Kratos Defense & Security Solutions, Inc. $KTOS Shares Sold by Zweig DiMenna Associates LLC

Key Points

• Zweig DiMenna Associates LLC reduced its Kratos Defense & Security Solutions stake by 25.8% in the first quarter, selling 53,974 shares and leaving it with 155,026 shares valued at about $10.9 million.
• Institutional ownership remains high, with 75.92% of KTOS shares held by institutions and hedge funds. Several large investors increased positions, including Corient Private Wealth, Norges Bank, Goldman Sachs, and Clearbridge.
• Analysts are still broadly positive on the stock despite some target cuts, with a Moderate Buy consensus and average price target of $101.29. Recent results also beat expectations, as Kratos reported stronger-than-expected EPS and revenue growth in its latest quarter.

Zweig DiMenna Associates LLC cut its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 25.8% during the 1st quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund owned 155,026 shares of the aerospace company's stock after selling 53,974 shares during the quarter. Kratos Defense & Security Solutions makes up approximately 1.5% of Zweig DiMenna Associates LLC's holdings, making the stock its 23rd largest holding. Zweig DiMenna Associates LLC owned about 0.08% of Kratos Defense & Security Solutions worth $10,931,000 as of its most recent SEC filing.

Other institutional investors also recently made changes to their positions in the company. Corient Private Wealth LLC grew its position in shares of Kratos Defense & Security Solutions by 7,701.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock worth $120,966,000 after buying an additional 1,573,123 shares in the last quarter. Norges Bank acquired a new stake in Kratos Defense & Security Solutions in the fourth quarter valued at $104,807,000. Goldman Sachs Group Inc. raised its holdings in Kratos Defense & Security Solutions by 66.0% in the fourth quarter. Goldman Sachs Group Inc. now owns 1,398,525 shares of the aerospace company's stock valued at $106,162,000 after acquiring an additional 556,036 shares in the last quarter. Clearbridge Investments LLC boosted its stake in Kratos Defense & Security Solutions by 48.5% during the 4th quarter. Clearbridge Investments LLC now owns 1,458,084 shares of the aerospace company's stock valued at $110,683,000 after acquiring an additional 476,049 shares during the last quarter. Finally, JPMorgan Chase & Co. boosted its stake in 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 valued at $88,170,000 after acquiring an additional 465,100 shares during the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on KTOS. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Wednesday, April 29th. BTIG Research cut 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 note on Thursday, May 7th. Canaccord Genuity Group increased their price target on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. The Goldman Sachs Group decreased their price target on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, April 21st. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Kratos Defense & Security Solutions has a consensus rating of "Moderate Buy" and a consensus target price of $101.29.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $52.85, for a total transaction of $264,250.00. Following the sale, the chief financial officer owned 285,405 shares in the company, valued at $15,083,654.25. This represents a 1.72% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,500 shares of the firm's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $57.93, for a total transaction of $86,895.00. Following the completion of the transaction, the senior vice president directly owned 64,447 shares in the company, valued at $3,733,414.71. This represents a 2.27% 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. Over the last quarter, insiders have sold 153,453 shares of company stock worth $8,867,008. 1.50% of the stock is owned by company insiders.

Kratos Defense & Security Solutions Stock Performance

Kratos Defense & Security Solutions stock opened at $50.36 on Wednesday. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. Kratos Defense & Security Solutions, Inc. has a 12 month low of $46.01 and a 12 month high of $134.00. The company has a fifty day moving average price of $54.94 and a two-hundred day moving average price of $76.39. The company has a market cap of $9.44 billion, a PE ratio of 296.24 and a beta of 1.07.

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 analysts' consensus estimates 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 for the quarter, compared to analysts' expectations of $345.00 million. During the same period in the prior year, the company earned $0.12 earnings per share. The firm's revenue was up 22.6% compared to the same quarter last year. Research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos secured approximately $400 million in new Department of Defense funding for hypersonic system and other national security programs, a meaningful boost to backlog and near-term growth expectations. Kratos Receives Approximately $400 Million in New Funding for Hypersonic System and Other Programs
• Positive Sentiment: The company announced an additional approximate $100 million sole-source prime contract for a ground-based modular space domain awareness system, expanding its role in space and advanced defense programs. Kratos Receives Approximate $100 Million Sole Source Prime Space Domain Awareness System Program Award
• Positive Sentiment: Kratos is benefiting from broader defense spending and U.S. industrial base expansion, which could create more opportunities for manufacturing and supply-chain-driven contract wins. How Is KTOS Benefiting From the US Defense Industrial Base Expansion?
• Neutral Sentiment: Market commentary also highlighted rising interest in drone and autonomous warfare stocks amid geopolitical tensions, which is adding attention to the defense sector generally. Drone Stocks Are Back In Play: Why RCAT, AVAV, KTOS, UMAC Stocks Are Climbing
• Neutral Sentiment: Analysts and media coverage have also framed KTOS as a defense name to watch as NATO and U.S. allies increase spending, but this is more of a sector tailwind than a company-specific catalyst. $50 Billion Is About to Flood Into Defense Stocks: Here’s Who Cashes In

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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