Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 3% - Here's Why

Key Points

• Kratos Defense & Security Solutions (NASDAQ: KTOS) shares fell about 3% on Thursday, trading as low as $48.21 and finishing near $48.85 on lighter-than-average volume.
• Despite the stock pullback, the company recently reported better-than-expected quarterly results, with EPS of $0.16 versus $0.13 expected and revenue of $371 million versus $345 million expected, up 22.6% year over year.
• Analyst sentiment remains generally positive, with the stock carrying a Moderate Buy consensus and an average target price of $103.41, even though several firms recently trimmed their price targets.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price traded down 3% during mid-day trading on Thursday . The company traded as low as $48.21 and last traded at $48.85. Approximately 3,192,448 shares were traded during trading, a decline of 30% from the average daily volume of 4,579,452 shares. The stock had previously closed at $50.38.

Analyst Upgrades and Downgrades

KTOS has been the subject of several research reports. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Wednesday, April 29th. Piper Sandler lowered their price objective on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a research report on Thursday, May 7th. Citizens Jmp dropped their price objective on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a research note on Friday, May 8th. BNP Paribas Exane upped their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. Finally, Royal Bank Of Canada decreased their target price on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research note on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company. Based on data from MarketBeat, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average target price of $103.41.

Kratos Defense & Security Solutions Stock Down 3.0%

The firm has a 50 day moving average of $55.92 and a two-hundred day moving average of $77.27. The stock has a market capitalization of $9.16 billion, a PE ratio of 287.35 and a beta of 1.07. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million for the quarter, compared to analysts' expectations 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 revenue was up 22.6% on a year-over-year basis. During the same period in the prior year, the company earned $0.12 EPS. Equities research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Phillip D. Carrai sold 6,500 shares of the company's stock in a transaction on Friday, May 15th. The stock was sold at an average price of $52.13, for a total value of $338,845.00. Following the completion of the transaction, the insider directly owned 221,550 shares in the company, valued at approximately $11,549,401.50. This represents a 2.85% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Jonah Adelman sold 31,348 shares of the company's stock in a transaction dated Tuesday, May 26th. The shares were sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the transaction, the insider directly owned 8,000 shares of the company's stock, 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 sold a total of 157,453 shares of company stock worth $9,264,423 in the last three months. 1.50% of the stock is currently owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

Large investors have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. purchased a new stake in shares of Kratos Defense & Security Solutions during the fourth quarter worth about $25,000. Atlantic Union Bankshares Corp grew its stake 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 purchasing an additional 380 shares in the last quarter. Murphy & Mullick Capital Management Corp grew its stake 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 purchasing an additional 225 shares in the last quarter. Vision Retirement LLC increased its holdings in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after purchasing an additional 317 shares during the last quarter. Finally, CI Investments Inc. increased its holdings in Kratos Defense & Security Solutions by 142.7% during the 3rd quarter. CI Investments Inc. now owns 432 shares of the aerospace company's stock worth $39,000 after purchasing an additional 254 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

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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