Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 1.2% - What's Next?

Key Points

• KTOS shares slipped 1.2% on Tuesday, trading as low as $55.01 and last changing hands at $56.34, below the prior close of $57.02.
• Despite the pullback, analysts remain generally positive: the stock carries a Moderate Buy consensus with an average target price of $98.17, even after several firms trimmed their price targets.
• Kratos recently reported better-than-expected quarterly results, with EPS of $0.16 versus $0.13 expected and revenue of $371 million, up 22.6% year over year; however, insider selling has also been notable in recent weeks.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price dropped 1.2% during trading on Tuesday . The company traded as low as $55.01 and last traded at $56.34. Approximately 3,123,906 shares changed hands during mid-day trading, a decline of 28% from the average daily volume of 4,341,019 shares. The stock had previously closed at $57.02.

Wall Street Analyst Weigh In

Several research firms recently issued reports on KTOS. JPMorgan Chase & Co. raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and dropped their price objective for the company from $99.00 to $82.00 in a research note on Friday. Clear Str upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Piper Sandler decreased their price objective on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Citizens Jmp decreased their price objective on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a report on Friday, May 8th. Finally, BTIG Research decreased their price objective on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, May 7th. Three 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. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $98.17.

Kratos Defense & Security Solutions Stock Performance

The company has a market cap of $10.56 billion, a PE ratio of 331.41 and a beta of 1.04. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The business has a fifty day moving average of $62.16 and a 200-day moving average of $80.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. During the same quarter in the previous year, the business earned $0.12 EPS. Kratos Defense & Security Solutions's revenue was up 22.6% compared to the same quarter last year. Equities research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 35,000 shares of the business's stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $58.23, for a total transaction of $2,038,050.00. Following the transaction, the insider owned 309,087 shares in the company, valued at $17,998,136.01. The trade was a 10.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Jonah Adelman sold 31,348 shares of the business's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $57.06, for a total value of $1,788,716.88. Following the transaction, the insider owned 8,000 shares in the company, valued at approximately $456,480. This represents a 79.67% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 188,278 shares of company stock worth $11,966,663 over the last 90 days. 1.50% of the stock is owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

Large investors have recently bought and sold shares of the company. Mcguire Capital Advisors Inc. bought a new stake in Kratos Defense & Security Solutions during the 4th quarter valued at approximately $25,000. Caitlin John LLC bought a new stake in Kratos Defense & Security Solutions during the 3rd quarter valued at approximately $32,000. Atlantic Union Bankshares Corp boosted its position in Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after acquiring an additional 380 shares in the last quarter. Accredited Wealth Management LLC boosted its position in Kratos Defense & Security Solutions by 193.5% during the 3rd quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company's stock valued at $37,000 after acquiring an additional 269 shares in the last quarter. Finally, Murphy & Mullick Capital Management Corp boosted its position in Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock valued at $32,000 after acquiring an additional 225 shares in the last quarter. 75.92% of the stock is owned by institutional investors.

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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