Kratos Defense & Security Solutions (NASDAQ:KTOS) Given New $91.00 Price Target at B. Riley Financial

Key Points

• B. Riley Financial lowered its price target for Kratos Defense & Security Solutions from $128 to $91 while maintaining a “buy” rating; the new target implied 114.58% upside from the prior close.
• Analyst sentiment remained broadly positive, with a consensus “Moderate Buy” rating and an average price target of $86.40, despite several firms recently reducing their targets.
• Kratos reported quarterly EPS of $0.21 versus $0.14 expected, while revenue rose 30.5% year over year to $458.8 million. The company’s shares opened at $42.41 and had fallen substantially from their 12-month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price target decreased by research analysts at B. Riley Financial from $128.00 to $91.00 in a research note issued to investors on Friday, Benzinga reports. The brokerage currently has a "buy" rating on the aerospace company's stock. B. Riley Financial's price objective indicates a potential upside of 114.58% from the company's previous close.

Several other equities analysts also recently weighed in on KTOS. Barclays started coverage on shares of Kratos Defense & Security Solutions in a research note on Friday, October 9th. They issued an "overweight" rating and a $90.00 price target on the stock. BNP Paribas Exane upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a report on Thursday, October 8th. 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 target price on the stock. Royal Bank Of Canada lowered their target price on Kratos Defense & Security Solutions from $80.00 to $55.00 and set an "outperform" rating on the stock in a report on Wednesday. Finally, Citizens Jmp dropped their price target on Kratos Defense & Security Solutions from $105.00 to $70.00 and set a "market outperform" rating for the company in a research report on Monday, October 19th. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company. According to MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and an average target price of $86.40.

Kratos Defense & Security Solutions Price Performance

Shares of KTOS stock opened at $42.41 on Friday. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The stock has a fifty day simple moving average of $45.46 and a two-hundred day simple moving average of $65.15. Kratos Defense & Security Solutions has a twelve month low of $36.37 and a twelve month high of $134.00. The stock has a market capitalization of $7.96 billion, a price-to-earnings ratio of 251.38 and a beta of 1.11.

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 earnings per share (EPS) for the quarter, beating analysts' consensus estimates 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 business had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. During the same quarter in the prior year, the business posted $0.11 EPS. Kratos Defense & Security Solutions's revenue for the quarter was up 30.5% compared to the same quarter last year. On average, analysts predict that Kratos Defense & Security Solutions will post 0.59 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Eric Demarco sold 300,000 shares of the company's 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 sale, the chief executive officer owned 761,632 shares in the company, valued at $48,995,786.56. This represents a 28.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 10,000 shares of the business's stock in a transaction 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 completion of the transaction, the director directly owned 65,123 shares of the company's stock, valued at approximately $4,135,310.50. This trade represents a 13.31% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 382,013 shares of company stock worth $23,806,932. Corporate 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 the stock. Bank of New York Mellon Corp acquired a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter valued at about $65,293,000. Bamco Inc. NY acquired a new position in Kratos Defense & Security Solutions in the 2nd quarter valued at $53,746,000. American Capital Management Inc. bought a new position in Kratos Defense & Security Solutions in the 2nd quarter worth $51,338,000. Paradigm Capital Management Inc. NY acquired a new position in Kratos Defense & Security Solutions during the 2nd quarter worth $34,842,000. Finally, Principal Financial Group Inc. increased its stake in shares of Kratos Defense & Security Solutions by 48.0% in the first quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock worth $74,520,000 after purchasing an additional 342,789 shares during the period. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Company Profile

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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