Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Kratos Defense & Security Solutions has an average analyst rating of "Moderate Buy" from 23 analysts, with 16 buy ratings and 3 strong buy ratings. The average 1-year price target is about $103.41.
• The company beat second-quarter expectations, reporting EPS of $0.16 versus the $0.13 consensus and revenue of $371 million versus the expected $345 million. Revenue rose 22.6% year over year.
• Shares recently traded lower at $48.19, well below the stock’s 52-week high of $134.00. Insider selling was also notable, including sales by the CFO and another executive, while institutional investors continue to hold most of the shares.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) has been given an average rating of "Moderate Buy" by the twenty-three analysts that are currently covering the firm, MarketBeat.com reports. Four research analysts have rated the stock with a hold recommendation, sixteen have assigned a buy recommendation and three have issued a strong buy recommendation on the company. The average 1 year target price among analysts that have issued a report on the stock in the last year is $103.4118.

A number of equities analysts recently weighed in on the company. Citizens Jmp dropped their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a research note on Friday, May 8th. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. Canaccord Genuity Group raised their target price on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. UBS Group reissued 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. Finally, JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and cut their price target for the company from $99.00 to $82.00 in a report on Friday, June 12th.

Insider Activity

In other news, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction on Friday, May 1st. The stock was sold at an average price of $62.10, for a total value of $310,500.00. Following the completion of the sale, the chief financial officer owned 295,200 shares of the company's stock, valued at $18,331,920. This trade represents a 1.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 35,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, June 8th. The shares were sold at an average price of $58.23, for a total value of $2,038,050.00. Following the transaction, the insider owned 309,087 shares in the company, valued at $17,998,136.01. This represents a 10.17% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 161,453 shares of company stock worth $9,466,223. 1.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of large investors have recently made changes to their positions in KTOS. Harbor Investment Advisory LLC acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth approximately $25,000. Mcguire Capital Advisors Inc. acquired a new position in Kratos Defense & Security Solutions in the 4th quarter valued at approximately $25,000. Atlantic Union Bankshares Corp increased its stake in Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after buying an additional 380 shares during the period. Vision Retirement LLC lifted its position in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after buying an additional 317 shares in the last quarter. Finally, Rakuten Securities Inc. purchased a new stake in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $31,000. Institutional investors and hedge funds own 75.92% of the company's stock.

Kratos Defense & Security Solutions Price Performance

Shares of NASDAQ:KTOS traded down $0.66 on Friday, reaching $48.19. 2,372,479 shares of the company traded hands, compared to its average volume of 5,385,610. Kratos Defense & Security Solutions has a fifty-two week low of $46.01 and a fifty-two week high of $134.00. The company's 50 day moving average is $55.44 and its 200-day moving average is $76.88. The stock has a market capitalization of $9.04 billion, a PE ratio of 283.47 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The business had revenue of $371.00 million for the quarter, compared to analysts' expectations of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company's quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the previous year, the firm posted $0.12 EPS. As a group, analysts anticipate that Kratos Defense & Security Solutions will post 0.48 earnings per share for the current fiscal year.

Kratos Defense & Security Solutions Company 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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