Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 5.6% - Time to Buy?

Key Points

• Kratos shares rose 5.6% to $49.21, with trading volume below its average. The stock has a $9.23 billion market capitalization and trades at a notably high price-to-earnings ratio of 289.47.
• Analysts maintain a generally positive outlook, with a consensus “Moderate Buy” rating and an average price target of $101.29, although several firms recently reduced their targets.
• The company beat quarterly expectations, reporting $0.16 in EPS versus a $0.13 estimate and $371 million in revenue, up 22.6% year over year. However, insiders sold about $7.8 million of shares over the past quarter, while institutional investors own 75.92% of the stock.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) rose 5.6% on Monday . The company traded as high as $49.42 and last traded at $49.21. Approximately 3,155,905 shares changed hands during trading, a decline of 29% from the average daily volume of 4,451,863 shares. The stock had previously closed at $46.60.

Wall Street Analyst Weigh In

A number of equities analysts have recently weighed in on the stock. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, July 17th. The Goldman Sachs Group decreased their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. BNP Paribas Exane boosted their price target on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a research note on Thursday, May 7th. Royal Bank Of Canada lowered their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. Finally, Canaccord Genuity Group raised their price objective on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and an average target price of $101.29.

Kratos Defense & Security Solutions Stock Up 5.6%

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 firm has a market capitalization of $9.23 billion, a price-to-earnings ratio of 289.47 and a beta of 1.07. The firm's 50-day moving average price is $52.77 and its 200 day moving average price is $72.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.Kratos Defense & Security Solutions's revenue was up 22.6% on a year-over-year basis. During the same quarter in the prior year, the company earned $0.12 EPS. Sell-side analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider David M. Carter sold 4,000 shares of the company's stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $50.45, for a total value of $201,800.00. Following the transaction, the insider directly owned 66,238 shares in the company, valued at approximately $3,341,707.10. This represents a 5.69% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Stacey G. Rock sold 4,675 shares of the firm's stock in a transaction dated Tuesday, June 30th. The stock was 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 in the company, valued at $480,000. This represents a 32.75% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 139,036 shares of company stock valued at $7,799,667. 1.50% of the stock is owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds have recently bought and sold shares of the company. BNP Paribas Financial Markets boosted its stake in Kratos Defense & Security Solutions by 245.2% in the 4th quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company's stock worth $45,673,000 after buying an additional 427,396 shares during the last quarter. New Age Alpha Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 435.1% during the 4th quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company's stock valued at $3,265,000 after acquiring an additional 34,973 shares during the last quarter. M&T Bank Corp increased its stake in shares of Kratos Defense & Security Solutions by 6,900.4% during the 4th quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company's stock valued at $13,423,000 after acquiring an additional 174,305 shares during the last quarter. Principal Financial Group Inc. lifted its holdings in shares of Kratos Defense & Security Solutions by 65.2% during the 4th quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company's stock worth $54,206,000 after acquiring an additional 281,811 shares during the period. Finally, B. Metzler seel. Sohn & Co. AG acquired a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter worth approximately $1,821,000. Institutional investors and hedge funds 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.