Kratos Defense & Security Solutions (NASDAQ:KTOS) Earns Buy Rating from Canaccord Genuity Group

Key Points

• Kratos Defense & Security Solutions has been given a "buy" rating by Canaccord Genuity Group, with a price target of $74.00, suggesting a potential upside of 16.55% from its previous close.
• The company recently reported earnings of $0.11 per share, exceeding estimates, with revenue of $351.50 million, a 17.1% increase year-over-year.
• Currently, Kratos Defense & Security Solutions has a consensus rating of "Moderate Buy" from analysts, with a price target averaging $57.64.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report)'s stock had its "buy" rating restated by research analysts at Canaccord Genuity Group in a research note issued on Tuesday,Benzinga reports. They presently have a $74.00 price target on the aerospace company's stock. Canaccord Genuity Group's price objective points to a potential upside of 16.55% from the company's previous close.

Several other research analysts have also commented on the company. JMP Securities set a $70.00 price objective on Kratos Defense & Security Solutions and gave the company a "market outperform" rating in a research report on Tuesday, July 22nd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, July 18th. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 22nd. Raymond James Financial restated a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, August 8th. Finally, Royal Bank Of Canada lifted their target price on Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have assigned a Hold rating to the company's stock. According to data from MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and a consensus price target of $57.64.

Kratos Defense & Security Solutions Price Performance

KTOS stock opened at $63.49 on Tuesday. The company has a market cap of $10.72 billion, a PE ratio of 637.56 and a beta of 1.05. The company has a current ratio of 4.43, a quick ratio of 3.88 and a debt-to-equity ratio of 0.12. The stock has a 50-day moving average price of $59.24 and a two-hundred day moving average price of $42.90. Kratos Defense & Security Solutions has a 12-month low of $20.83 and a 12-month high of $72.70.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings data on Thursday, August 7th. The aerospace company reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.02. The business had revenue of $351.50 million for the quarter, compared to analyst estimates of $305.67 million. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%.The company's revenue was up 17.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.14 EPS. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, research analysts predict that Kratos Defense & Security Solutions will post 0.31 EPS for the current year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction on Monday, June 30th. The stock was sold at an average price of $46.06, for a total value of $322,420.00. Following the sale, the insider directly owned 360,475 shares of the company's stock, valued at $16,603,478.50. This trade represents a 1.90% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Also, insider Thomas E. Iv Mills sold 5,758 shares of the business's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $65.54, for a total transaction of $377,379.32. Following the transaction, the insider directly owned 9,692 shares of the company's stock, valued at $635,213.68. The trade was a 37.27% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 68,177 shares of company stock worth $3,876,673. Corporate insiders own 2.37% of the company's stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently added to or reduced their stakes in the company. Thrivent Financial for Lutherans raised its position in Kratos Defense & Security Solutions by 9.0% in the second quarter. Thrivent Financial for Lutherans now owns 122,379 shares of the aerospace company's stock worth $5,685,000 after acquiring an additional 10,113 shares in the last quarter. MRP Capital Investments LLC grew its position in Kratos Defense & Security Solutions by 11.1% in the second quarter. MRP Capital Investments LLC now owns 2,500 shares of the aerospace company's stock worth $116,000 after buying an additional 250 shares during the last quarter. State of Wyoming acquired a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter valued at $132,000. Caxton Associates LLP boosted its stake in shares of Kratos Defense & Security Solutions by 30.4% during the 2nd quarter. Caxton Associates LLP now owns 16,030 shares of the aerospace company's stock worth $745,000 after acquiring an additional 3,736 shares in the last quarter. Finally, Castleark Management LLC boosted its stake in shares of Kratos Defense & Security Solutions by 34.8% during the 2nd quarter. Castleark Management LLC now owns 174,166 shares of the aerospace company's stock worth $8,090,000 after acquiring an additional 44,996 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.

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