MRA Advisory Group Decreases Stock Holdings in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• MRA Advisory Group cut its Kratos Defense & Security Solutions stake by 72.3% in the second quarter, selling 20,876 shares and retaining 8,012 shares valued at approximately $399,000. Institutional investors collectively own 75.92% of the company.
• Kratos reported a strong quarter, with EPS of $0.21 beating the $0.14 consensus and revenue rising 30.5% year over year to $458.8 million, above estimates of $410.36 million.
• Analyst sentiment remains favorable, with a consensus “Moderate Buy” rating and average price target of $101.29, although targets have been reduced by some firms and the stock’s high valuation and recent insider selling present risks.

MRA Advisory Group lowered its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 72.3% in the 2nd quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 8,012 shares of the aerospace company's stock after selling 20,876 shares during the quarter. MRA Advisory Group's holdings in Kratos Defense & Security Solutions were worth $399,000 as of its most recent filing with the Securities & Exchange Commission.

A number of other institutional investors and hedge funds have also made changes to their positions in the business. Royal Bank of Canada raised its position in shares of Kratos Defense & Security Solutions by 22.6% during the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock valued at $5,655,000 after buying an additional 35,098 shares in the last quarter. Amundi purchased a new position in Kratos Defense & Security Solutions in the first quarter worth about $791,000. NewEdge Advisors LLC grew its position in Kratos Defense & Security Solutions by 64.4% in the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock worth $39,000 after acquiring an additional 515 shares in the last quarter. Jones Financial Companies Lllp increased its stake in Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock worth $108,000 after acquiring an additional 2,286 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Kratos Defense & Security Solutions by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock valued at $11,686,000 after purchasing an additional 41,265 shares during the period. 75.92% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on KTOS. Royal Bank Of Canada lowered their price objective on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th. Weiss Ratings downgraded Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday. The Goldman Sachs Group decreased their price target on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. Canaccord Genuity Group raised their price target on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a "buy" rating in a research report on Wednesday. Finally, JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and dropped their price objective for the stock from $99.00 to $82.00 in a research note on Friday, June 12th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $101.29.

Kratos Defense & Security Solutions Stock Performance

Kratos Defense & Security Solutions stock opened at $60.77 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 5.08. The firm has a market capitalization of $11.41 billion, a P/E ratio of 357.47 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a 1-year low of $43.09 and a 1-year high of $134.00. The company's 50-day moving average is $52.27 and its 200 day moving average is $70.57.

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

Insider Activity

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $48.55, for a total value of $242,750.00. Following the sale, the chief financial officer owned 280,487 shares in the company, valued at $13,617,643.85. This trade represents a 1.75% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David M. Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction on Wednesday, August 5th. The stock was sold at an average price of $55.90, for a total value of $223,600.00. Following the sale, the insider owned 62,237 shares of the company's stock, valued at approximately $3,479,048.30. This trade represents a 6.04% 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 sold 144,036 shares of company stock worth $8,034,017 in the last three months. Corporate insiders own 1.50% of the company's stock.

Key Kratos Defense & Security Solutions News

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

About Kratos Defense & Security Solutions

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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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.

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