Citizens Jmp Cuts Kratos Defense & Security Solutions (NASDAQ:KTOS) Price Target to $105.00

Key Points

• Citizens Jmp cut its price target for Kratos from $125 to $105 while keeping a market outperform rating, implying roughly an 83.6% upside from the stock's current price.
• Kratos beat Q1 estimates (revenue $371M, +22.6%; adjusted EPS $0.16 vs. $0.13), raised FY26 guidance, and cited a record backlog (~$1.635B–$2B) with an ~ $14B opportunity pipeline supporting medium‑term growth.
• Analyst sentiment is mixed but averages a Moderate Buy with a $96.56 consensus target; investors remain cautious due to a very high PE (337) and notable insider selling, despite ~76% institutional ownership.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price objective decreased by investment analysts at Citizens Jmp from $125.00 to $105.00 in a report released on Friday,Benzinga reports. The firm currently has a "market outperform" rating on the aerospace company's stock. Citizens Jmp's price objective would indicate a potential upside of 83.55% from the company's current price.

A number of other equities research analysts have also recently commented on KTOS. 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. Jefferies Financial Group raised Kratos Defense & Security Solutions from a "hold" rating to a "buy" rating and set a $85.00 target price for the company in a research report on Monday, April 6th. Noble Financial reissued an "outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Canaccord Genuity Group upped their target price on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday. Finally, BTIG Research decreased their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have issued a Hold rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $96.56.

Kratos Defense & Security Solutions Trading Up 0.4%

KTOS stock traded up $0.20 during trading on Friday, hitting $57.20. The company had a trading volume of 1,454,706 shares, compared to its average volume of 4,187,250. The stock has a market cap of $10.72 billion, a PE ratio of 337.00 and a beta of 1.06. Kratos Defense & Security Solutions has a one year low of $32.85 and a one year high of $134.00. The company has a current ratio of 4.06, a quick ratio of 3.46 and a debt-to-equity ratio of 0.05. The business has a 50-day moving average of $76.46 and a 200-day moving average of $84.41.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 3.33%. The business had revenue of $371.00 million for the quarter, compared to analysts' expectations of $345.00 million. During the same quarter in the prior year, the firm posted $0.12 earnings per share. The business's quarterly revenue was up 22.6% compared to the same quarter last year. Research analysts predict that Kratos Defense & Security Solutions will post 0.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Stacey G. Rock sold 4,000 shares of the business's stock in a transaction that occurred on Tuesday, April 28th. The stock was sold at an average price of $61.03, for a total transaction of $244,120.00. Following the completion of the transaction, the insider directly owned 17,897 shares in the company, valued at approximately $1,092,253.91. The trade was a 18.27% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction that occurred on Monday, April 27th. The stock was sold at an average price of $61.64, for a total transaction of $431,480.00. Following the completion of the transaction, the insider owned 351,039 shares of the company's stock, valued at approximately $21,638,043.96. The trade was a 1.96% 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. Over the last 90 days, insiders have sold 169,027 shares of company stock valued at $13,522,040. 1.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several large investors have recently made changes to their positions in KTOS. Alliancebernstein L.P. raised its holdings in shares of Kratos Defense & Security Solutions by 1,389.0% during the 3rd 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 lifted its stake 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 valued at $120,966,000 after purchasing an additional 1,573,123 shares during the last quarter. Norges Bank bought a new position in shares of Kratos Defense & Security Solutions during the 4th quarter valued at approximately $104,807,000. Westfield Capital Management Co. LP purchased a new stake in Kratos Defense & Security Solutions during the 3rd quarter valued at $91,901,000. Finally, First Trust Advisors LP grew its holdings in shares of Kratos Defense & Security Solutions by 29.5% in the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock worth $280,402,000 after purchasing an additional 698,778 shares during the last quarter. 75.92% of the stock is owned by institutional investors.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Q1 beat and raised FY26 guidance — Kratos reported Q1 revenue of $371.0M (up 22.6%), adjusted EPS $0.16 vs. $0.13 est., increased FY26 revenue and adjusted EBITDA guidance and a record backlog, which supports longer‑term revenue visibility. Kratos Reports First Quarter 2026 Financial Results
• Positive Sentiment: Backlog, bookings and growth drivers — Management cited a record backlog (~$1.635B to $2B across disclosures), a 1.6:1 book‑to‑bill and an opportunity pipeline (~$14B), supporting medium‑term growth expectations. Kratos Reports First Quarter 2026 Financial Results (Yahoo)
• Positive Sentiment: Hypersonic test facility award/expansion — Kratos selected Odon, Indiana for a new arc‑jet and laser hypersonic test facility, which could drive multi‑domain testing revenue and position the company on longer‑term defense spending themes. Kratos Names Odon, Indiana as Home of New Hypersonic Test Facility
• Positive Sentiment: Product & production roadmap — Kratos reaffirmed FY26 revenue of $1.7B–$1.76B and plans ~40 Valkyrie drones annually by early‑2028, highlighting scalable unmanned systems revenue. Kratos projects $1.7B-$1.76B 2026 revenue...
• Neutral Sentiment: Mixed analyst moves — BNP Paribas nudged its target up to $85 (neutral), while BTIG and Piper Sandler trimmed targets (still positive/neutral tilts). Analysts remain divided on valuation/timing. Benzinga
• Negative Sentiment: Insider selling — The CFO sold roughly $310.5K of stock, which can amplify negative sentiment even if routine. Insider Selling: Kratos CFO Sells Stock
• Negative Sentiment: Cash burn and margin worries — Commentaries highlighted ongoing cash consumption and the need to fund rapid investment, which, combined with a very high PE, keeps some investors cautious. Why Kratos Stock Just Dropped
• Negative Sentiment: Near‑term guidance nuance — Q2 revenue guidance (~$400M–$410M / some commentary cited ~$405M) was roughly flat-to‑slightly below certain expectations, which likely triggered short‑term profit‑taking despite the upgraded FY outlook. Kratos Beats Q1 Estimates (Yahoo)

About Kratos Defense & Security Solutions

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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