Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 2.7% - Should You Sell?

Key Points

• Kratos Defense & Security Solutions' stock price fell 2.7% to $62.77, with a trading volume significantly below its average.
• Despite the recent decline, several analysts maintain a strong outlook with a majority rating as "buy," and a price target range that includes estimates up to $74.00.
• The company's latest earnings report showed a 17.1% revenue increase year-over-year, with earnings per share of $0.11, exceeding expectations.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price fell 2.7% on Thursday . The company traded as low as $61.75 and last traded at $62.77. 1,094,236 shares changed hands during mid-day trading, a decline of 67% from the average session volume of 3,306,258 shares. The stock had previously closed at $64.50.

Wall Street Analysts Forecast Growth

KTOS has been the subject of several analyst reports. Cantor Fitzgerald reissued an "overweight" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, July 18th. B. Riley reiterated a "buy" rating and issued a $72.00 price target (up previously from $55.00) on shares of Kratos Defense & Security Solutions in a report on Monday, August 11th. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, August 8th. Wall Street Zen cut shares of Kratos Defense & Security Solutions from a "hold" rating to a "sell" rating in a research note on Thursday, May 22nd. Finally, Canaccord Genuity Group set a $74.00 price objective on shares of Kratos Defense & Security Solutions and gave the stock a "buy" rating in a research note on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $57.64.

Kratos Defense & Security Solutions Stock Down 1.4%

The stock has a market capitalization of $10.73 billion, a price-to-earnings ratio of 635.96 and a beta of 1.05. The company has a debt-to-equity ratio of 0.12, a quick ratio of 3.88 and a current ratio of 4.43. The business has a 50-day moving average of $58.50 and a 200-day moving average of $42.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share for the quarter, beating the consensus estimate of $0.09 by $0.02. The company had revenue of $351.50 million during the quarter, compared to the consensus estimate of $305.67 million. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%.Kratos Defense & Security Solutions's revenue was up 17.1% compared to the same quarter last year. During the same period in the previous year, the company posted $0.14 EPS. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. On average, sell-side analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insider Activity

In other Kratos Defense & Security Solutions news, insider Stacey G. Rock sold 4,000 shares of the business's stock in a transaction that occurred on Friday, August 1st. The stock was sold at an average price of $55.51, for a total value of $222,040.00. Following the completion of the sale, the insider owned 42,154 shares in the company, valued at approximately $2,339,968.54. The trade was a 8.67% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Phillip D. Carrai sold 6,000 shares of the company's stock in a transaction that occurred on Friday, August 15th. The stock was sold at an average price of $67.78, for a total value of $406,680.00. Following the sale, the insider owned 264,074 shares of the company's stock, valued at $17,898,935.72. This trade represents a 2.22% decrease in their position. The disclosure for this sale can be found here. Insiders have sold 58,419 shares of company stock valued at $3,242,534 over the last 90 days. Insiders own 2.37% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently bought and sold shares of KTOS. The Manufacturers Life Insurance Company grew its holdings in Kratos Defense & Security Solutions by 5.7% during the fourth quarter. The Manufacturers Life Insurance Company now owns 80,760 shares of the aerospace company's stock worth $2,130,000 after acquiring an additional 4,377 shares during the period. Northern Trust Corp grew its holdings in Kratos Defense & Security Solutions by 2.0% during the fourth quarter. Northern Trust Corp now owns 1,798,339 shares of the aerospace company's stock worth $47,440,000 after acquiring an additional 35,223 shares during the period. Comerica Bank grew its holdings in Kratos Defense & Security Solutions by 7.0% during the fourth quarter. Comerica Bank now owns 126,501 shares of the aerospace company's stock worth $3,337,000 after acquiring an additional 8,234 shares during the period. Ameriprise Financial Inc. grew its holdings in Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Ameriprise Financial Inc. now owns 3,130,109 shares of the aerospace company's stock worth $82,576,000 after acquiring an additional 203,245 shares during the period. Finally, Baird Financial Group Inc. grew its holdings in Kratos Defense & Security Solutions by 32.1% during the fourth quarter. Baird Financial Group Inc. now owns 17,753 shares of the aerospace company's stock worth $468,000 after acquiring an additional 4,314 shares during the period. Institutional investors and hedge funds own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

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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