Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.3% - What's Next?

Key Points

• Kratos Defense & Security Solutions (NASDAQ: KTOS) fell 1.3% on Monday, trading as low as $56.68 before last changing hands at $57.02, with volume running below its daily average.
• Despite the pullback, the company recently beat quarterly expectations, reporting EPS of $0.16 versus $0.13 expected and revenue of $371 million, up 22.6% year over year.
• Analyst sentiment remains constructive overall, with a consensus rating of “Moderate Buy” and an average price target of $98.17, even as several firms recently trimmed their targets.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares dropped 1.3% during mid-day trading on Monday . The company traded as low as $56.68 and last traded at $57.02. Approximately 3,817,746 shares traded hands during trading, a decline of 12% from the average daily volume of 4,355,327 shares. The stock had previously closed at $57.75.

Wall Street Analysts Forecast Growth

KTOS has been the topic of a number of analyst reports. Piper Sandler cut their price objective on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Royal Bank Of Canada cut their price objective 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. JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and cut their price objective for the stock from $99.00 to $82.00 in a report on Friday. Citizens Jmp cut their price objective 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. Finally, Canaccord Genuity Group lifted their price objective on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday, May 7th. Three analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $98.17.

Kratos Defense & Security Solutions Stock Down 1.3%

The stock's fifty day moving average is $62.36 and its two-hundred day moving average is $80.17. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The company has a market capitalization of $10.69 billion, a PE ratio of 335.41 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm's quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.12 EPS. As a group, analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current year.

Insider Buying and Selling

In related news, Director William A. Hoglund sold 30,500 shares of the business's stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $71.19, for a total value of $2,171,295.00. Following the transaction, the director directly owned 252,500 shares of the company's stock, valued at approximately $17,975,475. The trade was a 10.78% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 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 Wednesday, April 15th. The stock was sold at an average price of $74.72, for a total transaction of $485,680.00. Following the completion of the transaction, the insider directly owned 227,898 shares in the company, valued at $17,028,538.56. This trade represents a 2.77% 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. Insiders sold 188,278 shares of company stock worth $11,966,663 in the last ninety days. Corporate insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Mcguire Capital Advisors Inc. bought a new stake in Kratos Defense & Security Solutions in the 4th quarter valued at about $25,000. Atlantic Union Bankshares Corp raised its stake in Kratos Defense & Security Solutions by 7,600.0% in the 4th 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 period. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% in 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 during the period. Rakuten Securities Inc. bought a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at about $31,000. Finally, Caitlin John LLC bought a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at about $32,000. 75.92% of the stock is currently owned by institutional investors.

Kratos Defense & Security Solutions Company Profile

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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