Kratos Defense & Security Solutions, Inc. $KTOS Stock Purchased by Ausbil Investment Management Ltd

Key Points

• Ausbil Investment Management increased its KTOS position by 623.2% in the third quarter, purchasing 34,761 additional shares for a total holding of 40,339 shares valued at approximately $1.72 million.
• Institutional investors own 75.92% of Kratos, while company insiders own just 1.50%; insiders sold 375,513 shares worth approximately $23.6 million over the past 90 days.
• KTOS recently traded near its 52-week low at about $41.94 despite strong quarterly results, including revenue growth of 30.5% and earnings above estimates. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $95.06, though the stock’s high valuation and execution risks remain concerns.

Ausbil Investment Management Ltd boosted its position in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 623.2% during the 3rd quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 40,339 shares of the aerospace company's stock after purchasing an additional 34,761 shares during the period. Ausbil Investment Management Ltd's holdings in Kratos Defense & Security Solutions were worth $1,722,000 as of its most recent SEC filing.

Other hedge funds and other institutional investors also recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY purchased a new stake in shares of Kratos Defense & Security Solutions in the second quarter worth approximately $34,842,000. Bamco Inc. NY bought a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. Principal Financial Group Inc. boosted its holdings in Kratos Defense & Security Solutions by 48.0% during the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock valued at $74,520,000 after acquiring an additional 342,789 shares during the period. Hsbc Holdings PLC boosted its holdings in Kratos Defense & Security Solutions by 187.7% during the 1st quarter. Hsbc Holdings PLC now owns 47,566 shares of the aerospace company's stock valued at $3,321,000 after acquiring an additional 31,031 shares during the period. Finally, Sequoia Financial Advisors LLC grew its position in Kratos Defense & Security Solutions by 29.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 140,856 shares of the aerospace company's stock valued at $7,023,000 after acquiring an additional 32,315 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $48.78, for a total value of $341,460.00. Following the transaction, the chief financial officer owned 273,511 shares in the company, valued at $13,341,866.58. The trade was a 2.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,000 shares of the business's stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $48.50, for a total transaction of $48,500.00. Following the completion of the transaction, the senior vice president owned 61,200 shares of the company's stock, valued at $2,968,200. This represents a 1.61% 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 375,513 shares of company stock valued at $23,597,752 over the last 90 days. Company insiders own 1.50% of the company's stock.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: New contract activity supports the growth outlook. Reports highlighted approximately $100 million in contracts, potentially strengthening Kratos’ revenue visibility across its defense and aerospace programs. Kratos Defense and Security Solutions stock gains on USD 100 million contracts
• Positive Sentiment: New analyst coverage is bullish. Rothschild & Co. Redburn initiated coverage with a Buy rating and a $70 price target, implying substantial upside from recent trading levels. Rothschild and Co Redburn initiates Kratos coverage
• Positive Sentiment: Options activity suggests speculative bullish interest. Investors purchased 26,657 call options, about 153% above typical daily call volume. This may indicate traders positioning for a rebound, although it does not guarantee buying in the shares.
• Neutral Sentiment: The stock has reached a technical pressure point. KTOS touched a new 52-week low near $41.72 after a sharp pullback, while its three-year gain remains substantial. The move may attract value-oriented buyers but also reflects deteriorating investor momentum. Kratos stock hits 52-week low
• Negative Sentiment: Valuation and cash-flow concerns are weighing on sentiment. Commentary questioned whether Kratos’ share price already reflects future contracts, facilities and defense-technology growth. With a very high price-to-earnings ratio, investors are demanding significant cash-flow improvement.
• Negative Sentiment: Execution risks remain. Supply-chain constraints and relatively low returns on equity could limit growth, while weakness across peer drone and defense companies has added sector-wide pressure. Kratos growth prospects and risks

Kratos Defense & Security Solutions Price Performance

Shares of KTOS opened at $41.94 on Thursday. The stock has a market capitalization of $7.87 billion, a PE ratio of 246.71 and a beta of 1.11. The company has a 50 day moving average price of $50.89 and a 200-day moving average price of $56.29. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $40.92 and a fifty-two week high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The company had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. During the same quarter in the prior year, the business earned $0.11 earnings per share. Kratos Defense & Security Solutions's revenue was up 30.5% on a year-over-year basis. Equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have recently weighed in on KTOS. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Stifel Nicolaus cut their price target on shares of Kratos Defense & Security Solutions from $134.00 to $115.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Rothschild & Co Redburn initiated coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday. They issued a "buy" rating and a $70.00 price target on the stock. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. Finally, Weiss Ratings cut shares of Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and an average price target of $95.06.

Kratos Defense & Security Solutions Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.

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