Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 9.2% - Here's What Happened

Key Points

• Kratos Defense & Security Solutions (NASDAQ:KTOS) shares fell 9.2% on Wednesday, trading as low as $52.41 and well below the prior close of $57.33 on lighter-than-average volume.
• Despite the drop, the company’s latest quarterly results were strong: earnings came in at $0.16 per share versus $0.13 expected, and revenue rose 22.6% year over year to $371 million.
• Analyst sentiment remains constructive overall, with an average Moderate Buy rating and a mean price target of $96.28, even though some firms recently trimmed targets or reiterated neutral/hold views.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price traded down 9.2% during trading on Wednesday . The company traded as low as $52.41 and last traded at $52.0670. 975,577 shares traded hands during trading, a decline of 77% from the average session volume of 4,207,478 shares. The stock had previously closed at $57.33.

Analysts Set New Price Targets

Several equities analysts have recently issued reports on the stock. Weiss Ratings reissued a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Jefferies Financial Group set a $80.00 price target on Kratos Defense & Security Solutions in a report on Sunday. UBS Group reissued a "neutral" rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Canaccord Genuity Group lifted their price target on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Finally, Truist Financial raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Friday, May 1st. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average target price of $96.28.

Kratos Defense & Security Solutions Stock Performance

The company has a market cap of $9.83 billion, a P/E ratio of 308.62 and a beta of 1.06. The stock has a 50 day moving average price of $74.57 and a two-hundred day moving average price of $83.78. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. During the same quarter in the prior year, the business posted $0.12 earnings per share. Kratos Defense & Security Solutions's revenue was up 22.6% compared to the same quarter last year. On average, research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction on Tuesday, February 17th. The stock was sold at an average price of $90.91, for a total value of $590,915.00. Following the sale, the insider owned 213,325 shares of the company's stock, valued at approximately $19,393,375.75. This trade represents a 2.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, VP De Burgreen Maria Cervantes sold 6,270 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, March 16th. The shares were sold at an average price of $89.29, for a total value of $559,848.30. Following the completion of the transaction, the vice president owned 59,369 shares in the company, valued at approximately $5,301,058.01. The trade was a 9.55% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 173,027 shares of company stock valued at $13,754,040 over the last three months. 1.50% of the stock is owned by corporate insiders.

Institutional Trading of Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently modified their holdings of the business. Royal Bank of Canada raised its stake in Kratos Defense & Security Solutions by 22.6% during the first quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock worth $5,655,000 after acquiring an additional 35,098 shares in the last quarter. Amundi acquired a new stake in shares of Kratos Defense & Security Solutions in the 1st quarter valued at approximately $791,000. NewEdge Advisors LLC grew its holdings in shares of Kratos Defense & Security Solutions by 64.4% during the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock valued at $39,000 after purchasing an additional 515 shares during the last quarter. Jones Financial Companies Lllp increased its position in Kratos Defense & Security Solutions by 178.0% during the 1st quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock worth $108,000 after purchasing an additional 2,286 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Kratos Defense & Security Solutions by 11.7% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock worth $11,686,000 after purchasing an additional 41,265 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors.

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.

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