Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 1.6% - Here's Why

Key Points

• Kratos Defense & Security Solutions saw its stock price drop 1.6% to $58.55 during trading, with a notable decline in trading volume, down 40% from the average session.
• Analysts remain optimistic, with eleven out of fourteen rating the stock as a "buy," and a consensus price target of $50.08.
• The company reported $0.12 EPS for the last quarter, exceeding estimates, with a 9.2% year-over-year revenue increase totaling $302.60 million.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price fell 1.6% during trading on Tuesday . The company traded as low as $58.59 and last traded at $58.55. 1,962,152 shares changed hands during mid-day trading, a decline of 40% from the average session volume of 3,260,586 shares. The stock had previously closed at $59.50.

Wall Street Analyst Weigh In

A number of research analysts have weighed in on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, July 18th. Truist Financial raised their price target on shares of Kratos Defense & Security Solutions from $38.00 to $52.00 and gave the company a "buy" rating in a research report on Friday, June 27th. Benchmark raised their price target on shares of Kratos Defense & Security Solutions from $48.00 to $50.00 and gave the company a "buy" rating in a research report on Tuesday, July 8th. Royal Bank Of Canada lifted their price objective on shares of Kratos Defense & Security Solutions from $38.00 to $50.00 and gave the stock an "outperform" rating in a research report on Thursday, July 3rd. Finally, The Goldman Sachs Group raised shares of Kratos Defense & Security Solutions from a "neutral" rating to a "buy" rating and set a $52.00 price objective on the stock in a research report on Monday, June 30th. One investment analyst has rated the stock with a sell rating, two have assigned a hold rating and eleven have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average price target of $50.08.

Kratos Defense & Security Solutions Price Performance

The company has a debt-to-equity ratio of 0.17, a current ratio of 2.84 and a quick ratio of 2.26. The firm has a market cap of $8.99 billion, a P/E ratio of 452.61 and a beta of 1.04. The stock's 50-day simple moving average is $46.47 and its two-hundred day simple moving average is $36.80.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings results on Wednesday, May 7th. The aerospace company reported $0.12 EPS for the quarter, beating the consensus estimate of $0.09 by $0.03. The business had revenue of $302.60 million during the quarter, compared to analyst estimates of $292.25 million. Kratos Defense & Security Solutions had a net margin of 1.68% and a return on equity of 3.85%. The company's quarterly revenue was up 9.2% on a year-over-year basis. During the same period in the prior year, the firm posted $0.11 earnings per share. Equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 15,000 shares of the stock in a transaction that occurred on Wednesday, May 21st. The shares were sold at an average price of $34.37, for a total value of $515,550.00. Following the completion of the transaction, the insider directly owned 384,492 shares of the company's stock, valued at $13,214,990.04. This trade represents a 3.75% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, CFO Deanna H. Lund sold 6,567 shares of the stock in a transaction that occurred on Monday, June 2nd. The stock was sold at an average price of $37.75, for a total transaction of $247,904.25. Following the completion of the transaction, the chief financial officer owned 318,766 shares in the company, valued at approximately $12,033,416.50. This trade represents a 2.02% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 145,572 shares of company stock worth $5,644,656 over the last ninety days. 2.37% of the stock is currently owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of KTOS. CWM LLC boosted its holdings in Kratos Defense & Security Solutions by 3.8% in the second quarter. CWM LLC now owns 4,722 shares of the aerospace company's stock valued at $219,000 after purchasing an additional 171 shares in the last quarter. Red Mountain Financial LLC lifted its stake in Kratos Defense & Security Solutions by 1.9% in the second quarter. Red Mountain Financial LLC now owns 10,500 shares of the aerospace company's stock valued at $488,000 after buying an additional 200 shares during the last quarter. ORG Partners LLC lifted its stake in Kratos Defense & Security Solutions by 12.3% in the second quarter. ORG Partners LLC now owns 2,432 shares of the aerospace company's stock valued at $105,000 after buying an additional 267 shares during the last quarter. Robertson Stephens Wealth Management LLC lifted its stake in Kratos Defense & Security Solutions by 0.7% in the second quarter. Robertson Stephens Wealth Management LLC now owns 38,965 shares of the aerospace company's stock valued at $1,810,000 after buying an additional 275 shares during the last quarter. Finally, Nisa Investment Advisors LLC lifted its stake in Kratos Defense & Security Solutions by 11.7% in the second quarter. Nisa Investment Advisors LLC now owns 2,769 shares of the aerospace company's stock valued at $129,000 after buying an additional 289 shares during the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

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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