WCM Investment Management LLC Trims Holdings in Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• WCM Investment Management cut its Kratos Defense & Security Solutions stake by 22.7% in the first quarter, selling 65,313 shares and ending with 221,869 shares valued at about $14.5 million.
• Institutional activity was mixed overall: while some investors reduced positions, others like Royal Bank of Canada and UBS AM increased holdings. Institutions and hedge funds still own a large majority of the stock at 75.92%.
• Kratos posted a strong quarterly update, reporting EPS of $0.16 versus estimates of $0.13 and revenue of $371 million, up 22.6% year over year. Analysts remain broadly positive, with a consensus rating of Moderate Buy and a price target of $101.29.

WCM Investment Management LLC reduced its stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 22.7% in the 1st quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 221,869 shares of the aerospace company's stock after selling 65,313 shares during the quarter. WCM Investment Management LLC owned approximately 0.12% of Kratos Defense & Security Solutions worth $14,484,000 at the end of the most recent quarter.

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

Wall Street Analyst Weigh In

A number of research analysts recently commented on the company. Weiss Ratings reiterated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and reduced their target price for the company from $99.00 to $82.00 in a research report on Friday, June 12th. Jefferies Financial Group reaffirmed a "buy" rating and issued a $80.00 price target on shares of Kratos Defense & Security Solutions in a research note on Wednesday, July 8th. Clear Str upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Wedbush started coverage on Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They set an "outperform" rating and a $85.00 price objective for the company. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $101.29.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 5,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $52.85, for a total value of $264,250.00. Following the completion of the transaction, the chief financial officer directly owned 285,405 shares of the company's stock, valued at $15,083,654.25. The trade was a 1.72% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the business's stock in a transaction dated Monday, June 29th. The stock was sold at an average price of $48.37, for a total transaction of $338,590.00. Following the sale, the insider owned 302,126 shares in the company, valued at $14,613,834.62. This trade represents a 2.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 148,036 shares of company stock worth $8,455,857. 1.50% of the stock is owned by corporate insiders.

Kratos Defense & Security Solutions Stock Performance

NASDAQ:KTOS opened at $45.94 on Tuesday. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $45.58 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 50 day moving average price of $54.04 and a 200 day moving average price of $75.53. The stock has a market capitalization of $8.61 billion, a P/E ratio of 270.24 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results 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. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. During the same quarter in the previous year, the company earned $0.12 earnings per share. The firm's quarterly revenue was up 22.6% compared to the same quarter last year. Equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current 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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