Kratos Defense & Security Solutions, Inc. $KTOS Stock: Assenagon Asset Management S.A. Grows Stake

Key Points

• Assenagon Asset Management increased its KTOS stake by 163.8% in the third quarter to 185,316 shares valued at approximately $7.9 million. Institutional investors collectively own 75.92% of the company.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $92.32, although Jefferies recently downgraded the stock and two analysts maintain sell ratings.
• Kratos recently exceeded quarterly expectations, reporting $0.21 in adjusted EPS and $458.8 million in revenue, up 30.5% year over year. The stock opened at $39.17, near its one-year low of $37.84, while insiders sold shares under pre-arranged trading plans.

Assenagon Asset Management S.A. boosted its holdings in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 163.8% in the third quarter, according to the company in its most recent 13F filing with the SEC. The fund owned 185,316 shares of the aerospace company's stock after buying an additional 115,062 shares during the quarter. Assenagon Asset Management S.A. owned 0.10% of Kratos Defense & Security Solutions worth $7,911,000 at the end of the most recent quarter.

A number of other hedge funds have also bought and sold shares of the business. Bank of New York Mellon Corp grew its position in Kratos Defense & Security Solutions by 12.2% in the 1st quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company's stock worth $106,893,000 after purchasing an additional 164,607 shares during the period. Principal Financial Group Inc. lifted its stake in shares of Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock worth $74,520,000 after purchasing an additional 342,789 shares during the period. Bamco Inc. NY bought a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth approximately $53,746,000. American Capital Management Inc. bought a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth approximately $51,338,000. Finally, Sei Investments Co. boosted its holdings in shares of Kratos Defense & Security Solutions by 33.1% in the first quarter. Sei Investments Co. now owns 570,631 shares of the aerospace company's stock worth $40,234,000 after buying an additional 142,000 shares during the last quarter. Hedge funds and other institutional investors own 75.92% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on the stock. Jefferies Financial Group lowered shares of Kratos Defense & Security Solutions from a "buy" rating to a "negative" rating in a research report on Monday. Guggenheim assumed coverage on shares of Kratos Defense & Security Solutions in a research report on Monday, September 14th. They issued a "buy" rating and a $74.00 price target on the stock. BNP Paribas Exane upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a research note on Thursday, October 8th. Wedbush began coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They set an "outperform" rating and a $85.00 price target on the stock. Finally, Canaccord Genuity Group boosted their price objective on shares of Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus target price of $92.32.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $39.86, for a total value of $259,090.00. Following the completion of the sale, the insider owned 169,196 shares in the company, valued at approximately $6,744,152.56. This represents a 3.70% decrease in their position. The sale 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 7,000 shares of the firm's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the sale, the insider directly owned 288,111 shares in the company, valued at approximately $16,180,313.76. This represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 382,013 shares of company stock worth $23,856,842 in the last three months. 1.50% of the stock is owned by company insiders.

Kratos Defense & Security Solutions Stock Performance

Shares of NASDAQ KTOS opened at $39.17 on Tuesday. The firm has a fifty day moving average price of $48.81 and a 200-day moving average price of $54.30. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The stock has a market cap of $7.35 billion, a PE ratio of 84.21 and a beta of 1.11. Kratos Defense & Security Solutions, Inc. has a 1 year low of $37.84 and a 1 year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings data 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 firm had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. During the same period last year, the firm earned $0.11 EPS. The company's revenue was up 30.5% on a year-over-year basis. Equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Kratos Defense & Security Solutions Profile

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.

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