Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 1% - What's Next?

Key Points

• Kratos Defense & Security Solutions (NASDAQ:KTOS) experienced a 1% decline in stock price, trading between $90.79 and $95.30, with a volume increase of 8% from the average daily volume.
• Several analysts have updated their ratings and price targets for KTOS, with Royal Bank of Canada raising its target price to $65 while B. Riley increased theirs to $105.
• The company reported a 17.1% year-over-year revenue increase to $351.5 million and an earnings per share (EPS) of $0.11, exceeding estimates of $0.09.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price was down 1% on Tuesday . The stock traded as low as $90.79 and last traded at $95.30. Approximately 3,893,718 shares changed hands during trading, an increase of 8% from the average daily volume of 3,597,952 shares. The stock had previously closed at $96.28.

Analyst Ratings Changes

KTOS has been the topic of a number of research reports. Royal Bank Of Canada boosted their target price on shares of Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the stock an "outperform" rating in a report on Friday, August 8th. Raymond James Financial reissued a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, August 8th. B. Riley cut shares of Kratos Defense & Security Solutions from a "buy" rating to a "neutral" rating and boosted their price objective for the stock from $72.00 to $105.00 in a research note on Wednesday, October 8th. Canaccord Genuity Group boosted their price objective on shares of Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the stock a "buy" rating in a research note on Thursday, October 9th. Finally, The Goldman Sachs Group upgraded Kratos Defense & Security Solutions from a "neutral" rating to a "buy" rating and set a $52.00 price target on the stock in a research report on Monday, June 30th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and four have issued a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $69.14.

Kratos Defense & Security Solutions Stock Down 1.0%

The stock's 50-day moving average price is $75.34 and its 200-day moving average price is $52.72. The company has a market cap of $16.09 billion, a P/E ratio of 953.10 and a beta of 1.12. The company has a current ratio of 4.43, a quick ratio of 3.88 and a debt-to-equity ratio of 0.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share (EPS) 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 business had revenue of $351.50 million for the quarter, compared to analyst estimates of $305.67 million. During the same quarter in the prior year, the company earned $0.14 earnings per share. The company's quarterly revenue 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, research analysts forecast 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 Steven S. Fendley sold 7,000 shares of the firm's stock in a transaction dated Monday, August 25th. The shares were sold at an average price of $67.58, for a total value of $473,060.00. Following the transaction, the insider owned 346,441 shares of the company's stock, valued at approximately $23,412,482.78. This trade represents a 1.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction dated Tuesday, August 19th. The shares were sold at an average price of $65.10, for a total transaction of $325,500.00. Following the completion of the transaction, the chief financial officer directly owned 313,327 shares in the company, valued at approximately $20,397,587.70. The trade was a 1.57% decrease in their position. The disclosure for this sale can be found here. In the last three months, insiders sold 78,276 shares of company stock valued at $5,678,021. Corporate insiders own 2.37% of the company's stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several large investors have recently bought and sold shares of the stock. CWM LLC lifted its stake in Kratos Defense & Security Solutions by 3.8% during the 2nd quarter. CWM LLC now owns 4,722 shares of the aerospace company's stock valued at $219,000 after acquiring an additional 171 shares in the last quarter. Red Mountain Financial LLC boosted its holdings in Kratos Defense & Security Solutions by 1.9% during the second quarter. Red Mountain Financial LLC now owns 10,500 shares of the aerospace company's stock worth $488,000 after purchasing an additional 200 shares during the last quarter. NewEdge Advisors LLC boosted its holdings in 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 worth $70,000 after purchasing an additional 200 shares during the last quarter. USA Financial Formulas boosted its holdings in Kratos Defense & Security Solutions by 15.7% during the third quarter. USA Financial Formulas now owns 1,660 shares of the aerospace company's stock worth $152,000 after purchasing an additional 225 shares during the last quarter. Finally, MRP Capital Investments LLC boosted its holdings in 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 worth $116,000 after purchasing an additional 250 shares during the last quarter. 75.92% of the stock is currently owned by 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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