TimesSquare Capital Management LLC Trims Stock Position in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• TimesSquare Capital Management cut its KTOS stake by 17.8% in the fourth quarter, selling 61,969 shares and leaving it with 286,531 shares valued at about $21.75 million.
• Kratos reported a strong latest quarter, with revenue up 22.6% year over year to $371 million and EPS of $0.16, beating analyst expectations.
• Despite the positive operating results, the stock has faced pressure from recent insider selling and a pullback in share price; analysts still rate the name a Moderate Buy on average.

TimesSquare Capital Management LLC lessened its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 17.8% in the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 286,531 shares of the aerospace company's stock after selling 61,969 shares during the period. TimesSquare Capital Management LLC owned approximately 0.17% of Kratos Defense & Security Solutions worth $21,751,000 as of its most recent filing with the Securities and Exchange Commission (SEC).

Other institutional investors have also recently made changes to their positions in the company. Caitlin John LLC purchased a new position in shares of Kratos Defense & Security Solutions during the third quarter worth $32,000. Atlantic Union Bankshares Corp raised its holdings in shares of Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares during the last quarter. Whittier Trust Co. purchased a new position in shares of Kratos Defense & Security Solutions during the third quarter worth $38,000. Accredited Wealth Management LLC raised its holdings in shares of Kratos Defense & Security Solutions by 193.5% during the third quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company's stock worth $37,000 after purchasing an additional 269 shares during the last quarter. Finally, CI Investments Inc. raised its holdings in shares of Kratos Defense & Security Solutions by 142.7% during the third quarter. CI Investments Inc. now owns 432 shares of the aerospace company's stock worth $39,000 after purchasing an additional 254 shares during the last quarter. Hedge funds and other institutional investors own 75.92% 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: Kratos continues to benefit from rising defense spending and demand for unmanned systems, with recent results showing 22.6% revenue growth and a record backlog.
• Neutral Sentiment: A market article singled out KTOS as a long-term growth name after its pullback, arguing the recent weakness may have improved the entry point versus earlier highs. 3 Undervalued Stocks to Buy Before the Market's Next Big Move
• Negative Sentiment: Director and executive insider sales, including a 3,000-share sale by Bradley L. Boyd and additional sales by Phillip D. Carrai and Marie Mendoza, may be adding pressure to the stock. SEC filing

Insiders Place Their Bets

In other news, Director Bradley L. Boyd sold 3,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Friday, May 15th. The shares were sold at an average price of $52.08, for a total value of $156,240.00. Following the sale, the director owned 16,480 shares in the company, valued at $858,278.40. This trade represents a 15.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, insider David M. Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $58.00, for a total transaction of $232,000.00. Following the completion of the sale, the insider owned 74,071 shares in the company, valued at approximately $4,296,118. This trade represents a 5.12% 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 170,540 shares of company stock valued at $13,138,275. 1.50% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several research analysts recently issued reports on KTOS shares. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Cantor Fitzgerald reaffirmed an "overweight" rating and issued a $115.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Citizens Jmp cut their price objective on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a report on Friday, May 8th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have issued a Hold rating to the company's stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $96.28.

Kratos Defense & Security Solutions Stock Down 1.4%

KTOS opened at $53.47 on Wednesday. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $34.06 and a fifty-two week high of $134.00. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The company has a fifty day moving average of $71.09 and a two-hundred day moving average of $82.48. The stock has a market capitalization of $10.03 billion, a price-to-earnings ratio of 314.53 and a beta of 1.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating 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 during the quarter, compared to analysts' expectations of $345.00 million. During the same quarter in the previous year, the company earned $0.12 earnings per share. The firm's revenue for the quarter was up 22.6% on a year-over-year basis. On average, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current year.

Kratos Defense & Security Solutions 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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