BTIG Research Issues Pessimistic Forecast for Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its target price decreased by research analysts at BTIG Research from $115.00 to $100.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the aerospace company's stock. BTIG Research's price objective points to a potential upside of 62.55% from the stock's previous close.

Several other brokerages also recently commented on KTOS. B. Riley Financial lifted their target price on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a "buy" rating in a research note on Friday, January 9th. Weiss Ratings reissued a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, April 21st. The Goldman Sachs Group raised their price target on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a "buy" rating in a report on Tuesday, January 20th. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Canaccord Genuity Group boosted their price target on Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a "buy" rating in a report on Tuesday, February 24th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat.com, Kratos Defense & Security Solutions has an average rating of "Moderate Buy" and a consensus price target of $96.11.

Kratos Defense & Security Solutions Price Performance

Shares of Kratos Defense & Security Solutions stock opened at $61.52 on Thursday. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06. Kratos Defense & Security Solutions has a 52-week low of $32.85 and a 52-week high of $134.00. The company has a fifty day moving average of $77.13 and a 200-day moving average of $84.59. The stock has a market capitalization of $11.53 billion, a price-to-earnings ratio of 473.27 and a beta of 1.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.13 by $0.03. The firm had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The company's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.12 earnings per share. Equities research analysts expect that Kratos Defense & Security Solutions will post 0.58 EPS for the current year.

Insider Activity

In other news, Director William A. Hoglund sold 30,500 shares of the stock in a transaction that occurred on Wednesday, April 1st. The stock was sold at an average price of $71.19, for a total value of $2,171,295.00. Following the completion of the transaction, the director owned 252,500 shares of the company's stock, valued at approximately $17,975,475. This represents a 10.78% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $92.57, for a total value of $647,990.00. Following the sale, the insider owned 334,648 shares in the company, valued at $30,978,365.36. This represents a 2.05% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 169,027 shares of company stock worth $13,522,040. Company insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in KTOS. Alliancebernstein L.P. boosted its holdings in Kratos Defense & Security Solutions by 1,389.0% in the third quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock worth $247,409,000 after acquiring an additional 2,525,921 shares in the last quarter. Corient Private Wealth LLC raised its position in shares of Kratos Defense & Security Solutions by 7,701.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock worth $120,966,000 after purchasing an additional 1,573,123 shares during the last quarter. Norges Bank bought a new position in Kratos Defense & Security Solutions in the 4th quarter worth about $104,807,000. Westfield Capital Management Co. LP bought a new position in Kratos Defense & Security Solutions in the 3rd quarter worth about $91,901,000. Finally, First Trust Advisors LP grew its position in Kratos Defense & Security Solutions by 29.5% during the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock valued at $280,402,000 after purchasing an additional 698,778 shares during the last quarter. Institutional investors 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: Q1 beats and upgraded FY26 guidance — Kratos reported Q1 EPS $0.16 vs. consensus $0.13 and revenue $371M vs. $345M consensus, and raised FY26 revenue guidance to $1.70B–$1.76B with adjusted EBITDA guidance of $170M–$176M (includes the recently closed Orbit Technologies deal). GlobeNewswire: Q1 Results & Guidance
• Positive Sentiment: Operational momentum — Unmanned Systems revenue grew ~31% organically year-over-year and Government Solutions delivered ~12% organic growth. Management cited a 1.6:1 consolidated book-to-bill, a record ~$2B backlog and a multi‑billion-dollar opportunity pipeline, supporting near‑term revenue visibility. Earnings Call Transcript
• Positive Sentiment: Analyst and institutional support — Several sell‑side firms have raised price targets and ratings recently, and multiple institutional buyers increased positions, lending credibility to the outlook. MarketBeat: Analyst & Ownership Notes
• Neutral Sentiment: Q2 revenue guide roughly in line but slightly light vs. some estimates — Kratos gave Q2 revenue guidance of $400M–$410M (midpoint ~$405M), which some reporters noted was ~2.3% below street expectations for the quarter. That tempers the beat/raise narrative a bit. Yahoo: Q1 Results & Q2 Guide
• Neutral Sentiment: Insider transaction disclosed — CFO sold 5,000 shares on a pre‑arranged Rule 10b5‑1 plan; disclosure can attract attention but was pre‑scheduled and small relative to her holdings. InsiderTrades: CFO Sale
• Negative Sentiment: Valuation and technical risk — The stock still trades at a very rich multiple and sits well below its 50‑ and 200‑day moving averages, so expectations are elevated and further upside depends on sustained execution and follow‑through. Some analysts and commentators are asking whether the recent pullback already priced in risk. Yahoo: Valuation/Pullback Discussion

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc NASDAQ: KTOS is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.

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