Truist Financial decreased their price objective on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating on the stock in a report on Thursday, August 13th. BNP Paribas Exane upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a research note on Thursday, October 8th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Monday, October 19th. Finally, Oppenheimer initiated coverage on Kratos Defense & Security Solutions in a report on Thursday, October 22nd. They issued an "outperform" rating and a $50.00 price objective for the company. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus price target of $77.40.

Kratos Defense & Security Solutions Trading Down 1.1%

NASDAQ:KTOS opened at $37.29 on Tuesday. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions has a 12 month low of $31.57 and a 12 month high of $134.00. The company has a market cap of $7.00 billion, a PE ratio of 311.60 and a beta of 1.18. The company has a 50 day simple moving average of $43.20 and a two-hundred day simple moving average of $62.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its quarterly earnings data on Thursday, November 5th. The aerospace company reported $0.24 earnings per share for the quarter, beating analysts' consensus estimates of $0.21 by $0.03. The firm had revenue of $471.80 million for the quarter, compared to analysts' expectations of $471.40 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The business's quarterly revenue was up 35.7% on a year-over-year basis. During the same period in the previous year, the firm earned $0.14 EPS. Research analysts forecast that Kratos Defense & Security Solutions will post 0.59 earnings per share for the current year.

Insiders Place Their Bets

In related news, CFO Deanna Lund sold 7,000 shares of the stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $40.00, for a total transaction of $280,000.00. Following the sale, the chief financial officer owned 266,740 shares in the company, valued at $10,669,600. This represents a 2.56% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip Carrai sold 6,500 shares of the business's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $39.86, for a total value of $259,090.00. Following the transaction, the insider owned 169,196 shares of the company's stock, valued at approximately $6,744,152.56. This represents a 3.70% 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. In the last quarter, insiders have sold 373,013 shares of company stock valued at $23,340,582. Company insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in KTOS. B&D White Capital Company LLC grew its holdings in shares of Kratos Defense & Security Solutions by 21,357.3% during the third quarter. B&D White Capital Company LLC now owns 1,823,870 shares of the aerospace company's stock valued at $77,861,000 after buying an additional 1,815,370 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. grew its position in shares of Kratos Defense & Security Solutions by 16.7% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,664,120 shares of the aerospace company's stock valued at $71,041,000 after purchasing an additional 238,611 shares during the last quarter. Bank of New York Mellon Corp grew its stake in shares of Kratos Defense & Security Solutions by 12.2% in the first quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company's stock worth $106,893,000 after acquiring an additional 164,607 shares during the last quarter. Bamco Inc. NY bought a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth about $53,746,000. Finally, Principal Financial Group Inc. lifted its position in shares of Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock worth $74,520,000 after acquiring an additional 342,789 shares during the period. Institutional investors and hedge funds own 75.92% of the company's stock.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos reported Q3 revenue of $471.8 million, up 35.7% year over year, and non-GAAP earnings per share of $0.24, ahead of analysts’ consensus. Management also raised its 2026 outlook and pointed to stronger growth in 2027, supported by defense orders, hypersonics and expanding drone and engine production. Article: KTOS Q3 2026 deep dive
• Positive Sentiment: A long-term agreement with Seagate Space will use Kratos’ Gateway offshore launch platform, supporting a planned first mission in 2027 and multiple additional launches in later years. This could create a longer-term growth opportunity in mobile launch services. Article: Kratos and Seagate Space partnership
• Positive Sentiment: Kratos won a contract to provide integrated Q/V/Ka-band gateway and antenna systems for Gulf Space Technology’s software-defined satellite, adding to its satellite infrastructure work. Article: Gulf Space Technology contract
• Neutral Sentiment: UBS cut its price target to $46 and kept a neutral rating. Canaccord and Guggenheim also lowered their targets but maintained buy ratings, indicating analysts remain constructive while tempering valuations.
• Negative Sentiment: Management flagged supply-chain risks, while cash flow is expected to remain pressured in the near term. These execution and financial concerns could weigh on results even as production ramps. Article: Q3 results and supply chain risks

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions is a defense technology company that develops products and services for U.S. government agencies, national security organizations, and allied governments. Its work spans unmanned systems, satellite communications, microwave electronics, command-and-control systems, and training and simulation.

The company's offerings include unmanned aerial vehicles and target drones, as well as systems and components used in space and satellite communications and other defense applications.

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