Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.3% - Here's Why

Key Points

• KTOS shares fell 1.3% on Monday, trading as low as $57.37 before closing at $57.73, with volume below its recent average.
• Despite the pullback, Wall Street remains broadly bullish: analysts have a Moderate Buy consensus and an average price target of $96.28, with several firms recently reiterating or upgrading positive ratings.
• The company’s latest earnings topped expectations, reporting $0.16 EPS on $371 million in revenue, both above consensus, while revenue rose 22.6% year over year.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) dropped 1.3% during trading on Monday . The company traded as low as $57.37 and last traded at $57.73. Approximately 3,170,245 shares changed hands during trading, a decline of 28% from the average daily volume of 4,384,135 shares. The stock had previously closed at $58.52.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on KTOS. Truist Financial upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Friday, May 1st. Jefferies Financial Group set a $80.00 price target on Kratos Defense & Security Solutions in a research note on Sunday, May 10th. Cantor Fitzgerald restated an "overweight" rating and issued a $115.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Royal Bank Of Canada dropped their price objective on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th. Finally, Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have given a Hold rating to the stock. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus price target of $96.28.

Kratos Defense & Security Solutions Price Performance

The firm has a market cap of $10.83 billion, a P/E ratio of 339.59 and a beta of 1.04. The firm's fifty day simple moving average is $63.68 and its 200 day simple moving average is $80.64. 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 (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm had revenue of $371.00 million for the quarter, compared to analysts' expectations of $345.00 million. During the same period in the previous year, the firm posted $0.12 earnings per share. The business's revenue was up 22.6% compared to the same quarter last year. As a group, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current year.

Insider Activity

In related news, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction on Monday, March 16th. The shares were sold at an average price of $89.07, for a total value of $578,955.00. Following the completion of the transaction, the insider directly owned 234,292 shares of the company's stock, valued at approximately $20,868,388.44. This trade represents a 2.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director William A. Hoglund sold 30,500 shares of the company's stock in a transaction 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 sale, the director directly owned 252,500 shares in the company, valued at approximately $17,975,475. The trade was a 10.78% 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 183,564 shares of company stock worth $12,745,304. 1.50% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Alliancebernstein L.P. increased its position in Kratos Defense & Security Solutions by 1,389.0% during the third quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock valued at $247,409,000 after acquiring an additional 2,525,921 shares during the last quarter. Corient Private Wealth LLC boosted its position in shares of Kratos Defense & Security Solutions by 7,701.6% during the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock valued at $120,966,000 after buying an additional 1,573,123 shares during the period. Norges Bank bought a new position in shares of Kratos Defense & Security Solutions during the fourth quarter valued at approximately $104,807,000. Westfield Capital Management Co. LP purchased a new stake in shares of Kratos Defense & Security Solutions in the third quarter worth approximately $91,901,000. Finally, First Trust Advisors LP lifted its stake in shares of Kratos Defense & Security Solutions by 29.5% during the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock worth $280,402,000 after acquiring an additional 698,778 shares during the last quarter. 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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