Rothschild & Co Redburn Upgrades Kratos Defense & Security Solutions (NASDAQ:KTOS) to Strong-Buy

Key Points

• Rothschild & Co Redburn upgraded Kratos Defense & Security Solutions (NASDAQ: KTOS) to “strong buy.” Analysts overall maintain a “Moderate Buy” consensus, with an average price target of $95.06.
• Kratos reported quarterly revenue of $458.8 million, up 30.5% year over year, and EPS of $0.21, exceeding the $0.14 consensus estimate.
• KTOS shares opened at $43.71, well below their 12-month high of $134.00. Insiders sold $23.6 million of stock over the past three months, while institutional investors own 75.92% of the company.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) was upgraded by Rothschild & Co Redburn to a "strong-buy" rating in a research report issued to clients and investors on Tuesday, Zacks reports.

KTOS has been the subject of a number of other research reports. The Goldman Sachs Group decreased their target price on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating for the company in a research note on Tuesday, July 14th. Piper Sandler raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price target on the stock in a research report on Wednesday, August 5th. Cantor Fitzgerald cut their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating on the stock in a research note on Tuesday, August 4th. Truist Financial reduced their price objective on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Finally, Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $95.06.

Kratos Defense & Security Solutions Stock Performance

Shares of KTOS stock opened at $43.71 on Tuesday. The company's fifty day moving average price is $50.93 and its 200-day moving average price is $56.65. The stock has a market cap of $8.21 billion, a PE ratio of 257.12 and a beta of 1.11. 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 $41.74 and a 12 month high of $134.00.

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, 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 company had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. During the same period last year, the business earned $0.11 EPS. Kratos Defense & Security Solutions's quarterly revenue was up 30.5% compared to the same quarter last year. On average, equities analysts expect that Kratos Defense & Security Solutions will post 0.57 EPS for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 26,500 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $63.25, for a total value of $1,676,125.00. Following the completion of the transaction, the insider directly owned 182,084 shares of the company's stock, valued at approximately $11,516,813. The trade was a 12.70% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 7,000 shares of the company's stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $48.78, for a total transaction of $341,460.00. Following the completion of the transaction, the chief financial officer owned 273,511 shares in the company, valued at approximately $13,341,866.58. This represents a 2.50% decrease in their position. 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 three months, insiders sold 375,513 shares of company stock valued at $23,597,752. 1.50% of the stock is owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors have recently added to or reduced their stakes in KTOS. AdvisorNet Financial Inc increased its position in Kratos Defense & Security Solutions by 15.8% in the first quarter. AdvisorNet Financial Inc now owns 1,392 shares of the aerospace company's stock worth $98,000 after buying an additional 190 shares in the last quarter. Fifth Third Wealth Advisors LLC raised its stake in shares of Kratos Defense & Security Solutions by 3.5% in the first quarter. Fifth Third Wealth Advisors LLC now owns 6,035 shares of the aerospace company's stock worth $426,000 after buying an additional 205 shares during the period. Cornell Pochily Investment Advisors Inc. lifted its position in shares of Kratos Defense & Security Solutions by 2.6% during the 1st quarter. Cornell Pochily Investment Advisors Inc. now owns 9,936 shares of the aerospace company's stock valued at $701,000 after buying an additional 250 shares in the last quarter. Strategic Advocates LLC lifted its position in shares of Kratos Defense & Security Solutions by 24.0% during the 4th quarter. Strategic Advocates LLC now owns 1,370 shares of the aerospace company's stock valued at $104,000 after buying an additional 265 shares in the last quarter. Finally, Versant Capital Management Inc grew its stake in shares of Kratos Defense & Security Solutions by 61.9% during the 2nd quarter. Versant Capital Management Inc now owns 696 shares of the aerospace company's stock valued at $35,000 after acquiring an additional 266 shares during the period. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.

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