ARS Investment Partners LLC Reduces Position in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• ARS Investment Partners cut its stake in Kratos Defense & Security Solutions by 76.8% in the fourth quarter, selling 413,365 shares and leaving it with 124,540 shares valued at about $9.45 million.
• Kratos reported better-than-expected first-quarter results, posting EPS of $0.16 versus the $0.13 estimate and revenue of $371 million, up 22.6% from a year earlier.
• Despite a recent 5% stock decline, analysts remain generally positive: the stock has a Moderate Buy consensus with an average price target of $96.28.

ARS Investment Partners LLC trimmed its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 76.8% during the fourth quarter, according to the company in its most recent Form 13F filing with the SEC. The fund owned 124,540 shares of the aerospace company's stock after selling 413,365 shares during the quarter. ARS Investment Partners LLC owned 0.07% of Kratos Defense & Security Solutions worth $9,454,000 as of its most recent filing with the SEC.

Other hedge funds and other institutional investors have also modified their holdings of the company. Caitlin John LLC purchased a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth about $32,000. Atlantic Union Bankshares Corp increased its position in shares of Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after acquiring an additional 380 shares during the last quarter. Whittier Trust Co. purchased a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth about $38,000. Accredited Wealth Management LLC increased its position in shares of Kratos Defense & Security Solutions by 193.5% during the third quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company's stock worth $37,000 after acquiring an additional 269 shares during the last quarter. Finally, CI Investments Inc. increased its position in shares of Kratos Defense & Security Solutions by 142.7% during the third quarter. CI Investments Inc. now owns 432 shares of the aerospace company's stock worth $39,000 after acquiring an additional 254 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Stock Down 5.0%

Shares of Kratos Defense & Security Solutions stock opened at $52.09 on Friday. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The firm has a market cap of $9.77 billion, a P/E ratio of 306.41 and a beta of 1.06. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $34.02 and a fifty-two week high of $134.00. The business has a 50-day moving average price of $72.39 and a 200 day moving average price of $83.05.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its 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 return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. During the same period in the previous year, the firm posted $0.12 earnings per share. Kratos Defense & Security Solutions's quarterly revenue was up 22.6% compared to the same quarter last year. On average, sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current fiscal year.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, Director Scott I. Anderson sold 15,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $89.11, for a total value of $1,336,650.00. Following the completion of the transaction, the director directly owned 51,334 shares in the company, valued at $4,574,372.74. The trade was a 22.61% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 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 completion of the transaction, the insider owned 334,648 shares of the company's stock, valued at approximately $30,978,365.36. The trade was a 2.05% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 168,027 shares of company stock valued at $13,312,040 over the last 90 days. 1.50% of the stock is owned by corporate insiders.

Analysts Set New Price Targets

Several analysts recently weighed in on the company. Truist Financial raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Jefferies Financial Group set a $80.00 price objective on Kratos Defense & Security Solutions in a report on Sunday, May 10th. Cantor Fitzgerald reissued an "overweight" rating and issued a $115.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Canaccord Genuity Group boosted their price objective on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Finally, Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions 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 issued a Hold rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $96.28.

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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