Franklin Resources Inc. Has $303.46 Million Holdings in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• Franklin Resources trimmed its stake in Kratos Defense & Security Solutions by 6.8% in the fourth quarter, though it still held 3.998 million shares valued at about $303.5 million.
• Several analysts have recently cut price targets on KTOS, but the stock still carries a consensus Moderate Buy rating with an average target price of $96.28.
• Kratos reported better-than-expected Q1 results, including EPS of $0.16 versus $0.13 expected and revenue up 22.6% year over year, even as the stock was trading well below its 52-week high.

Franklin Resources Inc. cut its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 6.8% during the fourth quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 3,997,619 shares of the aerospace company's stock after selling 289,807 shares during the period. Franklin Resources Inc. owned 2.37% of Kratos Defense & Security Solutions worth $303,459,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its position in shares of Kratos Defense & Security Solutions by 22.6% during the first quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock worth $5,655,000 after purchasing an additional 35,098 shares in the last quarter. Amundi acquired a new position in shares of Kratos Defense & Security Solutions during the first quarter worth approximately $791,000. NewEdge Advisors LLC lifted its position in shares of Kratos Defense & Security Solutions by 64.4% during the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock worth $39,000 after purchasing an additional 515 shares in the last quarter. Jones Financial Companies Lllp lifted its position in shares of Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock worth $108,000 after purchasing an additional 2,286 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its position in shares of Kratos Defense & Security Solutions by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock worth $11,686,000 after purchasing an additional 41,265 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

A number of brokerages have recently issued reports on KTOS. Citizens Jmp reduced their target price on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a research report on Friday, May 8th. Royal Bank Of Canada reduced their target price on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a research report on Thursday, May 7th. BTIG Research reduced their target price on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday, May 7th. UBS Group reiterated 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. Finally, Cantor Fitzgerald reiterated an "overweight" rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Three research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average target price of $96.28.

Insider Activity at Kratos Defense & Security Solutions

In other news, insider Stacey G. Rock sold 4,000 shares of the stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $65.47, for a total transaction of $261,880.00. Following the completion of the sale, the insider owned 13,896 shares of the company's stock, valued at $909,771.12. This represents a 22.35% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $63.74, for a total transaction of $318,700.00. Following the sale, the chief financial officer directly owned 290,161 shares of the company's stock, valued at $18,494,862.14. This represents a 1.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 187,564 shares of company stock valued at $12,981,944 over the last three months. 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 announced plans to significantly increase production capacity for its Spartan turbojet engines, which should help meet growing demand from missile and loitering munition programs and could support future revenue growth. Article: Kratos Expands Production of Spartan Engines to Support Growing Missile and Loitering Munition Demand
• Positive Sentiment: Analysts highlighted Kratos' growth engine in hypersonics and autonomous systems, noting Valkyrie drone production and improving Unmanned Systems profitability as key drivers for longer-term upside. Article: Is KTOS Building a Growth Engine in Hypersonics & Autonomous Systems?
• Neutral Sentiment: An insider, David M. Carter, sold 4,000 shares under a pre-arranged 10b5-1 plan. While the sale was disclosed properly and represented a small portion of his holdings, insider selling can still weigh on investor sentiment. Article: Insider sale filing
• Negative Sentiment: Recent commentary questioned whether KTOS has already priced in too much of its multiyear run, pointing to a sharp year-to-date decline despite strong longer-term gains. That valuation debate may be contributing to the stock's weakness. Article: Is Kratos Defense & Security Solutions (KTOS) Pricing In Too Much After Its Multiyear Run?

Kratos Defense & Security Solutions Stock Down 2.7%

Shares of KTOS stock opened at $56.19 on Wednesday. The firm has a fifty day moving average of $63.00 and a 200-day moving average of $80.45. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 12-month low of $37.90 and a 12-month high of $134.00. The company has a market capitalization of $10.54 billion, a price-to-earnings ratio of 330.53 and a beta of 1.04.

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

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.