American Capital Management Inc. Takes Position in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• American Capital Management acquired 1.03 million Kratos shares worth approximately $51.3 million, making KTOS its 17th-largest holding and representing about 0.55% of the company.
• Kratos reported a quarterly earnings and revenue beat, with EPS of $0.21 versus $0.14 expected and revenue of $458.8 million, up 30.5% year over year.
• Analysts maintain a Moderate Buy consensus with an average price target of $99.47, although insiders sold roughly $27 million of stock during the past quarter.

American Capital Management Inc. bought a new stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) in the second quarter, according to its most recent filing with the Securities & Exchange Commission. The firm bought 1,029,653 shares of the aerospace company's stock, valued at approximately $51,338,000. Kratos Defense & Security Solutions accounts for 2.3% of American Capital Management Inc.'s investment portfolio, making the stock its 17th largest holding. American Capital Management Inc. owned about 0.55% of Kratos Defense & Security Solutions at the end of the most recent quarter.

Several other large investors also recently bought and sold shares of the stock. Harbor Investment Advisory LLC purchased a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth approximately $25,000. Mcguire Capital Advisors Inc. acquired a new stake in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $25,000. Atlantic Union Bankshares Corp lifted its position in shares of Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares during the last quarter. Vision Retirement LLC lifted its position in shares of Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after purchasing an additional 317 shares during the last quarter. Finally, Rakuten Securities Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the second quarter worth $31,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

Kratos Defense & Security Solutions Stock Performance

Shares of KTOS opened at $52.93 on Thursday. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The firm has a market cap of $9.94 billion, a PE ratio of 311.35 and a beta of 1.08. The company's 50 day simple moving average is $52.54 and its 200-day simple moving average is $65.73. Kratos Defense & Security Solutions, Inc. has a 12-month low of $43.09 and a 12-month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. The business had revenue of $458.80 million for the quarter, compared to analysts' expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company's quarterly revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the company posted $0.11 EPS. As a group, equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Analyst Ratings Changes

KTOS has been the subject of a number of recent analyst reports. JPMorgan Chase & Co. raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and decreased their price target for the stock from $99.00 to $82.00 in a report on Friday, June 12th. Jefferies Financial Group set a $105.00 price objective on Kratos Defense & Security Solutions in a report on Wednesday, August 5th. UBS Group reissued a "neutral" rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Canaccord Genuity Group upped their price target on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Finally, BTIG Research increased their price target on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $99.47.

Insider Activity

In related news, insider Phillip D. Carrai sold 26,500 shares of Kratos Defense & Security Solutions stock in a transaction on 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 transaction, the insider directly owned 182,084 shares in the company, valued at $11,516,813. This trade represents a 12.70% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,513 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $64.37, for a total transaction of $97,391.81. Following the completion of the sale, the senior vice president directly owned 61,976 shares in the company, valued at approximately $3,989,395.12. The trade was a 2.38% 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 sold 433,688 shares of company stock worth $26,990,882 over the last quarter. 1.50% of the stock is owned by insiders.

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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