Royce & Associates LP Has $9.63 Million Holdings in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• Royce & Associates LP sharply reduced its KTOS position by 65.9% in the fourth quarter, ending with 126,900 shares valued at about $9.63 million.
• Kratos Defense & Security Solutions recently reported better-than-expected quarterly results, with EPS of $0.16 versus $0.13 expected and revenue of $371 million, up 22.6% year over year.
• Analyst sentiment remains constructive overall, with a Moderate Buy consensus and an average price target of $96.28, while recent reports and options activity suggest continued bullish interest in the stock.

Royce & Associates LP cut its holdings in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 65.9% during the 4th quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor owned 126,900 shares of the aerospace company's stock after selling 244,902 shares during the quarter. Royce & Associates LP owned approximately 0.08% of Kratos Defense & Security Solutions worth $9,633,000 at the end of the most recent reporting period.

Several other large investors have also bought and sold shares of KTOS. Alliancebernstein L.P. boosted its stake in Kratos Defense & Security Solutions by 1,389.0% in the third quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock valued at $247,409,000 after buying an additional 2,525,921 shares in the last quarter. Westfield Capital Management Co. LP acquired a new stake in Kratos Defense & Security Solutions in the third quarter valued at approximately $91,901,000. First Trust Advisors LP boosted its position in Kratos Defense & Security Solutions by 29.5% in the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock valued at $280,402,000 after buying an additional 698,778 shares in the last quarter. JPMorgan Chase & Co. boosted its position in Kratos Defense & Security Solutions by 93.0% in the third quarter. JPMorgan Chase & Co. now owns 964,973 shares of the aerospace company's stock valued at $88,170,000 after buying an additional 465,100 shares in the last quarter. Finally, FengHe Fund Management Pte. Ltd. acquired a new stake in Kratos Defense & Security Solutions in the fourth quarter valued at approximately $35,291,000. 75.92% of the stock is owned by institutional investors and hedge funds.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: KTOS was mentioned alongside other U.S. drone stocks that surged after reports of Pentagon-backed funding talks, which could signal stronger strategic and financial support for the domestic drone industry. Drone Stocks Jump As Trump Administration Pursues Funding Deals
• Positive Sentiment: Unusually heavy call option buying in Kratos suggests traders are positioning for more upside, reinforcing bullish sentiment around the stock.
• Positive Sentiment: News flow around the government potentially investing in drone manufacturers is drawing speculative interest into defense-drone names like KTOS. Trump Invested in Intel And it Soared 500%. Here's the Next Industry the Government is Buying.
• Neutral Sentiment: Multiple insiders sold shares on May 26, including director Bobbi Doorenbos, Steven S. Fendley, and Jonah Adelman. While insider selling can weigh on sentiment, one sale was made under a pre-arranged 10b5-1 plan, and the transactions may be less meaningful than the broader industry catalyst.
• Neutral Sentiment: Short interest data showed no meaningful change in the reported figure, so it does not appear to be a major driver of the stock today.

Insider Activity

In other news, Director Scott I. Anderson sold 15,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $89.11, for a total transaction of $1,336,650.00. Following the completion of the transaction, the director directly owned 51,334 shares in the company, valued at $4,574,372.74. This trade represents a 22.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction on Monday, March 30th. The stock was sold at an average price of $69.59, for a total value of $487,130.00. Following the sale, the insider owned 358,023 shares of the company's stock, valued at $24,914,820.57. This trade represents a 1.92% decrease in their position. The SEC filing for this sale provides additional information. Over the last three months, insiders sold 195,388 shares of company stock valued at $14,021,787. 1.50% of the stock is currently owned by insiders.

Wall Street Analyst Weigh In

KTOS has been the topic of a number of research analyst reports. UBS Group restated a "neutral" rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Cantor Fitzgerald reissued an "overweight" rating and set a $115.00 price target on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Piper Sandler cut their price target on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a research note on Thursday, May 7th. Finally, BNP Paribas Exane lifted their price target 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. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the company. According to data from MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average price target of $96.28.

Kratos Defense & Security Solutions Trading Up 13.8%

NASDAQ KTOS opened at $65.19 on Friday. The company has a market cap of $12.22 billion, a price-to-earnings ratio of 383.47 and a beta of 1.06. The business has a 50 day moving average price of $66.49 and a 200-day moving average price of $81.17. Kratos Defense & Security Solutions, Inc. has a 52 week low of $35.88 and a 52 week high of $134.00. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business's revenue was up 22.6% on a year-over-year basis. During the same period last year, the company earned $0.12 earnings per share. As a group, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current fiscal year.

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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