Goldman Sachs Group Inc. Buys 556,036 Shares of Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• Goldman Sachs increased its stake in Kratos Defense & Security Solutions by 66% in the fourth quarter, buying an additional 556,036 shares and bringing its total holding to 1,398,525 shares worth about $106.2 million.
• Institutional interest in KTOS remains strong, with hedge funds and other investors owning 75.92% of the company’s stock. Several firms also added to their positions during the quarter.
• Wall Street remains broadly positive on Kratos, with a consensus rating of “Moderate Buy” and a target price of $96.28. The company also recently beat quarterly earnings and revenue estimates, with revenue up 22.6% year over year.

Goldman Sachs Group Inc. boosted its stake in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 66.0% during the fourth quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The firm owned 1,398,525 shares of the aerospace company's stock after purchasing an additional 556,036 shares during the period. Goldman Sachs Group Inc. owned about 0.83% of Kratos Defense & Security Solutions worth $106,162,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in the stock. Natixis Advisors LLC lifted its position in Kratos Defense & Security Solutions by 5.1% during the fourth quarter. Natixis Advisors LLC now owns 26,840 shares of the aerospace company's stock valued at $2,037,000 after purchasing an additional 1,298 shares during the period. Sage Investment Advisers LLC bought a new position in Kratos Defense & Security Solutions during the fourth quarter valued at approximately $1,064,000. Florida Financial Advisors LLC lifted its position in Kratos Defense & Security Solutions by 23.2% during the fourth quarter. Florida Financial Advisors LLC now owns 18,746 shares of the aerospace company's stock valued at $1,421,000 after purchasing an additional 3,530 shares during the period. Clear Harbor Asset Management LLC bought a new position in Kratos Defense & Security Solutions during the fourth quarter valued at approximately $218,000. Finally, Waterloo Capital L.P. raised its position in Kratos Defense & Security Solutions by 17.2% in the fourth quarter. Waterloo Capital L.P. now owns 24,526 shares of the aerospace company's stock worth $1,862,000 after acquiring an additional 3,602 shares during the period. Institutional investors own 75.92% of the company's stock.

Wall Street Analysts Forecast Growth

Several research analysts have weighed in on the stock. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. UBS Group reiterated a "neutral" rating and issued a $82.00 price target on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Citizens Jmp decreased their price target 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. BTIG Research decreased their price target 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. Finally, Truist Financial upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Friday, May 1st. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $96.28.

Kratos Defense & Security Solutions News Summary

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?

Insider Transactions 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 value of $261,880.00. Following the completion of the sale, the insider directly 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 document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonah Adelman sold 31,348 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the completion of the sale, the insider directly owned 8,000 shares of the company's stock, valued at approximately $456,480. This trade represents a 79.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 187,564 shares of company stock valued at $12,981,944. Company insiders own 1.50% of the company's stock.

Kratos Defense & Security Solutions Stock Performance

Shares of NASDAQ KTOS opened at $56.19 on Wednesday. The firm has a fifty day moving average price of $63.00 and a 200-day moving average price of $80.45. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The stock has a market cap of $10.54 billion, a PE ratio of 330.53 and a beta of 1.04. Kratos Defense & Security Solutions, Inc. has a 1 year low of $37.90 and a 1 year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The company's revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.12 earnings per share. Equities analysts anticipate 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.

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