Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 2.1% Higher - What's Next?

Key Points

• Kratos Defense & Security Solutions' stock rose 2.1%, closing at $91.18 after trading as high as $92.93, on a day when trading volume fell 24% from its average.
• Analysts have given mixed ratings, with one Strong Buy, twelve Buy, and four Hold ratings, while the consensus price target is $77.36.
• The company reported a 17.1% increase in revenue year-over-year, totaling $351.50 million for the last quarter, and earnings per share of $0.11, exceeding expectations.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) traded up 2.1% during trading on Friday . The company traded as high as $92.93 and last traded at $91.18. 2,732,016 shares changed hands during mid-day trading, a decline of 24% from the average session volume of 3,617,054 shares. The stock had previously closed at $89.32.

Analyst Ratings Changes

A number of equities analysts have commented on the stock. Weiss Ratings reiterated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Wednesday, October 8th. Robert W. Baird boosted their price objective on shares of Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the stock an "outperform" rating in a report on Friday, September 26th. Stifel Nicolaus boosted their price objective on shares of Kratos Defense & Security Solutions from $70.00 to $112.00 and gave the stock a "buy" rating in a report on Wednesday, October 15th. JPMorgan Chase & Co. boosted their target price on shares of Kratos Defense & Security Solutions from $44.00 to $48.00 and gave the stock a "neutral" rating in a research report on Monday, June 30th. Finally, Royal Bank Of Canada boosted their target price on shares of Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the stock an "outperform" rating in a research report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and four have assigned a Hold rating to the company's stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus price target of $77.36.

Kratos Defense & Security Solutions Price Performance

The company's 50-day moving average price is $79.24 and its two-hundred day moving average price is $55.66. The company has a market cap of $15.39 billion, a P/E ratio of 911.89 and a beta of 1.12. The company has a current ratio of 4.43, a quick ratio of 3.88 and a debt-to-equity ratio of 0.12.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share for the quarter, topping the consensus estimate of $0.09 by $0.02. Kratos Defense & Security Solutions had a net margin of 1.20% and a return on equity of 3.10%. The company had revenue of $351.50 million during the quarter, compared to the consensus estimate of $305.67 million. During the same quarter in the previous year, the firm earned $0.14 EPS. The company's revenue was up 17.1% on a year-over-year basis. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. As a group, sell-side analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, CFO Deanna H. Lund sold 5,000 shares of the business's stock in a transaction dated Wednesday, October 1st. The shares were sold at an average price of $92.03, for a total transaction of $460,150.00. Following the completion of the sale, the chief financial officer owned 308,069 shares of the company's stock, valued at $28,351,590.07. This represents a 1.60% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Phillip D. Carrai sold 6,000 shares of the business's stock in a transaction dated Wednesday, October 15th. The shares were sold at an average price of $96.90, for a total transaction of $581,400.00. Following the sale, the insider directly owned 252,041 shares of the company's stock, valued at approximately $24,422,772.90. This represents a 2.33% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 85,716 shares of company stock worth $6,399,245. 2.37% of the stock is owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Institutional investors have recently modified their holdings of the business. Wealth Enhancement Advisory Services LLC bought a new stake in shares of Kratos Defense & Security Solutions during the 1st quarter valued at about $594,000. Corebridge Financial Inc. grew its position in Kratos Defense & Security Solutions by 5.2% in the 1st quarter. Corebridge Financial Inc. now owns 77,422 shares of the aerospace company's stock worth $2,299,000 after purchasing an additional 3,860 shares during the last quarter. State of Alaska Department of Revenue grew its position in Kratos Defense & Security Solutions by 15.8% in the 2nd quarter. State of Alaska Department of Revenue now owns 98,033 shares of the aerospace company's stock worth $4,552,000 after purchasing an additional 13,345 shares during the last quarter. ARK Investment Management LLC grew its position in Kratos Defense & Security Solutions by 22.2% in the 2nd quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company's stock worth $209,382,000 after purchasing an additional 818,104 shares during the last quarter. Finally, Trivium Point Advisory LLC grew its position in Kratos Defense & Security Solutions by 25.0% in the 2nd quarter. Trivium Point Advisory LLC now owns 22,406 shares of the aerospace company's stock worth $1,041,000 after purchasing an additional 4,483 shares during the last quarter. Institutional investors own 75.92% of the company's stock.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.

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