Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 5.6% - Here's Why

Key Points

• Kratos Defense & Security Solutions shares fell 5.6% on Wednesday, trading as low as $47.78 after closing at $50.80, with volume below its daily average.
• Despite the drop, analysts remain broadly upbeat: the stock has a consensus rating of “Moderate Buy” and an average price target of $101.35, though several firms recently trimmed their targets.
• The company’s latest earnings were solid, with Q1 revenue up 22.6% year over year to $371 million and EPS of $0.16, beating estimates; meanwhile, insiders have sold shares in recent weeks under pre-arranged trading plans.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price traded down 5.6% during trading on Wednesday . The stock traded as low as $47.78 and last traded at $47.95. 3,536,710 shares changed hands during trading, a decline of 19% from the average daily volume of 4,348,165 shares. The stock had previously closed at $50.80.

Analysts Set New Price Targets

Several research firms recently weighed in on KTOS. Jefferies Financial Group set a $80.00 price target on Kratos Defense & Security Solutions in a research note on Sunday, May 10th. Clear Str upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. BNP Paribas Exane boosted their target price on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. JPMorgan Chase & Co. raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and cut their target price for the stock from $99.00 to $82.00 in a research note on Friday, June 12th. Finally, Piper Sandler dropped their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock 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 assigned a Hold rating to the company. Based on data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and an average price target of $101.35.

Kratos Defense & Security Solutions Trading Down 5.6%

The stock has a fifty day simple moving average of $60.08 and a 200 day simple moving average of $79.19. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The firm has a market cap of $8.99 billion, a P/E ratio of 282.06 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. During the same period in the prior year, the company posted $0.12 earnings per share. The company's quarterly revenue was up 22.6% on a year-over-year basis. On average, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Deanna H. Lund sold 5,000 shares of the firm's stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $63.74, for a total value of $318,700.00. Following the sale, the chief financial officer owned 290,161 shares in the company, valued at approximately $18,494,862.14. This trade represents a 1.69% decrease in their ownership of the stock. The sale 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 David M. Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, June 5th. The stock was sold at an average price of $59.16, for a total transaction of $236,640.00. Following the completion of the sale, the insider directly owned 70,092 shares of the company's stock, valued at approximately $4,146,642.72. This trade represents a 5.40% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 196,278 shares of company stock worth $12,428,868. 1.50% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently modified their holdings of KTOS. Mcguire Capital Advisors Inc. bought a new position in Kratos Defense & Security Solutions in the fourth quarter valued at about $25,000. Atlantic Union Bankshares Corp lifted its stake in shares of Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares during the period. Vision Retirement LLC lifted its stake in shares of Kratos Defense & Security Solutions by 288.2% in 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 period. Rakuten Securities Inc. bought a new stake in Kratos Defense & Security Solutions during the second quarter valued at approximately $31,000. Finally, Caitlin John LLC bought a new stake in Kratos Defense & Security Solutions during the third quarter valued at approximately $32,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

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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