ARS Investment Partners LLC Sells 34,567 Shares of Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• ARS Investment Partners cut its stake in Kratos Defense & Security Solutions by 27.8% in the first quarter, selling 34,567 shares and leaving it with 89,973 shares worth about $6.34 million.
• Kratos reported better-than-expected first-quarter results, with EPS of $0.16 versus $0.13 expected and revenue of $371 million, up 22.6% year over year.
• Analyst sentiment remains broadly positive, with a Moderate Buy consensus and an average price target of $101.35, though some firms recently lowered targets; the stock last traded at $54.21.

ARS Investment Partners LLC decreased its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 27.8% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 89,973 shares of the aerospace company's stock after selling 34,567 shares during the quarter. ARS Investment Partners LLC's holdings in Kratos Defense & Security Solutions were worth $6,344,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors have also recently modified their holdings of the company. Diversified Trust Co bought a new stake in shares of Kratos Defense & Security Solutions in the first quarter worth about $406,000. Purpose Unlimited Inc. bought a new position in Kratos Defense & Security Solutions during the 4th quarter valued at approximately $122,000. Rockefeller Capital Management L.P. raised its position in Kratos Defense & Security Solutions by 34.8% during the 4th quarter. Rockefeller Capital Management L.P. now owns 23,771 shares of the aerospace company's stock valued at $1,804,000 after purchasing an additional 6,141 shares during the last quarter. World Investment Advisors lifted its holdings in Kratos Defense & Security Solutions by 13.0% in the 4th quarter. World Investment Advisors now owns 6,015 shares of the aerospace company's stock worth $457,000 after buying an additional 694 shares during the period. Finally, Eos Management L.P. lifted its holdings in Kratos Defense & Security Solutions by 83.1% in the 4th quarter. Eos Management L.P. now owns 15,021 shares of the aerospace company's stock worth $1,140,000 after buying an additional 6,819 shares during the period. 75.92% of the stock is owned by institutional investors.

Analysts Set New Price Targets

Several research firms have recently issued reports on KTOS. Cantor Fitzgerald reissued an "overweight" rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Canaccord Genuity Group raised their price target on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Jefferies Financial Group set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Sunday, May 10th. Finally, Piper Sandler decreased their price objective on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $101.35.

Kratos Defense & Security Solutions Price Performance

KTOS stock opened at $54.21 on Friday. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $39.00 and a fifty-two week high of $134.00. The business's 50 day moving average price is $60.82 and its two-hundred day moving average price is $79.44. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The company has a market capitalization of $10.17 billion, a price-to-earnings ratio of 318.88 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same quarter in the prior year, the company earned $0.12 EPS. The business's revenue was up 22.6% compared to the same quarter last year. As a group, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Phillip D. Carrai sold 6,500 shares of the company's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $74.72, for a total value of $485,680.00. Following the sale, the insider directly owned 227,898 shares of the company's stock, valued at $17,028,538.56. This represents a 2.77% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 5,417 shares of the stock in a transaction dated Thursday, April 16th. The stock was sold at an average price of $75.90, for a total transaction of $411,150.30. Following the completion of the transaction, the director owned 75,123 shares of the company's stock, valued at approximately $5,701,835.70. The trade was a 6.73% 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. Insiders have sold 196,278 shares of company stock valued at $12,428,868 in the last 90 days. Corporate insiders own 1.50% of the company's stock.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos is being viewed as a possible winner from higher defense spending and urgent U.S. military demand for more munitions, missiles, and propulsion systems. Can Kratos Defense Become a Major Beneficiary of Rising Missile Demand?
• Positive Sentiment: The company’s autonomous trucking milestone added to investor interest by showcasing execution on advanced unmanned and logistics technology. Kratos (KTOS) Stock Trades Up, Here Is Why
• Neutral Sentiment: Analyst sentiment remains mixed-to-positive overall, with several firms maintaining buy-like views, though some recently lowered price targets.
• Negative Sentiment: Recent insider sales by senior executives, including Marie Mendoza and Phillip Carrai, may be creating some caution among investors even though the trades were pre-planned under 10b5-1 programs.
• Negative Sentiment: A separate article flagged KTOS as a “cash-burning” stock to watch, reinforcing concerns about valuation and the company’s ability to justify its premium multiple if growth cools.

Kratos Defense & Security Solutions 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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