Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 3.2% - Time to Buy?

Key Points

• KTOS shares rose 3.2% on Thursday, trading as high as $51.49 before closing at $49.44 on volume above its daily average.
• Analysts remain broadly positive, with multiple firms reiterating or upgrading to Buy/Strong Buy; the consensus rating is Moderate Buy with an average price target of $101.29.
• The company recently beat expectations in its latest quarter, posting $0.16 EPS versus $0.13 expected and revenue of $371 million, up 22.6% year over year.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) traded up 3.2% during trading on Thursday . The stock traded as high as $51.49 and last traded at $49.44. 4,776,138 shares changed hands during trading, an increase of 6% from the average session volume of 4,526,285 shares. The stock had previously closed at $47.89.

Wall Street Analysts Forecast Growth

KTOS has been the topic of a number of research analyst reports. Wedbush assumed coverage on Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They issued an "outperform" rating and a $85.00 price target on the stock. Clear Str raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Citizens Jmp reduced their target price on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a report on Friday, May 8th. BTIG Research cut their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating for the company in a report on Thursday, May 7th. Finally, Truist Financial upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat, the stock has an average rating of "Moderate Buy" and a consensus target price of $101.29.

Kratos Defense & Security Solutions Stock Performance

The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The stock's 50-day moving average is $53.77 and its 200-day moving average is $75.14. The stock has a market cap of $9.27 billion, a price-to-earnings ratio of 290.82 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating analysts' consensus estimates 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 for the quarter, compared to the consensus estimate of $345.00 million. During the same quarter last year, the firm posted $0.12 EPS. The business's revenue for the quarter was up 22.6% compared to the same quarter last year. On average, analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Stacey G. Rock sold 4,675 shares of the stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $50.00, for a total transaction of $233,750.00. Following the sale, the insider directly owned 9,600 shares of the company's stock, valued at approximately $480,000. This represents a 32.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at 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 Kratos Defense & Security Solutions stock in a transaction dated Monday, June 29th. The shares were sold at an average price of $48.37, for a total transaction of $338,590.00. Following the completion of the transaction, the insider directly owned 302,126 shares of the company's stock, valued at $14,613,834.62. This trade represents a 2.26% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 148,036 shares of company stock valued at $8,455,857. 1.50% of the stock is currently owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

Hedge funds have recently bought and sold shares of the company. Greenleaf Trust boosted its stake in Kratos Defense & Security Solutions by 2.7% in the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock worth $291,000 after purchasing an additional 100 shares in the last quarter. LVW Advisors LLC grew its position in shares of Kratos Defense & Security Solutions by 3.0% during the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company's stock worth $278,000 after buying an additional 107 shares during the period. CENTRAL TRUST Co grew its holdings in Kratos Defense & Security Solutions by 7.3% during the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company's stock worth $129,000 after acquiring an additional 115 shares during the period. Quadrant Capital Group LLC grew its stake in shares of Kratos Defense & Security Solutions by 2.1% during the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock worth $449,000 after purchasing an additional 122 shares during the period. Finally, Parkside Financial Bank & Trust grew its position in shares of Kratos Defense & Security Solutions by 6.9% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock worth $148,000 after buying an additional 125 shares during the period. 75.92% of the stock is currently 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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