Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 2% - Here's Why

Key Points

• Kratos Defense & Security Solutions shares fell 2% on Friday, trading as low as $45.58 amid heavier-than-average volume of 5.6 million shares.
• Recent analyst activity was mixed, with several firms trimming price targets while maintaining bullish ratings; the stock currently carries a Moderate Buy consensus and an average target price of $101.29.
• The company recently beat earnings expectations, reporting $0.16 EPS on $371 million in revenue, but insiders have also been selling shares, including a large sale by Jonah Adelman.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price traded down 2% during trading on Friday . The company traded as low as $45.58 and last traded at $46.03. 5,595,562 shares were traded during trading, an increase of 23% from the average session volume of 4,564,479 shares. The stock had previously closed at $46.96.

Analysts Set New Price Targets

KTOS has been the subject of a number of recent analyst reports. Canaccord Genuity Group upped their price objective on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Citizens Jmp decreased their target price on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a research report on Friday, May 8th. Clear Str raised Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. The Goldman Sachs Group lowered their price target on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating for the company in a research note on Tuesday. Finally, BTIG Research cut their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating on the stock in a research 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 company. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average target price of $101.29.

Kratos Defense & Security Solutions Price Performance

The company has a 50 day moving average of $54.50 and a 200 day moving average of $75.97. 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 firm has a market cap of $8.63 billion, a price-to-earnings ratio of 270.76 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company's revenue was up 22.6% on a year-over-year basis. During the same period in the previous year, the firm earned $0.12 earnings per share. Equities research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, insider Jonah Adelman sold 31,348 shares of the stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the completion of the sale, the insider directly owned 8,000 shares of the company's stock, valued at approximately $456,480. This represents a 79.67% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction that occurred on Friday, May 15th. The stock was sold at an average price of $52.13, for a total transaction of $338,845.00. Following the sale, the insider owned 221,550 shares in the company, valued at $11,549,401.50. This trade represents a 2.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 148,036 shares of company stock valued at $8,455,857 over the last 90 days. 1.50% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Greenleaf Trust boosted its stake in Kratos Defense & Security Solutions by 2.7% in the 4th quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock worth $291,000 after purchasing an additional 100 shares during the period. LVW Advisors LLC raised its stake in shares of Kratos Defense & Security Solutions by 3.0% in the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company's stock valued at $278,000 after purchasing an additional 107 shares during the period. CENTRAL TRUST Co raised its stake in shares of Kratos Defense & Security Solutions by 7.3% in the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company's stock valued at $129,000 after purchasing an additional 115 shares during the period. Quadrant Capital Group LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock valued at $449,000 after purchasing an additional 122 shares in the last quarter. Finally, Parkside Financial Bank & Trust boosted its position in shares of Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock worth $148,000 after buying an additional 125 shares during the period. 75.92% of the stock is currently owned by institutional investors and hedge funds.

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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