Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Receives Consensus Rating of "Moderate Buy" from Analysts

Key Points

• Kratos Defense & Security Solutions (NASDAQ: KTOS) has a consensus analyst rating of “Moderate Buy” from 23 firms, with an average 12-month price target of about $96.28.
• The company reported better-than-expected Q1 results, posting $0.16 EPS versus the $0.13 estimate and revenue of $371 million, up 22.6% year over year.
• Despite the upbeat earnings and analyst sentiment, the stock was trading at $56.18, and recent analyst target changes were mixed, with some firms raising targets while others lowered them.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) has received a consensus recommendation of "Moderate Buy" from the twenty-three ratings firms that are covering the firm, MarketBeat Ratings reports. Five equities research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and three have given a strong buy rating to the company. The average twelve-month price objective among analysts that have issued a report on the stock in the last year is $96.2778.

Several research analysts have recently commented on KTOS shares. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Truist Financial raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Royal Bank Of Canada lowered their target price on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. BNP Paribas Exane raised their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Finally, Citizens Jmp lowered their target price on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a report on Friday, May 8th.

Kratos Defense & Security Solutions Stock Up 2.8%

Shares of KTOS opened at $56.18 on Friday. Kratos Defense & Security Solutions has a 12 month low of $34.97 and a 12 month high of $134.00. The firm's 50 day moving average is $69.02 and its 200-day moving average is $81.82. The stock has a market capitalization of $10.53 billion, a PE ratio of 330.47 and a beta of 1.06. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate 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 for the quarter, compared to analysts' expectations of $345.00 million. During the same period last year, the firm earned $0.12 earnings per share. The business's revenue for the quarter was up 22.6% on a year-over-year basis. Equities research analysts forecast that Kratos Defense & Security Solutions will post 0.5 EPS for the current year.

Insider Activity at Kratos Defense & Security Solutions

In other news, VP De Burgreen Maria Cervantes sold 6,270 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $89.29, for a total transaction of $559,848.30. Following the transaction, the vice president directly owned 59,369 shares of the company's stock, valued at approximately $5,301,058.01. This trade represents a 9.55% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director William A. Hoglund sold 30,500 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $71.19, for a total transaction of $2,171,295.00. Following the completion of the transaction, the director directly owned 252,500 shares in the company, valued at $17,975,475. This trade represents a 10.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders sold 170,540 shares of company stock valued at $13,138,275. 1.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. bought a new position in Kratos Defense & Security Solutions in the fourth quarter valued at approximately $25,000. Atlantic Union Bankshares Corp increased its stake in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after acquiring an additional 380 shares during the last quarter. Vision Retirement LLC increased its stake in Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after acquiring an additional 317 shares during the last quarter. Rakuten Securities Inc. bought a new position in Kratos Defense & Security Solutions in the second quarter valued at approximately $31,000. Finally, Caitlin John LLC bought a new position in Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. 75.92% of the stock is owned by institutional investors.

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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