Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up on Analyst Upgrade

Key Points

• Kratos Defense & Security Solutions shares jumped after JPMorgan upgraded the stock from neutral to overweight. The firm also set an $82 price target, down from $99, and the stock opened higher before easing back intraday.
• Analyst sentiment remains broadly positive overall, with MarketBeat showing an average rating of Moderate Buy and an average target price of $98.17. Several other firms recently adjusted their targets, with some cutting estimates while others maintained bullish ratings.
• Kratos recently posted better-than-expected quarterly results, including EPS of $0.16 versus the $0.13 estimate and revenue growth of 22.6% year over year. However, the article also noted insider selling, including transactions by an executive and the CFO.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares gapped up prior to trading on Friday after JPMorgan Chase & Co. upgraded the stock from a neutral rating to an overweight rating. The stock had previously closed at $58.78, but opened at $61.49. JPMorgan Chase & Co. now has a $82.00 price target on the stock, down from their previous price target of $99.00. Kratos Defense & Security Solutions shares last traded at $59.5620, with a volume of 1,288,134 shares trading hands.

A number of other research analysts have also weighed in on KTOS. BTIG Research reduced their price objective 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. Citizens Jmp reduced 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 report on Friday, May 8th. BNP Paribas Exane lifted their target price on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Clear Str raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Piper Sandler reduced their target price on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating for the company in a report on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $98.17.

Insiders Place Their Bets

In other news, insider Jonah Adelman sold 31,348 shares of the firm's stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total value of $1,788,716.88. Following the transaction, the insider directly owned 8,000 shares in the company, valued at $456,480. This trade represents a 79.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction on Monday, June 1st. The stock was sold at an average price of $63.74, for a total value of $318,700.00. Following the completion of the transaction, the chief financial officer owned 290,161 shares in the company, valued at approximately $18,494,862.14. This trade represents a 1.69% 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. In the last quarter, insiders have sold 217,564 shares of company stock worth $14,576,994. 1.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently modified their holdings of KTOS. Mcguire Capital Advisors Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the 4th quarter worth $25,000. Atlantic Union Bankshares Corp boosted its stake in shares of 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 worth $29,000 after buying an additional 380 shares during the last quarter. Vision Retirement LLC boosted its stake in shares of Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after buying an additional 317 shares during the last quarter. Rakuten Securities Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth $31,000. Finally, Caitlin John LLC purchased a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter worth $32,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Stock Down 0.2%

The company has a market capitalization of $11.01 billion, a PE ratio of 344.51 and a beta of 1.04. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The company has a 50-day moving average of $62.56 and a two-hundred day moving average of $80.29.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating the consensus estimate 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 return on equity of 2.82% and a net margin of 2.08%.Kratos Defense & Security Solutions's quarterly revenue was up 22.6% compared to the same quarter last year. During the same period in the previous year, the business earned $0.12 earnings per share. Sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current fiscal year.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.