Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Given Consensus Rating of "Buy" by Analysts

Key Points

• Analysts rate Kratos Defense & Security Solutions a consensus “Buy”: 17 analysts recommend buying, three rate it a strong buy and three recommend holding. The average 12-month price target is $102.41.
• Recent results exceeded expectations: Quarterly EPS came in at $0.21 versus the $0.14 consensus, while revenue rose 30.5% year over year to $458.8 million. Management raised its full-year 2026 revenue outlook to approximately $1.8 billion.
• Insiders have been selling while institutions remain heavily invested: Insiders sold $7.8 million of stock over the past 90 days, whereas institutional investors own 75.92% of shares. Despite strong growth and demand, the stock carries a high valuation, with a P/E ratio above 325.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) has been assigned a consensus recommendation of "Buy" from the twenty-three ratings firms that are presently covering the firm, MarketBeat reports. Three equities research analysts have rated the stock with a hold rating, seventeen have given a buy rating and three have assigned a strong buy rating to the company. The average 1-year target price among analysts that have issued ratings on the stock in the last year is $102.4118.

KTOS has been the subject of several analyst reports. BNP Paribas Exane lifted their price objective on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and decreased their target price for the stock from $99.00 to $82.00 in a research report on Friday, June 12th. Canaccord Genuity Group set a $135.00 target price on shares of Kratos Defense & Security Solutions in a report on Wednesday. The Goldman Sachs Group dropped their price target on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating for the company in a research report on Tuesday, July 14th. Finally, Citizens Jmp cut their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a research note on Friday, May 8th.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $52.13, for a total value of $338,845.00. Following the sale, the insider owned 221,550 shares of the company's stock, valued at approximately $11,549,401.50. This trade represents a 2.85% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonah Adelman sold 31,348 shares of the firm's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $57.06, for a total value of $1,788,716.88. Following the completion of the sale, the insider directly owned 8,000 shares in the company, valued at $456,480. This trade represents a 79.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 140,036 shares of company stock valued at $7,810,417 over the last 90 days. 1.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in KTOS. Geode Capital Management LLC increased its holdings in shares of Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company's stock worth $337,565,000 after buying an additional 148,622 shares in the last quarter. Morgan Stanley raised its position in shares of Kratos Defense & Security Solutions by 3.9% during the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company's stock worth $251,345,000 after acquiring an additional 124,607 shares during the last quarter. Invesco Ltd. raised its holdings in Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company's stock worth $278,331,000 after purchasing an additional 209,189 shares during the last quarter. Northern Trust Corp lifted its position in shares of Kratos Defense & Security Solutions by 13.6% in the 3rd quarter. Northern Trust Corp now owns 2,072,700 shares of the aerospace company's stock worth $189,383,000 after purchasing an additional 247,652 shares during the period. Finally, Corient Private Wealth LLC lifted its position in shares of Kratos Defense & Security Solutions by 7,701.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock worth $120,966,000 after purchasing an additional 1,573,123 shares during the period. 75.92% of the stock is owned by institutional investors.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Second-quarter results beat expectations. Kratos reported adjusted earnings of $0.21 per share, up from $0.11 a year earlier and above the roughly $0.13-$0.14 consensus. Revenue rose 30.5% year over year to $458.8 million, exceeding estimates near $410 million. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Kratos Government Solutions revenue increased 36.4% to $379.7 million, while Unmanned Systems revenue rose 8.1% to $79.1 million. Management cited demand across hypersonics, space, jet engines, counter-drone systems and unmanned aircraft, along with strong bookings. Kratos Defense Q2 Earnings and Revenues Outpace Estimates
• Positive Sentiment: Management raised its outlook. Full-year 2026 revenue guidance was lifted to approximately $1.8 billion, above the roughly $1.7 billion analyst consensus, with projected organic revenue growth of 19%-23%. Kratos also outlined plans to produce 3,000 Spartan engines in 2027. Kratos 2026 Organic Growth Forecast
• Positive Sentiment: Analyst sentiment improved. Piper Sandler upgraded KTOS, citing a buying opportunity, while BTIG raised its price target to $104 and maintained a Buy rating. The upgrades reinforce the view that the earnings beat and raised outlook may have been overly discounted by the market. Kratos Defense Upgraded at Piper Sandler
• Neutral Sentiment: Near-term guidance was roughly in line. Third-quarter revenue guidance of $460 million-$480 million brackets the $462.8 million consensus estimate, suggesting continued growth but limited immediate upside from the next-quarter forecast. Kratos Defense Rallies on Results and Upgrade
• Neutral Sentiment: Call-option activity was elevated, with 13,877 contracts purchased versus average daily volume of 10,153, indicating increased bullish speculation but not a fundamental change in the business.
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $115 to $100, although it retained an Overweight rating. Kratos also continues to trade at a demanding valuation, making the stock sensitive to any slowdown in growth or execution.

Kratos Defense & Security Solutions Stock Up 6.7%

Shares of KTOS opened at $55.34 on Thursday. The firm has a market cap of $10.38 billion, a P/E ratio of 325.53 and a beta of 1.08. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. Kratos Defense & Security Solutions has a 52 week low of $43.09 and a 52 week high of $134.00. The firm's 50-day simple moving average is $52.50 and its 200 day simple moving average is $71.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. The business had revenue of $458.80 million during the quarter, compared to analysts' expectations of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.37% and a net margin of 2.03%.The firm's revenue for the quarter was up 30.5% compared to the same quarter last year. During the same period last year, the firm posted $0.11 EPS. On average, analysts forecast that Kratos Defense & Security Solutions will post 0.48 earnings per share for the current 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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