FengHe Fund Management Pte. Ltd. Invests $35.29 Million in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• FengHe Fund Management Pte. Ltd. purchased 464,900 shares of Kratos (approximately $35.29 million) in Q4, making KTOS its 21st-largest holding (~2% of the fund) and representing about 0.28% of Kratos outstanding.
• Kratos reported Q EPS of $0.18 (beating estimates by $0.04) and revenue of $345.1 million, up 21.9% year-over-year, which has spurred analyst price-target increases and a MarketBeat consensus rating of Moderate Buy (consensus target $98.28).
• The stock carries a high valuation (market cap $11.84B, P/E 485.88) with ~75.9% institutional ownership, while insiders sold roughly 167,027 shares (~$13.96M) in the last quarter.

FengHe Fund Management Pte. Ltd. bought a new position in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) in the fourth quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund bought 464,900 shares of the aerospace company's stock, valued at approximately $35,291,000. Kratos Defense & Security Solutions comprises approximately 2.0% of FengHe Fund Management Pte. Ltd.'s portfolio, making the stock its 21st biggest position. FengHe Fund Management Pte. Ltd. owned approximately 0.28% of Kratos Defense & Security Solutions at the end of the most recent reporting period.

A number of other institutional investors and hedge funds also recently made changes to their positions in the company. Rakuten Securities Inc. acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth $31,000. Bayforest Capital Ltd acquired a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth $32,000. Caitlin John LLC acquired a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth $32,000. Accredited Wealth Management LLC grew its stake 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 purchasing an additional 269 shares during the period. Finally, Whittier Trust Co. acquired a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth $38,000. Institutional investors own 75.92% of the company's stock.

Kratos Defense & Security Solutions Stock Up 3.1%

NASDAQ:KTOS opened at $63.16 on Tuesday. Kratos Defense & Security Solutions, Inc. has a 1 year low of $32.68 and a 1 year high of $134.00. The company has a current ratio of 4.06, a quick ratio of 3.46 and a debt-to-equity ratio of 0.05. The stock has a market cap of $11.84 billion, a price-to-earnings ratio of 485.88 and a beta of 1.22. The stock has a 50-day moving average price of $80.74 and a two-hundred day moving average price of $85.72.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The firm had revenue of $345.10 million during the quarter, compared to analysts' expectations of $327.51 million. During the same period in the previous year, the firm earned $0.13 earnings per share. The company's revenue was up 21.9% on a year-over-year basis. As a group, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.

Analyst Ratings Changes

A number of equities research analysts recently commented on KTOS shares. B. Riley Financial lifted their price objective on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a "buy" rating in a research note on Friday, January 9th. KeyCorp lifted their price objective on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an "overweight" rating in a research note on Wednesday, January 28th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Truist Financial set a $135.00 price objective on Kratos Defense & Security Solutions in a research note on Friday, January 9th. Finally, Cantor Fitzgerald reaffirmed an "overweight" rating and set a $115.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $98.28.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, Director William A. Hoglund sold 30,500 shares of the business's stock in a transaction dated Wednesday, April 1st. The stock was sold at an average price of $71.19, for a total value of $2,171,295.00. Following the completion of the transaction, the director directly owned 252,500 shares of the company's stock, valued at approximately $17,975,475. The trade was a 10.78% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scott I. Anderson sold 15,000 shares of the business's stock in a transaction dated Monday, March 16th. The shares were 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 of the company's stock, valued at approximately $4,574,372.74. The trade was a 22.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders sold 167,027 shares of company stock valued at $13,961,290. Insiders own 1.50% of the company's stock.

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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