Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 2.6% on Insider Selling

Key Points

• Kratos Defense & Security Solutions (NASDAQ: KTOS) fell 2.6% after insider David M. Carter sold 4,000 shares at an average price of $50.45, a transaction disclosed under a pre-arranged Rule 10b5-1 plan.
• The stock traded below recent levels, with a session low of $46.34 and volume of 3.5 million shares, while its 50-day and 200-day moving averages stood much higher at $55.44 and $76.85, respectively.
• Despite the pullback, analysts remain generally constructive: KTOS has a Moderate Buy consensus rating and an average price target of $103.41, and the company recently beat quarterly earnings and revenue estimates with 22.6% year-over-year revenue growth.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) dropped 2.6% during mid-day trading on Monday following insider selling activity. The company traded as low as $46.34 and last traded at $46.96. 3,507,836 shares changed hands during mid-day trading, a decline of 23% from the average daily volume of 4,551,453 shares. The stock had previously closed at $48.19.

Specifically, insider David M. Carter sold 4,000 shares of the company's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $50.45, for a total value of $201,800.00. Following the sale, the insider owned 66,238 shares of the company's stock, valued at $3,341,707.10. This represents a 5.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

KTOS has been the subject of several research reports. BNP Paribas Exane lifted their price objective on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. BTIG Research dropped their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating for the company in a research report on Thursday, May 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Royal Bank Of Canada reduced their price objective on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a research report on Thursday, May 7th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Wednesday, July 8th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company's stock. According to data from MarketBeat, Kratos Defense & Security Solutions has an average rating of "Moderate Buy" and a consensus target price of $103.41.

Kratos Defense & Security Solutions Stock Down 2.6%

The firm's 50 day moving average is $55.44 and its 200-day moving average is $76.85. The firm has a market cap of $8.81 billion, a PE ratio of 276.24 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 released its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. During the same period in the previous year, the company earned $0.12 EPS. Kratos Defense & Security Solutions's revenue for the quarter was up 22.6% on a year-over-year basis. As a group, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current fiscal year.

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 KTOS. Geode Capital Management LLC lifted its position in Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company's stock worth $337,565,000 after buying an additional 148,622 shares during the period. Morgan Stanley increased its stake in shares of Kratos Defense & Security Solutions by 3.9% during the 4th quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company's stock valued at $251,345,000 after acquiring an additional 124,607 shares during the last quarter. Invesco Ltd. increased its stake in shares of Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company's stock valued at $278,331,000 after acquiring an additional 209,189 shares during the last quarter. Alliancebernstein L.P. lifted its holdings in shares of Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock worth $247,409,000 after acquiring an additional 2,525,921 shares during the period. Finally, Northern Trust Corp lifted its holdings in shares of Kratos Defense & Security Solutions by 13.6% during the 3rd quarter. Northern Trust Corp now owns 2,072,700 shares of the aerospace company's stock worth $189,383,000 after acquiring an additional 247,652 shares during the period. 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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