Kratos Defense & Security Solutions, Inc. $KTOS Shares Purchased by Principal Financial Group Inc.

Key Points

• Principal Financial Group increased its Kratos Defense & Security Solutions stake by 65.2% in the fourth quarter, ending with 714,083 shares valued at about $54.2 million.
• Kratos reported strong quarterly results, posting EPS of $0.16 and revenue of $371 million, both above estimates, while revenue rose 22.6% year over year.
• Analyst sentiment remains constructive overall, with Kratos carrying a Moderate Buy consensus and an average price target of $96.56, even as some recent targets were lowered.

Principal Financial Group Inc. raised its stake in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 65.2% during the fourth quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 714,083 shares of the aerospace company's stock after buying an additional 281,811 shares during the quarter. Principal Financial Group Inc. owned about 0.42% of Kratos Defense & Security Solutions worth $54,206,000 at the end of the most recent reporting period.

A number of other large investors have also recently bought and sold shares of KTOS. Alliancebernstein L.P. grew its holdings in Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock valued at $247,409,000 after buying an additional 2,525,921 shares during the last quarter. Westfield Capital Management Co. LP purchased a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth $91,901,000. First Trust Advisors LP lifted its stake in shares of Kratos Defense & Security Solutions by 29.5% during the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock worth $280,402,000 after purchasing an additional 698,778 shares during the period. JPMorgan Chase & Co. lifted its stake in shares of Kratos Defense & Security Solutions by 93.0% during the 3rd quarter. JPMorgan Chase & Co. now owns 964,973 shares of the aerospace company's stock worth $88,170,000 after purchasing an additional 465,100 shares during the period. Finally, FengHe Fund Management Pte. Ltd. purchased a new position in shares of Kratos Defense & Security Solutions during the 4th quarter worth $35,291,000. Institutional investors and hedge funds own 75.92% of the company's stock.

Kratos Defense & Security Solutions Trading Up 1.6%

Shares of KTOS opened at $57.89 on Friday. The company has a current ratio of 5.63, a quick ratio of 3.46 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $10.86 billion, a P/E ratio of 340.53 and a beta of 1.06. The stock's fifty day simple moving average is $76.46 and its 200 day simple moving average is $84.41. Kratos Defense & Security Solutions, Inc. has a twelve month low of $32.85 and a twelve month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.03. The business had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The business's quarterly revenue was up 22.6% on a year-over-year basis. During the same period last year, the company posted $0.12 EPS. On average, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current year.

Analyst Upgrades and Downgrades

KTOS has been the topic of a number of recent analyst reports. Cantor Fitzgerald reissued an "overweight" rating and set a $115.00 price target on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Jefferies Financial Group raised Kratos Defense & Security Solutions from a "hold" rating to a "buy" rating and set a $85.00 price target on the stock in a research note on Monday, April 6th. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Weiss Ratings reissued a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, April 21st. Finally, Noble Financial reissued an "outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus price target of $96.56.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos reported Q1 revenue of $371 million and adjusted EPS of $0.16, both ahead of expectations, while also lifting full-year fiscal 2026 guidance. The company highlighted 22.6% revenue growth, a record backlog of $2 billion, and a 1.6x book-to-bill ratio, all of which support the stock. Article: Kratos Reports First Quarter 2026 Financial Results and Increases Fiscal FY26 Financial Guidance
• Positive Sentiment: The company also announced Odon, Indiana as the home of its new hypersonic test facility, a long-duration investment that could expand Kratos’ role in U.S. defense infrastructure and hypersonic materials development. Article: Kratos Names Odon, Indiana as Home of New Hypersonic Test Facility
• Positive Sentiment: Analyst commentary remains constructive despite some lower targets: Citizens JMP kept an outperform-style view and still sees substantial upside, while BTIG maintained a buy rating after reducing its target.
• Neutral Sentiment: Piper Sandler and BNP Paribas Exane both lowered price targets, but neither changed the broader investment thesis materially, suggesting valuation concerns rather than a major change in business momentum.
• Negative Sentiment: Kratos’ CFO sold about $310,500 in stock, which may add some caution for investors watching insider activity. Article: Insider Selling: Kratos Defense & Security Solutions NASDAQ: KTOS CFO Sells $310,500.00 in Stock
• Negative Sentiment: Some coverage also noted that the company continues to burn cash, which helps explain why the stock may not have reacted even more strongly to the earnings beat.

Insiders Place Their Bets

In related news, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $90.91, for a total value of $590,915.00. Following the transaction, the insider directly owned 213,325 shares of the company's stock, valued at approximately $19,393,375.75. This trade represents a 2.96% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Scott I. Anderson sold 15,000 shares of the stock in a transaction 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. This trade represents a 22.61% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 173,027 shares of company stock worth $13,754,040. Corporate insiders own 1.50% of the company's stock.

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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