Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 2.7% - Here's Why

Key Points

• Kratos shares rose 2.7% to $62.42 in Monday trading, with volume slightly above average.
• The company reported a strong quarterly performance, with EPS of $0.21 beating estimates by $0.07 and revenue of $458.8 million exceeding expectations; revenue increased 30.5% year over year.
• Analysts maintain a consensus “Moderate Buy” rating and a $101.29 price target, although one firm downgraded the stock to sell and insiders have sold $8 million of shares over the past 90 days.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price was up 2.7% on Monday . The stock traded as high as $63.17 and last traded at $62.42. 4,540,038 shares traded hands during mid-day trading, an increase of 1% from the average session volume of 4,505,535 shares. The stock had previously closed at $60.77.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on KTOS shares. Weiss Ratings cut shares of Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Jefferies Financial Group set a $105.00 price target on shares of Kratos Defense & Security Solutions in a report on Wednesday, August 5th. Cantor Fitzgerald lowered their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Finally, BNP Paribas Exane lifted their price objective on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday, May 7th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $101.29.

Kratos Defense & Security Solutions Stock Performance

The company has a market cap of $11.72 billion, a PE ratio of 367.18 and a beta of 1.08. The business's 50-day moving average is $52.27 and its 200 day moving average is $70.15. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million during the quarter, compared to analysts' expectations of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.Kratos Defense & Security Solutions's quarterly revenue was up 30.5% compared to the same quarter last year. During the same period in the prior year, the business posted $0.11 EPS. On average, equities research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider David M. Carter sold 4,000 shares of the business's stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $55.90, for a total value of $223,600.00. Following the transaction, the insider owned 62,237 shares in the company, valued at approximately $3,479,048.30. The trade was a 6.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction dated Monday, July 27th. The shares were sold at an average price of $47.13, for a total transaction of $329,910.00. Following the transaction, the insider directly owned 295,120 shares of the company's stock, valued at approximately $13,909,005.60. This trade represents a 2.32% decrease in their ownership of the stock. 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. Insiders sold a total of 144,036 shares of company stock worth $8,034,017 over the last ninety days. Insiders own 1.50% of the company's stock.

Institutional Trading of Kratos Defense & Security Solutions

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