Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 1.4% - What's Next?

Key Points

• KTOS shares fell 1.4% on Friday, trading as low as $47.56 amid lighter volume than usual, before last changing hands near $48.19.
• Despite the dip, analysts remain broadly positive: the stock carries a Moderate Buy rating overall, with an average price target of $103.41 and several firms reiterating bullish views.
• Kratos recently reported better-than-expected Q1 results, with earnings of $0.16 per share and revenue of $371 million, while insiders have also been active sellers in recent weeks.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) fell 1.4% on Friday . The company traded as low as $47.56 and last traded at $48.19. 2,369,803 shares changed hands during mid-day trading, a decline of 48% from the average daily volume of 4,567,568 shares. The stock had previously closed at $48.85.

Analyst Upgrades and Downgrades

A number of equities research analysts have recently issued reports on the company. Jefferies Financial Group reiterated a "buy" rating and set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Wednesday. Royal Bank Of Canada cut their price objective on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research report on Thursday, May 7th. UBS Group reaffirmed a "neutral" rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Canaccord Genuity Group boosted their target price on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a research report on Thursday, May 7th. Finally, Citizens Jmp reduced their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a research report on Friday, May 8th. 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. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $103.41.

Kratos Defense & Security Solutions Trading Down 1.4%

The firm's fifty day simple moving average is $55.67 and its 200 day simple moving average is $77.08. The stock has a market capitalization of $9.04 billion, a P/E ratio of 283.47 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm's quarterly revenue was up 22.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.12 EPS. As a group, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In other news, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, June 29th. The stock was sold at an average price of $48.37, for a total value of $338,590.00. Following the transaction, the insider owned 302,126 shares in the company, valued at approximately $14,613,834.62. This trade represents a 2.26% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the business's stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $52.85, for a total value of $264,250.00. Following the transaction, the chief financial officer directly owned 285,405 shares of the company's stock, valued at $15,083,654.25. This trade represents a 1.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 157,453 shares of company stock worth $9,264,423. 1.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Royal Bank of Canada boosted its stake in shares of Kratos Defense & Security Solutions by 22.6% in the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock valued at $5,655,000 after purchasing an additional 35,098 shares in the last quarter. Amundi acquired a new position in Kratos Defense & Security Solutions during the 1st quarter worth approximately $791,000. NewEdge Advisors LLC lifted its stake in Kratos Defense & Security Solutions by 64.4% in the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock valued at $39,000 after purchasing an additional 515 shares during the last quarter. Jones Financial Companies Lllp lifted its stake in Kratos Defense & Security Solutions by 178.0% in the 1st quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock valued at $108,000 after purchasing an additional 2,286 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Kratos Defense & Security Solutions by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock valued at $11,686,000 after buying an additional 41,265 shares in the last quarter. Institutional investors and hedge funds own 75.92% of the company's stock.

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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