Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 4.6% - What's Next?

Key Points

• KTOS jumped 4.6% intraday to $73.55 (high $74.10) on Monday, with ~2.53M shares traded—about 41% below its average daily volume.
• Analysts remain largely positive, with a consensus "Moderate Buy" rating and a $98.28 average price target after several recent upgrades and price-target increases (e.g., Goldman Sachs $125, KeyCorp $130, Jefferies upgraded to "buy").
• Q results beat expectations (EPS $0.18 vs. $0.14 est.; revenue $345.1M, +21.9% YoY), but the stock trades at a rich valuation (PE ~566) and insiders sold about $15.3M of shares last quarter.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price rose 4.6% during mid-day trading on Monday . The company traded as high as $74.10 and last traded at $73.55. Approximately 2,531,435 shares were traded during trading, a decline of 41% from the average daily volume of 4,309,304 shares. The stock had previously closed at $70.34.

Analyst Upgrades and Downgrades

KTOS has been the topic of a number of analyst reports. The Goldman Sachs Group increased their price objective on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a "buy" rating in a research note on Tuesday, January 20th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. KeyCorp increased their price target on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an "overweight" rating in a report on Wednesday, January 28th. Jefferies Financial Group upgraded shares of Kratos Defense & Security Solutions from a "hold" rating to a "buy" rating and set a $85.00 price target on the stock in a research report on Monday, April 6th. Finally, JonesTrading started coverage on shares of Kratos Defense & Security Solutions in a report on Monday, January 5th. They issued a "buy" rating on the stock. One research analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have given a Hold rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and a consensus price target of $98.28.

Kratos Defense & Security Solutions Trading Up 4.6%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06. The stock has a market cap of $13.78 billion, a PE ratio of 565.81 and a beta of 1.22. The firm has a 50-day moving average price of $85.77 and a 200-day moving average price of $87.68.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.04. Kratos Defense & Security Solutions had a net margin of 1.63% and a return on equity of 3.34%. The business had revenue of $345.10 million for the quarter, compared to analysts' expectations of $327.51 million. During the same quarter in the prior year, the business earned $0.13 EPS. The business's revenue for the quarter was up 21.9% compared to the same quarter last year. As a group, equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other news, VP De Burgreen Maria Cervantes sold 6,270 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $89.29, for a total transaction of $559,848.30. Following the completion of the transaction, the vice president directly owned 59,369 shares in the company, valued at approximately $5,301,058.01. This represents a 9.55% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Steven S. Fendley sold 7,000 shares of the business's stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $92.57, for a total transaction of $647,990.00. Following the transaction, the insider owned 334,648 shares in the company, valued at $30,978,365.36. This trade represents a 2.05% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 173,786 shares of company stock worth $15,310,486 in the last quarter. 1.50% of the stock is currently owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently made changes to their positions in KTOS. Mcguire Capital Advisors Inc. bought a new stake in shares of Kratos Defense & Security Solutions during the fourth quarter worth $25,000. Atlantic Union Bankshares Corp raised its holdings in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares in the last quarter. Rakuten Securities Inc. bought a new position in Kratos Defense & Security Solutions in the second quarter worth about $31,000. Bayforest Capital Ltd bought a new position in Kratos Defense & Security Solutions in the third quarter worth about $32,000. Finally, Caitlin John LLC purchased a new stake in shares of Kratos Defense & Security Solutions during the third quarter worth about $32,000. 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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