Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 4.8% Higher - Here's Why

Key Points

• Shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) rose by 4.8% to $59.43 on Monday, although trading volume decreased significantly by 74% compared to the average session.
• Analysts have a consensus rating of "Moderate Buy" for KTOS, with a target price averaging $50.08 and eleven analysts issuing buy ratings.
• The company reported a revenue increase of 9.2% year-over-year in its latest earnings, with earnings per share coming in at $0.12, surpassing analyst expectations.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares traded up 4.8% on Monday . The company traded as high as $59.54 and last traded at $59.43. 851,516 shares traded hands during mid-day trading, a decline of 74% from the average session volume of 3,255,792 shares. The stock had previously closed at $56.71.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the stock. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Kratos Defense & Security Solutions in a research report on Friday, July 18th. Noble Financial reissued an "outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Monday, July 14th. Citigroup reissued a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, July 22nd. The Goldman Sachs Group raised shares of Kratos Defense & Security Solutions from a "neutral" rating to a "buy" rating and set a $52.00 target price for the company in a research report on Monday, June 30th. Finally, JMP Securities set a $70.00 target price on shares of Kratos Defense & Security Solutions and gave the company a "market outperform" rating in a research report on Tuesday, July 22nd. One research analyst has rated the stock with a sell rating, two have issued a hold rating and eleven have issued a buy rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus target price of $50.08.

Kratos Defense & Security Solutions Price Performance

The company has a quick ratio of 2.26, a current ratio of 2.84 and a debt-to-equity ratio of 0.17. The business's 50-day simple moving average is $46.47 and its 200-day simple moving average is $36.80. The stock has a market cap of $9.09 billion, a PE ratio of 455.26 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings data on Wednesday, May 7th. The aerospace company reported $0.12 earnings per share for the quarter, beating analysts' consensus estimates of $0.09 by $0.03. The company had revenue of $302.60 million for the quarter, compared to the consensus estimate of $292.25 million. Kratos Defense & Security Solutions had a net margin of 1.68% and a return on equity of 3.85%. The firm's revenue for the quarter was up 9.2% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $0.11 earnings per share. On average, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In other news, SVP Marie Mendoza sold 2,000 shares of the firm's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $50.97, for a total transaction of $101,940.00. Following the sale, the senior vice president directly owned 65,535 shares in the company, valued at $3,340,318.95. This trade represents a 2.96% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CFO Deanna H. Lund sold 6,567 shares of the firm's stock in a transaction on Monday, June 2nd. The shares were sold at an average price of $37.75, for a total transaction of $247,904.25. Following the sale, the chief financial officer owned 318,766 shares in the company, valued at $12,033,416.50. The trade was a 2.02% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders sold 145,572 shares of company stock worth $5,644,656. 2.37% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors have recently bought and sold shares of the stock. Costello Asset Management INC purchased a new position in shares of Kratos Defense & Security Solutions in the 1st quarter worth $29,000. Aspect Partners LLC grew its stake in shares of Kratos Defense & Security Solutions by 1,900.0% in the 1st quarter. Aspect Partners LLC now owns 1,000 shares of the aerospace company's stock worth $30,000 after buying an additional 950 shares in the last quarter. Smallwood Wealth Investment Management LLC purchased a new position in shares of Kratos Defense & Security Solutions during the 1st quarter worth about $30,000. Larson Financial Group LLC purchased a new position in shares of Kratos Defense & Security Solutions during the 1st quarter worth about $30,000. Finally, MassMutual Private Wealth & Trust FSB boosted its stake in shares of Kratos Defense & Security Solutions by 202.3% during the 1st quarter. MassMutual Private Wealth & Trust FSB now owns 1,046 shares of the aerospace company's stock worth $31,000 after purchasing an additional 700 shares during the period. 75.92% of the stock is owned by hedge funds and other institutional investors.

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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