Kratos Defense & Security Solutions (NASDAQ:KTOS) Now Covered by Oppenheimer

Key Points

• Oppenheimer initiated coverage of Kratos Defense & Security Solutions with an “outperform” rating and a $50 price target, implying approximately 29% upside from the prior close.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and an average price target of $90.20, despite several firms recently lowering their targets.
• Kratos reported quarterly revenue of $458.8 million and EPS of $0.21, exceeding estimates while revenue grew 30.5% year over year; the stock opened at $38.74 and has declined substantially from its 52-week high.

Analysts at Oppenheimer began coverage on shares of Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) in a research note issued on Thursday, Briefing.com reports. The firm set an "outperform" rating and a $50.00 price target on the aerospace company's stock. Oppenheimer's price objective points to a potential upside of 29.07% from the company's previous close.

Other analysts have also issued reports about the stock. Truist Financial cut their target price on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating on the stock in a research note on Thursday, August 13th. Wedbush started coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They issued an "outperform" rating and a $85.00 price target for the company. The Goldman Sachs Group decreased their price target on shares of Kratos Defense & Security Solutions from $88.00 to $77.00 and set a "buy" rating for the company in a research note on Monday, October 12th. Guggenheim initiated coverage on shares of Kratos Defense & Security Solutions in a report on Monday, September 14th. They set a "buy" rating and a $74.00 price target for the company. Finally, Citigroup restated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Monday. Two equities research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus price target of $90.20.

Kratos Defense & Security Solutions Trading Down 0.6%

Shares of KTOS stock opened at $38.74 on Thursday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The stock has a market capitalization of $7.27 billion, a P/E ratio of 227.88 and a beta of 1.11. The company has a 50 day moving average price of $47.81 and a 200 day moving average price of $53.89. Kratos Defense & Security Solutions has a fifty-two week low of $37.84 and a fifty-two week high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its 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 for the quarter, compared to the consensus estimate of $410.36 million. During the same period in the prior year, the firm earned $0.11 EPS. The firm's revenue for the quarter was up 30.5% on a year-over-year basis. Equities research analysts predict that Kratos Defense & Security Solutions will post 0.58 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the company's stock in a transaction on Thursday, October 15th. The shares were sold at an average price of $39.86, for a total value of $259,090.00. Following the completion of the transaction, the insider owned 169,196 shares in the company, valued at $6,744,152.56. This represents a 3.70% decrease in their ownership of the stock. 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 Jarvis sold 10,000 shares of the firm's stock in a transaction dated 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 directly owned 65,123 shares in the company, valued at approximately $4,135,310.50. The trade was a 13.31% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 382,013 shares of company stock valued at $23,856,842 over the last quarter. 1.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the company. Harbor Investment Advisory LLC purchased a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at approximately $25,000. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after purchasing an additional 317 shares during the last quarter. Compass Financial Management LLC purchased a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth $34,000. Versant Capital Management Inc boosted its position in shares of Kratos Defense & Security Solutions by 61.9% in the second quarter. Versant Capital Management Inc now owns 696 shares of the aerospace company's stock worth $35,000 after acquiring an additional 266 shares during the last quarter. Finally, IMG Wealth Management Inc. raised its holdings in shares of Kratos Defense & Security Solutions by 427.0% in the 1st quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company's stock worth $37,000 after purchasing an additional 427 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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