Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 5.2% - Here's Why

Key Points

• KTOS fell 5.2% to about $71.94 in midday trading (traded as low as $71.70) on volume of ~3.17M shares, down 27% from its average session volume.
• The company beat the quarter—EPS $0.18 vs. $0.14 and revenue $345.1M (up 21.9% YoY)—but still trades at a very high P/E of 553.43 with a market cap of $13.48B.
• Analysts are broadly positive (consensus Moderate Buy, average target $98.28) with several firms raising targets (KeyCorp $130, B. Riley $128), while insiders sold ~371,500 shares (~$34.7M) over the last 90 days and now own 2.37% of the stock.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price fell 5.2% during mid-day trading on Friday . The company traded as low as $71.70 and last traded at $71.94. 3,165,309 shares were traded during trading, a decline of 27% from the average session volume of 4,355,520 shares. The stock had previously closed at $75.86.

Wall Street Analyst Weigh In

KTOS has been the topic of a number of recent research reports. KeyCorp raised their price objective on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an "overweight" rating in a research note on Wednesday, January 28th. Cantor Fitzgerald reissued an "overweight" rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Piper Sandler initiated coverage on Kratos Defense & Security Solutions in a research report on Wednesday, January 21st. They issued a "neutral" rating and a $99.00 price target on the stock. Noble Financial reaffirmed an "outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Finally, B. Riley Financial upped their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a "buy" rating in a research report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $98.28.

Kratos Defense & Security Solutions Stock Down 5.2%

The company has a quick ratio of 3.46, a current ratio of 4.06 and a debt-to-equity ratio of 0.05. The firm has a 50 day moving average of $96.15 and a two-hundred day moving average of $87.80. The firm has a market capitalization of $13.48 billion, a price-to-earnings ratio of 553.43 and a beta of 1.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, topping the consensus estimate of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The firm had revenue of $345.10 million during the quarter, compared to the consensus estimate of $327.51 million. During the same quarter in the previous year, the firm earned $0.13 earnings per share. The business's quarterly revenue was up 21.9% on a year-over-year basis. As a group, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insiders Place Their Bets

In other news, insider Stacey G. Rock sold 16,568 shares of the company's stock in a transaction on Monday, January 12th. The shares were sold at an average price of $116.74, for a total transaction of $1,934,148.32. Following the completion of the transaction, the insider directly owned 26,487 shares in the company, valued at approximately $3,092,092.38. This represents a 38.48% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider David M. Carter sold 8,123 shares of the company's stock in a transaction on Thursday, January 8th. The stock was sold at an average price of $105.40, for a total transaction of $856,164.20. Following the transaction, the insider owned 81,816 shares of the company's stock, valued at $8,623,406.40. This trade represents a 9.03% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 371,500 shares of company stock worth $34,664,848 over the last 90 days. Insiders own 2.37% of the company's stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently bought and sold shares of KTOS. Geode Capital Management LLC raised its position in Kratos Defense & Security Solutions by 3.5% in the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company's stock valued at $337,565,000 after purchasing an additional 148,622 shares during the last quarter. Morgan Stanley boosted its stake in shares of Kratos Defense & Security Solutions by 3.9% during the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company's stock valued at $251,345,000 after purchasing an additional 124,607 shares in the last quarter. First Trust Advisors LP grew its holdings in shares of Kratos Defense & Security Solutions by 29.5% during the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock worth $280,402,000 after purchasing an additional 698,778 shares during the last quarter. Invesco Ltd. increased its stake in shares of Kratos Defense & Security Solutions by 7.4% in the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company's stock valued at $278,331,000 after buying an additional 209,189 shares during the period. Finally, Hood River Capital Management LLC increased its stake in shares of Kratos Defense & Security Solutions by 13.3% in the second quarter. Hood River Capital Management LLC now owns 2,755,446 shares of the aerospace company's stock valued at $127,990,000 after buying an additional 324,140 shares during the period. Institutional investors own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.