Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 4.9% - What's Next?

Key Points

• Kratos Defense & Security Solutions (NASDAQ: KTOS) shares rose 4.9% on Tuesday, trading as high as $48.92 after closing at $45.94 the prior day.
• Analysts remain broadly positive on the stock, with an average rating of “Moderate Buy” and a consensus price target of $101.29, though individual targets vary widely.
• The company’s latest earnings beat expectations, with $0.16 EPS and $371 million in revenue, while revenue grew 22.6% year over year; however, insiders have been selling shares in recent months.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) traded up 4.9% during mid-day trading on Tuesday . The stock traded as high as $48.92 and last traded at $48.21. 3,313,203 shares traded hands during mid-day trading, a decline of 27% from the average session volume of 4,538,547 shares. The stock had previously closed at $45.94.

Analysts Set New Price Targets

Several equities research analysts recently commented on the company. Jefferies Financial Group reaffirmed a "buy" rating and issued a $80.00 price target on shares of Kratos Defense & Security Solutions in a report on Wednesday, July 8th. Canaccord Genuity Group upped their target price on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a report on Thursday, May 7th. Citizens Jmp decreased their price objective on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a research report on Friday, May 8th. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. Finally, Wedbush started 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. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company's stock. According to MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus target price of $101.29.

Kratos Defense & Security Solutions Trading Up 4.9%

The firm has a market cap of $9.04 billion, a PE ratio of 283.59 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The business has a 50-day moving average price of $54.04 and a two-hundred day moving average price of $75.53.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 EPS 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 for the quarter, compared to analyst estimates of $345.00 million. During the same period in the previous year, the firm earned $0.12 EPS. The business's revenue for the quarter was up 22.6% compared to the same quarter last year. Analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current year.

Insider Buying and Selling

In related news, SVP Marie Mendoza sold 1,500 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $57.93, for a total transaction of $86,895.00. Following the completion of the transaction, the senior vice president directly owned 64,447 shares in the company, valued at $3,733,414.71. The trade was a 2.27% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider David M. Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Wednesday, July 8th. The stock was sold at an average price of $50.45, for a total value of $201,800.00. Following the transaction, the insider owned 66,238 shares of the company's stock, valued at $3,341,707.10. This represents a 5.69% 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 have sold 148,036 shares of company stock valued at $8,455,857. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds have recently bought and sold shares of the stock. Harbor Investment Advisory LLC purchased a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at $25,000. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions during the 4th quarter worth about $25,000. Atlantic Union Bankshares Corp raised its stake in Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after purchasing an additional 380 shares during the last quarter. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after purchasing an additional 317 shares during the last quarter. Finally, Rakuten Securities Inc. purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter valued at about $31,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

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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