Kratos Defense & Security Solutions, Inc. $KTOS Shares Sold by Royal Bank of Canada

Key Points

• Royal Bank of Canada cut its Kratos stake by 48.5% in the first quarter, selling 178,312 shares and retaining 189,633 shares valued at approximately $13.4 million. Institutional investors still own 75.92% of KTOS.
• Kratos reported a strong second quarter, with EPS of $0.21 versus $0.14 expected and revenue of $458.8 million, up 30.5% year over year. Management cited stronger bookings and growth opportunities across hypersonics, unmanned systems, jet engines and counter-drone technologies.
• Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and average price target of $101.29, but valuation is a key risk: KTOS trades at a price-to-earnings ratio above 350 despite a net margin of only 2.03%.

Royal Bank of Canada trimmed its position in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 48.5% in the first quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 189,633 shares of the aerospace company's stock after selling 178,312 shares during the quarter. Royal Bank of Canada owned 0.10% of Kratos Defense & Security Solutions worth $13,372,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds also recently bought and sold shares of KTOS. BNP Paribas Financial Markets boosted its position in Kratos Defense & Security Solutions by 245.2% in the 4th quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company's stock valued at $45,673,000 after buying an additional 427,396 shares during the period. New Age Alpha Advisors LLC grew its stake in shares of Kratos Defense & Security Solutions by 435.1% in the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company's stock worth $3,265,000 after acquiring an additional 34,973 shares in the last quarter. M&T Bank Corp increased its position in shares of Kratos Defense & Security Solutions by 6,900.4% during the fourth quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company's stock worth $13,423,000 after acquiring an additional 174,305 shares during the period. Principal Financial Group Inc. increased its position in shares of Kratos Defense & Security Solutions by 65.2% during the fourth quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company's stock worth $54,206,000 after acquiring an additional 281,811 shares during the period. Finally, B. Metzler seel. Sohn & Co. AG acquired a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter valued at $1,821,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Results exceeded expectations. Kratos reported second-quarter EPS of $0.21, up from $0.11 a year earlier and above the $0.14 analyst consensus. Revenue increased 30.5% year over year to $458.8 million, surpassing estimates of approximately $410 million. Kratos Earnings Beat
• Positive Sentiment: Management highlighted stronger second-half growth. The company cited increased capacity, program funding and bookings across hypersonics, jet engines, unmanned systems and counter-drone technologies. Kratos also views engines for low-cost cruise missiles as a significant future growth opportunity. KTOS Q2 Earnings Call Highlights
• Positive Sentiment: A new U.S. Army development contract adds strategic support. Kratos will develop an Enhanced Seeker for the Javelin missile system, expanding its role in precision weapons and missile technology. Kratos Receives U.S. Army Contract
• Positive Sentiment: Analyst sentiment remains supportive. Piper Sandler upgraded KTOS, and BTIG raised its price target to $104 while maintaining a Buy rating, reinforcing investor confidence following the earnings report. Kratos Upgraded at Piper Sandler
• Neutral Sentiment: Valuation remains a risk. With a high earnings multiple and relatively modest profitability, KTOS could be vulnerable if program launches, capacity expansion or defense bookings fall short of expectations.
• Negative Sentiment: Cantor Fitzgerald reduced its price target to $100 from $115, although it retained an Overweight rating. Separately, CFO Deanna Lund sold 5,000 shares under a pre-arranged Rule 10b5-1 plan; the sale was a small reduction in her holdings but may provide a minor counterpoint to the bullish news. KTOS Insider Sale

Analyst Upgrades and Downgrades

A number of research firms recently issued reports on KTOS. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a "buy" rating in a report on Wednesday. BNP Paribas Exane lifted their price objective on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, July 28th. Wedbush started coverage on shares of Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They issued an "outperform" rating and a $85.00 target price on the stock. Finally, The Goldman Sachs Group decreased their price target on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating for the company in a research note on Tuesday, July 14th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $101.29.

Kratos Defense & Security Solutions Price Performance

KTOS stock opened at $60.77 on Friday. The business has a 50 day moving average price of $52.27 and a 200 day moving average price of $70.57. The stock has a market cap of $11.41 billion, a price-to-earnings ratio of 357.47 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $43.09 and a fifty-two week high of $134.00. The company has a quick ratio of 5.08, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. During the same period in the prior year, the firm posted $0.11 earnings per share. The firm's revenue was up 30.5% on a year-over-year basis. Equities research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In related news, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction on Friday, May 15th. The shares were sold at an average price of $52.13, for a total value of $338,845.00. Following the transaction, the insider directly owned 221,550 shares of the company's stock, valued at $11,549,401.50. This trade represents a 2.85% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 35,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, June 8th. The stock was sold at an average price of $58.23, for a total transaction of $2,038,050.00. Following the sale, the insider owned 309,087 shares in the company, valued at $17,998,136.01. This represents a 10.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 144,036 shares of company stock worth $8,034,017. 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.

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.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source