Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 6.2% - Should You Sell?

Key Points

• Kratos Defense & Security Solutions shares fell 6.2% to $83.12, significantly lower from a previous close of $88.62, with trading volume increasing by 73% compared to average.
• Analysts remain optimistic, with multiple firms reaffirming ratings like "outperform" and "strong buy," alongside a price target increase from JMP Securities to $105.00.
• In the latest earnings report, Kratos posted $0.11 earnings per share, exceeding estimates and showing a 17.1% year-over-year revenue increase.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price traded down 6.2% during mid-day trading on Friday . The company traded as low as $81.71 and last traded at $83.12. 6,289,438 shares traded hands during trading, an increase of 73% from the average session volume of 3,626,013 shares. The stock had previously closed at $88.62.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on the company. Citigroup reaffirmed an "outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, October 2nd. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, August 8th. JMP Securities increased their price objective on Kratos Defense & Security Solutions from $70.00 to $105.00 and gave the stock a "market outperform" rating in a research report on Thursday, October 2nd. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, July 18th. Finally, Noble Financial reaffirmed an "outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Monday, August 11th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average price target of $77.36.

Kratos Defense & Security Solutions Stock Performance

The firm has a fifty day moving average of $77.29 and a 200-day moving average of $53.68. The stock has a market capitalization of $14.03 billion, a price-to-earnings ratio of 831.28 and a beta of 1.12. The company has a quick ratio of 3.88, a current ratio of 4.43 and a debt-to-equity ratio of 0.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released 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. The company had revenue of $351.50 million during the quarter, compared to the consensus estimate of $305.67 million. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%.Kratos Defense & Security Solutions's revenue was up 17.1% compared to the same quarter last year. During the same quarter last year, the business posted $0.14 earnings per share. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, insider Thomas E. Iv Mills sold 5,758 shares of the business's stock in a transaction dated Tuesday, September 2nd. The stock was sold at an average price of $65.54, for a total value of $377,379.32. Following the transaction, the insider owned 9,692 shares in the company, valued at approximately $635,213.68. The trade was a 37.27% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Steven S. Fendley sold 7,000 shares of the business's stock in a transaction dated Monday, August 25th. The stock was sold at an average price of $67.58, for a total value of $473,060.00. Following the completion of the transaction, the insider owned 346,441 shares in the company, valued at approximately $23,412,482.78. This trade represents a 1.98% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 78,276 shares of company stock valued at $5,678,021 in the last ninety days. Company insiders own 2.37% of the company's stock.

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently bought and sold shares of KTOS. Costello Asset Management INC acquired a new stake in Kratos Defense & Security Solutions during the first quarter valued at approximately $29,000. Smallwood Wealth Investment Management LLC acquired a new stake in Kratos Defense & Security Solutions during the first quarter valued at approximately $30,000. Aspect Partners LLC raised its stake in Kratos Defense & Security Solutions by 1,900.0% during the first quarter. Aspect Partners LLC now owns 1,000 shares of the aerospace company's stock valued at $30,000 after buying an additional 950 shares in the last quarter. Larson Financial Group LLC acquired a new stake in Kratos Defense & Security Solutions during the first quarter valued at approximately $30,000. Finally, TD Waterhouse Canada Inc. bought a new position in shares of Kratos Defense & Security Solutions during the second quarter valued at approximately $30,000. Institutional investors and hedge funds own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

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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