Kratos Defense & Security Solutions (NASDAQ:KTOS) Price Target Raised to $104.00

Key Points

• BTIG Research raised Kratos Defense & Security Solutions’ price target to $104 from $100 and maintained a “buy” rating, implying substantial upside from the stock’s recent price. The broader analyst consensus is also “Buy,” with an average target of $102.12.
• Kratos reported strong quarterly results, with revenue rising 30.5% year over year to $458.8 million and EPS of $0.21, exceeding analyst expectations. Growth was led by Government Solutions, while management projects approximately $1.8 billion in 2026 revenue.
• Valuation remains a key risk: the stock trades at a P/E ratio above 300 despite a net margin of about 2%. Insiders have also sold shares recently, although institutional investors own roughly 75.9% of the company.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) had its price objective upped by equities researchers at BTIG Research from $100.00 to $104.00 in a research report issued to clients and investors on Wednesday,Benzinga reports. The brokerage currently has a "buy" rating on the aerospace company's stock. BTIG Research's price target would suggest a potential upside of 100.50% from the stock's current price.

Several other analysts have also issued reports on KTOS. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. Weiss Ratings restated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, July 17th. Wedbush initiated coverage on Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They set an "outperform" rating and a $85.00 price target on the stock. BNP Paribas Exane boosted their target price on 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, Truist Financial raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Three research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $102.12.

Kratos Defense & Security Solutions Trading Up 5.4%

NASDAQ:KTOS opened at $51.87 on Wednesday. The business has a 50 day moving average price of $52.54 and a two-hundred day moving average price of $71.64. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The company has a market cap of $9.73 billion, a P/E ratio of 305.12 and a beta of 1.08. Kratos Defense & Security Solutions has a twelve month low of $43.09 and a twelve month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business had revenue of $458.80 million during the quarter, compared to analysts' expectations of $410.36 million. During the same quarter in the prior year, the company posted $0.11 earnings per share. The firm's revenue was up 30.5% on a year-over-year basis. As a group, analysts expect that Kratos Defense & Security Solutions will post 0.48 EPS for the current fiscal year.

Insider Buying and Selling

In related news, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $63.74, for a total value of $318,700.00. Following the sale, the chief financial officer directly owned 290,161 shares of the company's stock, valued at $18,494,862.14. This trade represents a 1.69% decrease in their ownership of the stock. The transaction was disclosed in a 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 Phillip D. Carrai sold 6,500 shares of the business's stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $52.13, for a total value of $338,845.00. Following the transaction, the insider directly owned 221,550 shares of the company's stock, valued at approximately $11,549,401.50. The trade was a 2.85% decrease in their position. 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 ninety days, insiders sold 139,036 shares of company stock worth $7,799,667. 1.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. Ausbil Investment Management Ltd bought a new stake in Kratos Defense & Security Solutions during the 2nd quarter worth $296,000. Hennion & Walsh Asset Management Inc. raised its position in Kratos Defense & Security Solutions by 4.0% in the second quarter. Hennion & Walsh Asset Management Inc. now owns 72,660 shares of the aerospace company's stock valued at $3,623,000 after purchasing an additional 2,808 shares during the last quarter. Polianta Ltd acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter valued at about $1,600,000. Assenagon Asset Management S.A. boosted its stake in shares of Kratos Defense & Security Solutions by 80.2% during the second quarter. Assenagon Asset Management S.A. now owns 70,254 shares of the aerospace company's stock valued at $3,503,000 after purchasing an additional 31,273 shares in the last quarter. Finally, Byrne Asset Management LLC bought a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth about $124,000. 75.92% of the stock is currently owned by institutional investors and hedge funds.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Quarterly results exceeded expectations. Kratos reported second-quarter revenue of $458.8 million, up 30.5% year over year and above the $410.4 million consensus estimate. Adjusted EPS of $0.21 also surpassed estimates of approximately $0.13-$0.14 and increased from $0.11 a year earlier. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based, led by government solutions. Kratos Government Solutions revenue rose 36.4% to $379.7 million, with 22% organic growth, while Unmanned Systems revenue increased 8.1% to $79.1 million. The results reinforce demand for the company’s hypersonic, missile-defense, drone and other national-security programs. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised expectations for continued expansion. Kratos forecasts 19%-23% organic revenue growth in 2026 and is targeting production of 3,000 Spartan engines in 2027, signaling confidence in future production demand and defense-program execution. Kratos forecasts 2026 organic revenue growth
• Positive Sentiment: Forward revenue guidance was encouraging. Full-year 2026 revenue guidance of roughly $1.8 billion exceeds the $1.7 billion analyst consensus. The midpoint of third-quarter guidance, $470 million, is modestly above expectations and implies continued year-over-year growth. Kratos Q2 2026 Earnings Call Transcript
• Neutral Sentiment: Analyst sentiment remains favorable but valuation is demanding. Cantor Fitzgerald lowered its price target to $100 from $115 while retaining an “overweight” rating. KTOS trades at a very high earnings multiple, and its approximately 2% net margin leaves limited room for execution disappointments. Cantor Fitzgerald price target update

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.

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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