Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Stock Rated "Moderate Buy" by Sell-Side Analysts

Key Points

• Analysts maintain a “Moderate Buy” consensus: Of 26 brokerages, 22 rate KTOS a buy and two a strong buy; the average 12-month price target is $77.40. Several firms recently cut their targets.
• Kratos shares traded at $33.91, near their 12-month low of $31.57 and well below their 12-month high of $134.00.
• Quarterly results topped estimates: Kratos reported earnings of $0.24 per share versus the $0.21 consensus and revenue of $471.8 million, up 35.7% year over year.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) have received an average recommendation of "Moderate Buy" from the twenty-six brokerages that are currently covering the company, MarketBeat Ratings reports. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, twenty-two have issued a buy rating and two have given a strong buy rating to the company. The average twelve-month price target among brokers that have covered the stock in the last year is $77.40.

Several equities research analysts have commented on KTOS shares. Royal Bank Of Canada cut their price target on shares of Kratos Defense & Security Solutions from $80.00 to $55.00 and set an "outperform" rating on the stock in a research report on Wednesday, October 28th. Canaccord Genuity Group reduced their price target on Kratos Defense & Security Solutions from $135.00 to $120.00 and set a "buy" rating for the company in a research report on Monday, November 9th. Citizens Jmp decreased their price target on Kratos Defense & Security Solutions from $105.00 to $70.00 and set a "market outperform" rating for the company in a research note on Monday, October 19th. Oppenheimer initiated coverage on Kratos Defense & Security Solutions in a research report on Thursday, October 22nd. They set an "outperform" rating and a $50.00 price target on the stock. Finally, Zacks Research upgraded Kratos Defense & Security Solutions from a "hold" rating to a "strong-buy" rating in a research note on Friday, October 23rd.

Kratos Defense & Security Solutions Price Performance

Shares of Kratos Defense & Security Solutions stock traded down $0.84 during trading on Friday, hitting $33.91. 5,000,241 shares of the company's stock traded hands, compared to its average volume of 4,812,484. The company has a debt-to-equity ratio of 0.05, a current ratio of 5.42 and a quick ratio of 4.87. The firm's fifty day moving average price is $42.11 and its 200 day moving average price is $60.59. Kratos Defense & Security Solutions has a twelve month low of $31.57 and a twelve month high of $134.00. The company has a market cap of $6.38 billion, a PE ratio of 282.58 and a beta of 1.18.

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

Insider Buying and Selling at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 14,000 shares of the firm's stock in a transaction that occurred on Friday, November 13th. The shares were sold at an average price of $33.85, for a total value of $473,900.00. Following the sale, the insider owned 274,176 shares in the company, valued at $9,280,857.60. This trade represents a 4.86% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $39.86, for a total transaction of $259,090.00. Following the completion of the transaction, the insider owned 169,196 shares of the company's stock, valued at approximately $6,744,152.56. This trade represents a 3.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 87,013 shares of company stock valued at $4,515,482 over the last three months. 1.50% of the stock is owned by insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently made changes to their positions in the stock. Paradigm Capital Management Inc. NY bought a new position in shares of Kratos Defense & Security Solutions in the second quarter valued at approximately $34,842,000. Bamco Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. Ausbil Investment Management Ltd grew its stake in shares of Kratos Defense & Security Solutions by 623.2% in the 3rd quarter. Ausbil Investment Management Ltd now owns 40,339 shares of the aerospace company's stock worth $1,722,000 after buying an additional 34,761 shares during the last quarter. Pinnacle Associates Ltd. raised its holdings in Kratos Defense & Security Solutions by 37.7% in the 3rd quarter. Pinnacle Associates Ltd. now owns 447,302 shares of the aerospace company's stock worth $19,095,000 after acquiring an additional 122,532 shares during the last quarter. Finally, Sequoia Financial Advisors LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 29.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 140,856 shares of the aerospace company's stock valued at $7,023,000 after buying an additional 32,315 shares during the period. Institutional investors own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

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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