Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 2.8% - Here's What Happened

Key Points

• Kratos Defense & Security Solutions experienced a 2.8% decline in shares, trading as low as $60.71, with a significant drop in trading volume of 52% compared to its average.
• Analysts have mixed ratings, with price targets ranging from $44.00 to $74.00; the stock holds an average rating of "Moderate Buy" and a price target of $57.64.
• The company reported better-than-expected earnings of $0.11 per share, exceeding analyst estimates, and generating a revenue of $351.50 million for the quarter, which is a 17.1% increase year-over-year.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) was down 2.8% during trading on Wednesday . The stock traded as low as $60.71 and last traded at $62.21. Approximately 1,608,523 shares traded hands during mid-day trading, a decline of 52% from the average daily volume of 3,348,075 shares. The stock had previously closed at $64.02.

Analyst Upgrades and Downgrades

Several equities research analysts recently commented on KTOS shares. JPMorgan Chase & Co. boosted their price target on shares of Kratos Defense & Security Solutions from $44.00 to $48.00 and gave the stock a "neutral" rating in a report on Monday, June 30th. Wall Street Zen lowered shares of Kratos Defense & Security Solutions from a "hold" rating to a "sell" rating in a report on Thursday, May 22nd. Stifel Nicolaus boosted their price target on shares of Kratos Defense & Security Solutions from $54.00 to $70.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Canaccord Genuity Group set a $74.00 target price on shares of Kratos Defense & Security Solutions and gave the stock a "buy" rating in a report on Monday, August 11th. Finally, Benchmark upped their target price on shares of Kratos Defense & Security Solutions from $48.00 to $50.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. One research analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average price target of $57.64.

Kratos Defense & Security Solutions Trading Down 0.9%

The company has a debt-to-equity ratio of 0.12, a current ratio of 4.43 and a quick ratio of 3.88. The business's 50-day moving average price is $52.71 and its 200-day moving average price is $39.34. The firm has a market capitalization of $10.71 billion, a PE ratio of 632.26 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%.The firm had revenue of $351.50 million during the quarter, compared to the consensus estimate of $305.67 million. During the same period last year, the company earned $0.14 earnings per share. The company's revenue for the quarter was up 17.1% on a year-over-year basis. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, SVP Marie Mendoza sold 2,000 shares of the firm's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $68.35, for a total value of $136,700.00. Following the completion of the sale, the senior vice president owned 63,357 shares of the company's stock, valued at approximately $4,330,450.95. This trade represents a 3.06% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Phillip D. Carrai sold 6,000 shares of the firm's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $67.78, for a total value of $406,680.00. Following the completion of the sale, the insider directly owned 264,074 shares of the company's stock, valued at approximately $17,898,935.72. This trade represents a 2.22% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 86,786 shares of company stock worth $3,928,132 in the last ninety days. 2.37% of the stock is owned by insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently made changes to their positions in KTOS. CWM LLC lifted its stake in Kratos Defense & Security Solutions by 3.8% during the second quarter. CWM LLC now owns 4,722 shares of the aerospace company's stock worth $219,000 after purchasing an additional 171 shares during the last quarter. Red Mountain Financial LLC increased its position in Kratos Defense & Security Solutions by 1.9% in the second quarter. Red Mountain Financial LLC now owns 10,500 shares of the aerospace company's stock worth $488,000 after buying an additional 200 shares during the period. NewEdge Advisors LLC increased its holdings in shares of Kratos Defense & Security Solutions by 15.2% during the second quarter. NewEdge Advisors LLC now owns 1,515 shares of the aerospace company's stock valued at $70,000 after purchasing an additional 200 shares during the period. MRP Capital Investments LLC increased its holdings in shares of Kratos Defense & Security Solutions by 11.1% during the second quarter. MRP Capital Investments LLC now owns 2,500 shares of the aerospace company's stock valued at $116,000 after purchasing an additional 250 shares during the period. Finally, ORG Partners LLC increased its holdings in shares of Kratos Defense & Security Solutions by 12.3% during the second quarter. ORG Partners LLC now owns 2,432 shares of the aerospace company's stock valued at $105,000 after purchasing an additional 267 shares during the period. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.

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