Kratos Defense & Security Solutions (NASDAQ:KTOS) Price Target Cut to $46.00 by Analysts at UBS Group

Key Points

• UBS cut its price target on Kratos Defense & Security Solutions to $46 from $60 and maintained a Neutral rating; the new target implies 22.05% upside from the prior close.
• Analyst opinions remain broadly positive: MarketBeat reports a Moderate Buy consensus and an average price target of $77.90, though other brokerages have also lowered targets.
• Kratos beat quarterly earnings expectations, reporting EPS of $0.24 versus $0.21 expected, while revenue rose 35.7% year over year to $471.8 million.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price target reduced by analysts at UBS Group from $60.00 to $46.00 in a report issued on Monday, Benzinga reports. The brokerage presently has a "neutral" rating on the aerospace company's stock. UBS Group's price target indicates a potential upside of 22.05% from the stock's previous close.

Several other brokerages have also recently weighed in on KTOS. BNP Paribas Exane upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a research note on Thursday, October 8th. Jefferies Financial Group reissued a "buy" rating and issued a $50.00 price target on shares of Kratos Defense & Security Solutions in a research note on Monday. Guggenheim dropped their price target on Kratos Defense & Security Solutions from $74.00 to $67.00 and set a "buy" rating on the stock in a research note on Monday. Weiss Ratings reissued a "sell (d+)" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, November 3rd. Finally, Stifel Nicolaus dropped their price objective on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a "buy" rating on the stock in a research note on Thursday, August 6th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $77.90.

Kratos Defense & Security Solutions Price Performance

Shares of NASDAQ KTOS traded up $2.59 during midday trading on Monday, reaching $37.69. 6,378,824 shares of the company traded hands, compared to its average volume of 4,406,277. The stock's 50-day simple moving average is $43.48 and its 200-day simple moving average is $62.56. Kratos Defense & Security Solutions has a 12 month low of $31.57 and a 12 month high of $134.00. The firm has a market cap of $7.08 billion, a PE ratio of 314.08 and a beta of 1.18. The company has a debt-to-equity ratio of 0.05, a quick ratio of 4.87 and a current ratio of 5.42.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Thursday, November 5th. The aerospace company reported $0.24 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.03. Kratos Defense & Security Solutions had a return on equity of 3.18% and a net margin of 1.34%. The company had revenue of $471.80 million during the quarter, compared to analyst estimates of $471.40 million. During the same period in the previous year, the company earned $0.14 EPS. The company's revenue for the quarter was up 35.7% compared to the same quarter last year. As a group, equities analysts anticipate that Kratos Defense & Security Solutions will post 0.59 earnings per share for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, CFO Deanna H. Lund sold 7,000 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $48.78, for a total value of $341,460.00. Following the sale, the chief financial officer owned 273,511 shares in the company, valued at approximately $13,341,866.58. This trade represents a 2.50% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric M. Demarco sold 300,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the sale, the chief executive officer owned 761,632 shares of the company's stock, valued at approximately $48,995,786.56. The trade was a 28.26% decrease in their ownership of the stock. 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 quarter, insiders have sold 373,013 shares of company stock valued at $23,340,582. Corporate insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in KTOS. Bank of New York Mellon Corp lifted its holdings in Kratos Defense & Security Solutions by 12.2% in the 1st quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company's stock worth $106,893,000 after buying an additional 164,607 shares during the period. B&D White Capital Company LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 21,357.3% during the 3rd 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 during the period. Principal Financial Group Inc. boosted its holdings 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 buying an additional 342,789 shares during the last quarter. Sumitomo Mitsui Trust Group Inc. raised its stake 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 worth $71,041,000 after buying an additional 238,611 shares during the period. Finally, Bamco Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions in the second quarter valued at about $53,746,000. 75.92% of the stock is currently owned by institutional investors.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos won a contract from Gulf Space Technology to provide integrated Q/V/Ka-band gateway and antenna systems for a software-defined satellite. The project adds to Kratos’ work on the customer’s Satellite Operations Center and supports its space-business growth. Article: Kratos awarded satellite systems contract
• Positive Sentiment: Management raised its 2026 outlook and sees stronger growth in 2027, citing defense orders, hypersonics programs, and expanding drone and engine production. These plans reinforce the company’s growth case, although execution and cash generation remain important. Article: Q3 earnings call highlights
• Neutral Sentiment: RBC views Kratos as well positioned to benefit from defense spending, while noting potential pressure on defense budgets. Article: RBC assessment of Kratos
• Negative Sentiment: Canaccord Genuity cut its price target to $120 from $135, and Guggenheim lowered its target to $67 from $74. Both firms retained Buy ratings, but the reductions could weigh on sentiment.
• Negative Sentiment: Recent analysis highlights cash-flow pressure and low return on equity as risks, despite strong bookings and a record backlog. Another earnings-call summary says cash flow may remain pressured until 2029. Article: Kratos growth prospects and 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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