Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 2.2% - Here's Why

Key Points

• Kratos Defense & Security Solutions (NASDAQ:KTOS) saw its stock price increase by 2.2%, closing at $70.27, with trading volume down 44% from its average.
• Recent analyst reports show a consensus rating of "Moderate Buy" for KTOS, with target prices ranging from $48.00 to $70.00.
• The company reported earnings of $0.11 per share, exceeding expectations, with revenue of $351.50 million, reflecting a 17.1% year-over-year increase.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price rose 2.2% during mid-day trading on Thursday . The stock traded as high as $72.70 and last traded at $70.27. Approximately 1,869,080 shares traded hands during mid-day trading, a decline of 44% from the average daily volume of 3,339,610 shares. The stock had previously closed at $68.75.

Analyst Ratings Changes

A number of research firms have weighed in on KTOS. Wall Street Zen downgraded shares of Kratos Defense & Security Solutions from a "hold" rating to a "sell" rating in a research report on Thursday, May 22nd. Stifel Nicolaus increased their target price on shares of Kratos Defense & Security Solutions from $54.00 to $70.00 and gave the company a "buy" rating in a research report on Monday, July 21st. JMP Securities set a $70.00 price target on Kratos Defense & Security Solutions and gave the stock a "market outperform" rating in a report on Tuesday, July 22nd. Benchmark increased their price target on Kratos Defense & Security Solutions from $48.00 to $50.00 and gave the stock a "buy" rating in a report on Tuesday, July 8th. Finally, Noble Financial restated an "outperform" rating on shares of Kratos Defense & Security Solutions in a report on Monday, August 11th. One research analyst has rated the stock with a sell rating, two have assigned a hold rating, thirteen have issued a buy rating and one has given a strong buy rating to the company's stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $57.64.

Kratos Defense & Security Solutions Price Performance

The firm has a market capitalization of $11.56 billion, a PE ratio of 685.07 and a beta of 1.04. The business has a 50-day moving average of $51.65 and a 200 day moving average of $38.88. The company has a current ratio of 4.43, a quick ratio of 3.88 and a debt-to-equity ratio of 0.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.09 by $0.02. Kratos Defense & Security Solutions had a return on equity of 3.10% and a net margin of 1.20%. The firm had revenue of $351.50 million during the quarter, compared to analyst estimates of $305.67 million. During the same period last year, the firm posted $0.14 EPS. The business's revenue was up 17.1% compared to the same quarter last year. As a group, research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, July 28th. The stock was sold at an average price of $58.53, for a total value of $409,710.00. Following the completion of the sale, the insider owned 353,451 shares of the company's stock, valued at approximately $20,687,487.03. This trade represents a 1.94% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Stacey G. Rock sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Friday, August 1st. The shares were sold at an average price of $55.51, for a total value of $222,040.00. Following the transaction, the insider directly owned 42,154 shares of the company's stock, valued at $2,339,968.54. The trade was a 8.67% decrease in their position. The disclosure for this sale can be found here. In the last quarter, insiders sold 101,786 shares of company stock worth $4,443,682. Insiders own 2.37% of the company's stock.

Institutional Inflows and Outflows

A number of hedge funds have recently added to or reduced their stakes in KTOS. Costello Asset Management INC purchased a new position in Kratos Defense & Security Solutions during the 1st quarter valued at about $29,000. Aspect Partners LLC grew its holdings in Kratos Defense & Security Solutions by 1,900.0% during the 1st quarter. Aspect Partners LLC now owns 1,000 shares of the aerospace company's stock valued at $30,000 after buying an additional 950 shares in the last quarter. Smallwood Wealth Investment Management LLC bought a new stake in shares of Kratos Defense & Security Solutions during the 1st quarter valued at about $30,000. Larson Financial Group LLC bought a new stake in shares of Kratos Defense & Security Solutions during the 1st quarter valued at about $30,000. Finally, TD Waterhouse Canada Inc. bought a new stake in shares of Kratos Defense & Security Solutions during the 2nd quarter valued at about $30,000. Hedge funds and other institutional investors 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.