Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 5% - What's Next?

Key Points

• Kratos Defense & Security Solutions (NASDAQ:KTOS) saw its stock price drop by 5% during trading, with the stock closing at $90.58 after reaching a low of $89.16.
• Various analysts have issued a consensus rating of "Moderate Buy" for KTOS, with price targets ranging from $77.36 to $125.00, reflecting strong optimism about the company's growth prospects.
• Insider sales have occurred, including notable transactions by insider Steven S. Fendley and Stacey G. Rock, indicating a 2.02% and 10.11% decrease in their respective holdings, which may be of interest to investors closely watching insider activities.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price dropped 5% during trading on Wednesday . The stock traded as low as $89.16 and last traded at $90.58. Approximately 5,120,341 shares changed hands during trading, an increase of 42% from the average daily volume of 3,609,647 shares. The stock had previously closed at $95.30.

Wall Street Analysts Forecast Growth

KTOS has been the subject of several analyst reports. BTIG Research upgraded Kratos Defense & Security Solutions from a "neutral" rating to a "buy" rating and set a $80.00 price target for the company in a research note on Thursday, August 14th. Truist Financial lifted their price objective on Kratos Defense & Security Solutions from $78.00 to $125.00 and gave the stock a "buy" rating in a research report on Wednesday. Canaccord Genuity Group lifted their price objective on Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the stock a "buy" rating in a research report on Thursday, October 9th. Raymond James Financial reiterated a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, August 8th. Finally, Robert W. Baird raised their price objective on Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the stock an "outperform" rating in a report on Friday, September 26th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $77.36.

Kratos Defense & Security Solutions Trading Down 5.0%

The company has a market cap of $15.29 billion, a price-to-earnings ratio of 905.89 and a beta of 1.12. The company has a current ratio of 4.43, a quick ratio of 3.88 and a debt-to-equity ratio of 0.12. The firm has a 50-day moving average price of $76.06 and a 200 day moving average price of $53.02.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.09 by $0.02. The business had revenue of $351.50 million for 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%.The business's revenue was up 17.1% on a year-over-year basis. During the same quarter last year, the business posted $0.14 EPS. 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.

Insider Activity

In other news, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, September 29th. The stock was sold at an average price of $88.88, for a total transaction of $622,160.00. Following the transaction, the insider directly owned 339,419 shares in the company, valued at approximately $30,167,560.72. This trade represents a 2.02% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Stacey G. Rock sold 3,846 shares of Kratos Defense & Security Solutions stock in a transaction on Wednesday, October 1st. The stock was sold at an average price of $92.02, for a total value of $353,908.92. Following the completion of the transaction, the insider owned 34,202 shares in the company, valued at $3,147,268.04. The trade was a 10.11% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 78,276 shares of company stock worth $5,678,021 over the last ninety days. 2.37% of the stock is currently owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in KTOS. Sound Income Strategies LLC acquired a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth about $51,000. Rakuten Securities Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth about $31,000. TD Waterhouse Canada Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth about $30,000. Farther Finance Advisors LLC lifted its position in shares of Kratos Defense & Security Solutions by 129.0% during the 2nd quarter. Farther Finance Advisors LLC now owns 893 shares of the aerospace company's stock worth $41,000 after purchasing an additional 503 shares during the last quarter. Finally, Costello Asset Management INC acquired a new position in shares of Kratos Defense & Security Solutions during the 1st quarter worth about $29,000. 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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