Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 5.2% - Here's What Happened

Key Points

• Kratos shares rose 5.2% to $46.17 in midday trading, although volume was 28% below the average daily level.
• Recent analyst actions were mixed, but the stock maintains a “Moderate Buy” consensus with an average price target of $101.29. Several firms raised its rating while others cut their targets.
• Kratos exceeded quarterly expectations, reporting $0.16 EPS and $371 million in revenue, with revenue up 22.6% year over year. Insiders have sold 144,036 shares worth about $8.1 million over the past 90 days.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price shot up 5.2% during mid-day trading on Thursday . The company traded as high as $46.41 and last traded at $46.17. Approximately 3,208,137 shares traded hands during mid-day trading, a decline of 28% from the average daily volume of 4,475,554 shares. The stock had previously closed at $43.88.

Analyst Upgrades and Downgrades

Several research firms recently weighed in on KTOS. BTIG Research decreased their target price on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Truist Financial raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Friday, May 1st. Citizens Jmp reduced their price target on 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. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Finally, Piper Sandler lowered their target price on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $101.29.

Kratos Defense & Security Solutions Trading Up 5.2%

The business has a 50 day moving average price of $53.14 and a 200-day moving average price of $73.61. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The firm has a market cap of $8.66 billion, a price-to-earnings ratio of 271.59 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings results 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 return on equity of 2.82% and a net margin of 2.08%.The business had revenue of $371.00 million for the quarter, compared to analysts' expectations of $345.00 million. During the same quarter in the previous year, the firm posted $0.12 earnings per share. The company's revenue was up 22.6% compared to the same quarter last year. As a group, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Jonah Adelman sold 31,348 shares of the business's stock in a transaction that occurred on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the completion of the transaction, the insider owned 8,000 shares in the company, valued at $456,480. The trade was a 79.67% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Phillip D. Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $52.13, for a total value of $338,845.00. Following the sale, the insider directly owned 221,550 shares in the company, valued at approximately $11,549,401.50. This trade represents a 2.85% decrease in their position. 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. In the last ninety days, insiders have sold 144,036 shares of company stock valued at $8,110,167. 1.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

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

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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