UBS Group AG Lowers Stake in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• UBS trimmed its stake in Kratos by 8.7% in Q4, selling 125,454 shares and ending the quarter with 1,311,083 shares (about 0.78% of the company) valued at roughly $99.5 million.
• Company insiders have been net sellers, disposing of 173,027 shares worth about $14.0 million in the last three months (including 15,000 shares by director Scott I. Anderson), leaving insiders with roughly 1.5% ownership.
• Wall Street remains generally positive with a consensus rating of "Moderate Buy" and a target of $98.28; Kratos recently beat Q results (revenue +21.9% YoY) but trades at a rich PE (~477x) and well below its one‑year high of $134.00.

UBS Group AG reduced its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 8.7% in the 4th quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 1,311,083 shares of the aerospace company's stock after selling 125,454 shares during the quarter. UBS Group AG owned 0.78% of Kratos Defense & Security Solutions worth $99,524,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Rakuten Securities Inc. bought a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at about $31,000. Bayforest Capital Ltd bought a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at about $32,000. Caitlin John LLC bought a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at about $32,000. Accredited Wealth Management LLC raised its holdings in shares of Kratos Defense & Security Solutions by 193.5% in the third quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company's stock valued at $37,000 after acquiring an additional 269 shares in the last quarter. Finally, Whittier Trust Co. bought a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at about $38,000. 75.92% of the stock is currently owned by institutional investors.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, Director Scott I. Anderson sold 15,000 shares of the business's stock in a transaction dated Monday, March 16th. The shares were sold at an average price of $89.11, for a total value of $1,336,650.00. Following the completion of the transaction, the director directly owned 51,334 shares in the company, valued at approximately $4,574,372.74. The trade was a 22.61% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, insider Phillip D. Carrai sold 6,500 shares of the business's stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $90.91, for a total value of $590,915.00. Following the sale, the insider owned 213,325 shares in the company, valued at $19,393,375.75. The trade was a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 173,027 shares of company stock valued at $14,045,490 in the last three months. 1.50% of the stock is currently owned by insiders.

Wall Street Analysts Forecast Growth

KTOS has been the subject of several recent research reports. BTIG Research lifted their price objective on Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the company a "buy" rating in a report on Tuesday, February 24th. B. Riley Financial lifted their price objective on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a "buy" rating in a report on Friday, January 9th. Citigroup restated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Weiss Ratings restated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Finally, JonesTrading assumed coverage on Kratos Defense & Security Solutions in a report on Monday, January 5th. They issued a "buy" rating for the company. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have issued a Hold rating to the company's stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus target price of $98.28.

Kratos Defense & Security Solutions Stock Performance

Shares of Kratos Defense & Security Solutions stock opened at $62.05 on Friday. The company has a market capitalization of $11.63 billion, a PE ratio of 477.34 and a beta of 1.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06. The company has a 50-day simple moving average of $78.53 and a two-hundred day simple moving average of $85.08. Kratos Defense & Security Solutions, Inc. has a one year low of $32.85 and a one year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, topping analysts' consensus estimates of $0.14 by $0.04. The business had revenue of $345.10 million during the quarter, compared to the consensus estimate of $327.51 million. Kratos Defense & Security Solutions had a net margin of 1.63% and a return on equity of 3.34%. The firm's revenue was up 21.9% on a year-over-year basis. During the same period in the previous year, the company posted $0.13 earnings per share. Research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current fiscal 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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