Kratos Defense & Security Solutions (NASDAQ:KTOS) Sets New 1-Year Low - Here's What Happened

Key Points

• Kratos Defense & Security Solutions hit a new 52-week low, trading as low as $45.58 on Friday before last trading around $46.46.
• Despite the weak share price, analysts remain broadly constructive: the stock carries a Moderate Buy consensus, with an average target price of $101.29.
• The company recently beat quarterly estimates, reporting $0.16 EPS on $371 million in revenue, while insiders have also been selling shares in recent months.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price hit a new 52-week low during trading on Friday . The stock traded as low as $45.58 and last traded at $46.4640, with a volume of 397166 shares changing hands. The stock had previously closed at $46.96.

Analyst Upgrades and Downgrades

A number of research firms have weighed in on KTOS. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. BNP Paribas Exane boosted their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Citizens Jmp cut their price target 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. Truist Financial raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Friday, May 1st. Finally, Wedbush started coverage on shares of Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They set an "outperform" rating and a $85.00 price objective for the company. Three analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and an average target price of $101.29.

Kratos Defense & Security Solutions Stock Performance

The firm has a 50 day moving average of $54.50 and a 200-day moving average of $75.97. The company has a market cap of $8.76 billion, a P/E ratio of 274.48 and a beta of 1.07. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04.

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 for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The business had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same period in the previous year, the company posted $0.12 EPS. Kratos Defense & Security Solutions's revenue was up 22.6% on a year-over-year basis. As a group, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, SVP Marie Mendoza sold 1,500 shares of the company's stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $57.93, for a total value of $86,895.00. Following the completion of the sale, the senior vice president directly owned 64,447 shares of the company's stock, valued at $3,733,414.71. This represents a 2.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $52.85, for a total transaction of $264,250.00. Following the transaction, the chief financial officer owned 285,405 shares in the company, valued at approximately $15,083,654.25. The trade was a 1.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 148,036 shares of company stock valued at $8,455,857 over the last three months. 1.50% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently modified their holdings of the business. Mcguire Capital Advisors Inc. purchased a new position in Kratos Defense & Security Solutions during the fourth quarter valued at approximately $25,000. Atlantic Union Bankshares Corp lifted its holdings in Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after buying an additional 380 shares during the period. Murphy & Mullick Capital Management Corp lifted its holdings in Kratos Defense & Security Solutions by 115.4% during the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock worth $32,000 after buying an additional 225 shares during the period. Vision Retirement LLC boosted its position in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after acquiring an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in Kratos Defense & Security Solutions during the 4th quarter valued at $37,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

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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