Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 2.8% - Should You Sell?

Key Points

• Shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) fell 2.8%, with a trading range between $62.64 and $63.02, indicating significant market activity and a 75% drop in trading volume from average levels.
• Analysts have upgraded KTOS, with price targets increased by several firms, including Royal Bank Of Canada upping its target from $50 to $65, suggesting a consensus rating of "Moderate Buy" and an average target price of $57.64.
• Insider selling has been notable, with key executives selling shares; Stacey G. Rock sold 4,000 shares at an average price of $64.19, representing a decrease of 9.49% in ownership, amidst a backdrop of increasing institutional investment in the company.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) fell 2.8% during trading on Monday . The stock traded as low as $62.64 and last traded at $63.02. 838,837 shares changed hands during mid-day trading, a decline of 75% from the average session volume of 3,297,885 shares. The stock had previously closed at $64.81.

Analyst Upgrades and Downgrades

KTOS has been the topic of a number of research reports. Benchmark boosted their target price 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. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 22nd. Royal Bank Of Canada lifted their price objective on Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the stock an "outperform" rating in a report on Friday, August 8th. Stifel Nicolaus boosted their price target on Kratos Defense & Security Solutions from $54.00 to $70.00 and gave the stock a "buy" rating in a report on Monday, July 21st. Finally, The Goldman Sachs Group raised 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 equities research 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 data from MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $57.64.

Kratos Defense & Security Solutions Stock Down 1.3%

The firm has a market cap of $10.80 billion, a price-to-earnings ratio of 639.64 and a beta of 1.05. The company has a quick ratio of 3.88, a current ratio of 4.43 and a debt-to-equity ratio of 0.12. The firm has a fifty day moving average price of $58.88 and a 200-day moving average price of $42.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Thursday, August 7th. The aerospace company reported $0.11 EPS for the quarter, beating analysts' consensus estimates 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 company had revenue of $351.50 million during the quarter, compared to the consensus estimate of $305.67 million. During the same period in the previous year, the firm posted $0.14 earnings per share. Kratos Defense & Security Solutions's quarterly revenue was up 17.1% compared to the same quarter last year. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Stacey G. Rock sold 4,000 shares of the company's stock in a transaction dated Tuesday, September 2nd. The shares were sold at an average price of $64.19, for a total value of $256,760.00. Following the sale, the insider owned 38,128 shares in the company, valued at approximately $2,447,436.32. This represents a 9.49% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction on Tuesday, August 19th. The shares were sold at an average price of $65.10, for a total transaction of $325,500.00. Following the sale, the chief financial officer owned 313,327 shares in the company, valued at $20,397,587.70. The trade was a 1.57% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 68,177 shares of company stock valued at $3,876,673 over the last ninety days. 2.37% of the stock is currently owned by corporate insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. boosted its position in shares of Kratos Defense & Security Solutions by 11.7% in the 1st quarter. Vanguard Group Inc. now owns 16,447,687 shares of the aerospace company's stock worth $488,332,000 after buying an additional 1,728,179 shares in the last quarter. Franklin Resources Inc. raised its holdings in Kratos Defense & Security Solutions by 29.6% in the 2nd quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company's stock valued at $236,268,000 after acquiring an additional 1,162,577 shares in the last quarter. ARK Investment Management LLC increased its stake in shares of Kratos Defense & Security Solutions by 22.2% in the second quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company's stock valued at $209,382,000 after buying an additional 818,104 shares in the last quarter. Geode Capital Management LLC grew its position in shares of Kratos Defense & Security Solutions by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,949,763 shares of the aerospace company's stock worth $183,490,000 after buying an additional 301,135 shares during the period. Finally, Invesco Ltd. boosted its holdings in shares of Kratos Defense & Security Solutions by 18.1% in the 2nd quarter. Invesco Ltd. now owns 2,837,005 shares of the aerospace company's stock valued at $131,779,000 after buying an additional 434,561 shares during the last quarter. Institutional investors and hedge funds own 75.92% of the company's stock.

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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