ARK Investment Management LLC Increases Stock Position in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• ARK Investment Management LLC increased its stake in Kratos Defense & Security Solutions by 22.2%, owning approximately 4.5 million shares, which represents 1.5% of its investment portfolio.
• During the second quarter, other institutional investors also adjusted their holdings, with the overall institutional ownership of Kratos Defense at 75.92%.
• Kratos reported a quarterly revenue of $351.5 million, exceeding analyst estimates, and has set future EPS guidance while maintaining a favorable market outlook.

ARK Investment Management LLC boosted its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 22.2% during the second quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 4,507,692 shares of the aerospace company's stock after acquiring an additional 818,104 shares during the period. Kratos Defense & Security Solutions accounts for 1.5% of ARK Investment Management LLC's investment portfolio, making the stock its 18th biggest position. ARK Investment Management LLC owned approximately 2.94% of Kratos Defense & Security Solutions worth $209,382,000 at the end of the most recent reporting period.

A number of other large investors have also added to or reduced their stakes in the company. CWM LLC grew its holdings in Kratos Defense & Security Solutions by 3.8% in the 2nd quarter. CWM LLC now owns 4,722 shares of the aerospace company's stock worth $219,000 after acquiring an additional 171 shares during the last quarter. Red Mountain Financial LLC grew its holdings in Kratos Defense & Security Solutions by 1.9% in the 2nd quarter. Red Mountain Financial LLC now owns 10,500 shares of the aerospace company's stock worth $488,000 after acquiring an additional 200 shares during the last quarter. ORG Partners LLC grew its holdings in Kratos Defense & Security Solutions by 12.3% in the 2nd quarter. ORG Partners LLC now owns 2,432 shares of the aerospace company's stock worth $105,000 after acquiring an additional 267 shares during the last quarter. Robertson Stephens Wealth Management LLC grew its holdings in Kratos Defense & Security Solutions by 0.7% in the 2nd quarter. Robertson Stephens Wealth Management LLC now owns 38,965 shares of the aerospace company's stock worth $1,810,000 after acquiring an additional 275 shares during the last quarter. Finally, Moran Wealth Management LLC boosted its holdings in Kratos Defense & Security Solutions by 1.8% in the second quarter. Moran Wealth Management LLC now owns 17,750 shares of the aerospace company's stock valued at $824,000 after acquiring an additional 309 shares in the last quarter. Institutional investors own 75.92% of the company's stock.

Kratos Defense & Security Solutions Stock Performance

KTOS stock opened at $90.62 on Wednesday. The firm has a market cap of $15.30 billion, a price-to-earnings ratio of 906.29 and a beta of 1.12. The firm has a 50-day simple moving average of $78.53 and a two-hundred day simple moving average of $55.04. Kratos Defense & Security Solutions, Inc. has a one year low of $22.69 and a one year high of $112.57. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.88 and a current ratio of 4.43.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The aerospace company reported $0.11 EPS for the quarter, beating the consensus estimate of $0.09 by $0.02. Kratos Defense & Security Solutions had a net margin of 1.20% and a return on equity of 3.10%. The business had revenue of $351.50 million during the quarter, compared to analyst estimates of $305.67 million. During the same period in the prior year, the firm posted $0.14 earnings per share. The company's quarterly revenue was up 17.1% on a year-over-year basis. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Analyst Ratings Changes

KTOS has been the topic of a number of recent research reports. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, July 18th. B. Riley cut shares of Kratos Defense & Security Solutions from a "buy" rating to a "neutral" rating and upped their target price for the company from $72.00 to $105.00 in a research note on Wednesday, October 8th. The Goldman Sachs Group raised shares of Kratos Defense & Security Solutions from a "neutral" rating to a "buy" rating and set a $52.00 price objective on the stock in a report on Monday, June 30th. Noble Financial reissued an "outperform" rating on shares of Kratos Defense & Security Solutions in a report on Monday, August 11th. Finally, Robert W. Baird lifted their price target on shares of Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the company an "outperform" rating in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have issued a Hold rating to the stock. According to MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and an average target price of $77.36.

Insider Activity

In related news, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction that occurred on Monday, August 25th. The shares were sold at an average price of $67.58, for a total value of $473,060.00. Following the transaction, the insider owned 346,441 shares in the company, valued at approximately $23,412,482.78. This represents a 1.98% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, VP De Burgreen Maria Cervantes sold 6,264 shares of the stock in a transaction that occurred on Monday, September 15th. The stock was sold at an average price of $69.80, for a total transaction of $437,227.20. Following the completion of the transaction, the vice president owned 53,609 shares in the company, valued at approximately $3,741,908.20. This trade represents a 10.46% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 85,716 shares of company stock valued at $6,399,245. 2.37% of the stock is owned by company insiders.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.

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