Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 2.2% Higher - Here's Why

Key Points

• Kratos Defense & Security Solutions' stock rose by 2.2%, with a high of $66.20 and a last trade price of $66.22 after closing at $64.78.
• Recent analyst reports saw price targets for the stock increase, with current ratings showing one "Strong Buy," thirteen "Buy," and two "Hold" ratings, indicating a consensus price target of $57.64.
• The company reported quarterly earnings of $0.11 EPS, surpassing estimates and achieving a 17.1% revenue growth year-over-year, with Q3 2025 guidance anticipating further growth.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price traded up 2.2% on Friday . The company traded as high as $66.20 and last traded at $66.22. 866,867 shares were traded during trading, a decline of 74% from the average session volume of 3,342,262 shares. The stock had previously closed at $64.78.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. JPMorgan Chase & Co. increased their price objective 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. Raymond James Financial reissued a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, August 8th. Benchmark raised their price target on shares of Kratos Defense & Security Solutions from $48.00 to $50.00 and gave the company a "buy" rating in a research report on Tuesday, July 8th. Cantor Fitzgerald reissued an "overweight" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, July 18th. Finally, B. Riley reissued a "buy" rating and issued a $72.00 price target (up previously from $55.00) on shares of Kratos Defense & Security Solutions in a research report on Monday, August 11th. One analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating and two have issued a Hold rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus price target of $57.64.

Kratos Defense & Security Solutions Stock Up 3.0%

The company has a debt-to-equity ratio of 0.12, a current ratio of 4.43 and a quick ratio of 3.88. The firm's 50-day simple moving average is $53.66 and its two-hundred day simple moving average is $39.73. The company has a market capitalization of $11.26 billion, a price-to-earnings ratio of 667.17 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Thursday, August 7th. The aerospace company reported $0.11 earnings per share (EPS) for the quarter, beating 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 for the quarter, compared to the consensus estimate of $305.67 million. During the same quarter in the prior year, the firm earned $0.14 earnings per share. The company's revenue for the quarter was up 17.1% compared to the same quarter last year. Kratos Defense & Security Solutions has set its FY 2025 guidance at EPS. Q3 2025 guidance at EPS. Sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction that occurred on Monday, July 28th. The shares were sold at an average price of $58.53, for a total transaction of $409,710.00. Following the transaction, the insider owned 353,451 shares of the company's stock, valued at approximately $20,687,487.03. This represents a 1.94% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Deanna H. Lund sold 5,000 shares of the company's stock in a transaction that occurred on Tuesday, August 19th. The shares were sold at an average price of $65.10, for a total transaction of $325,500.00. Following the transaction, the chief financial officer directly owned 313,327 shares in the company, valued at $20,397,587.70. The trade was a 1.57% decrease in their position. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 82,986 shares of company stock valued at $3,946,088. 2.37% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Costello Asset Management INC acquired a new stake in shares of Kratos Defense & Security Solutions in the first quarter worth $29,000. Aspect Partners LLC grew its holdings in Kratos Defense & Security Solutions by 1,900.0% during the 1st quarter. Aspect Partners LLC now owns 1,000 shares of the aerospace company's stock valued at $30,000 after purchasing an additional 950 shares in the last quarter. Smallwood Wealth Investment Management LLC acquired a new stake in Kratos Defense & Security Solutions during the 1st quarter valued at $30,000. Larson Financial Group LLC acquired a new stake in Kratos Defense & Security Solutions during the 1st quarter valued at $30,000. Finally, TD Waterhouse Canada Inc. acquired a new stake in Kratos Defense & Security Solutions during the 2nd quarter valued at $30,000. Institutional investors and hedge funds own 75.92% of the company's stock.

About Kratos Defense & Security Solutions

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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