Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 3.4% - Here's Why

Key Points

• Kratos Defense & Security Solutions shares fell 3.4% on Thursday, trading as low as $46.01 after closing at $47.95 the prior day, on volume above its average session level.
• Despite the pullback, analysts remain generally constructive: the stock carries an average Moderate Buy rating and a consensus price target of $101.35, though several firms have recently trimmed their targets.
• Kratos recently beat quarterly expectations, reporting $0.16 EPS versus the $0.13 estimate and revenue of $371 million, up 22.6% year over year; however, recent insider selling and the stock’s decline below its 50-day and 200-day moving averages reflect ongoing pressure.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price fell 3.4% during mid-day trading on Thursday . The stock traded as low as $46.01 and last traded at $46.32. Approximately 5,271,716 shares changed hands during trading, an increase of 21% from the average session volume of 4,356,269 shares. The stock had previously closed at $47.95.

Wall Street Analysts Forecast Growth

KTOS has been the topic of several recent analyst reports. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and reduced their price target for the stock from $99.00 to $82.00 in a report on Friday, June 12th. Royal Bank Of Canada decreased their target price on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research report on Thursday, May 7th. Piper Sandler reduced their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock 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 report on Friday, May 1st. Finally, BNP Paribas Exane raised their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a research report 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 MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $101.35.

Kratos Defense & Security Solutions Stock Down 3.4%

The firm has a market cap of $8.69 billion, a P/E ratio of 272.47 and a beta of 1.04. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $59.57 and a 200-day moving average price of $78.98.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating 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 firm had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. During the same period in the previous year, the company posted $0.12 earnings per share. The firm's quarterly revenue was up 22.6% on a year-over-year basis. On average, equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.47 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In other news, insider Steven S. Fendley sold 35,000 shares of the company's stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $58.23, for a total value of $2,038,050.00. Following the completion of the sale, the insider owned 309,087 shares of the company's stock, valued at approximately $17,998,136.01. This represents a 10.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Also, CFO Deanna H. Lund sold 5,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, June 1st. The shares were sold at an average price of $63.74, for a total transaction of $318,700.00. Following the transaction, the chief financial officer directly owned 290,161 shares in the company, valued at approximately $18,494,862.14. The trade was a 1.69% 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. In the last three months, insiders have sold 187,278 shares of company stock worth $11,731,048. Insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently made changes to their positions in the stock. Mcguire Capital Advisors Inc. bought a new stake in Kratos Defense & Security Solutions during the fourth quarter valued at about $25,000. Atlantic Union Bankshares Corp raised its holdings in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after purchasing an additional 380 shares in the last quarter. Vision Retirement LLC lifted its position in shares of Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after buying an additional 317 shares during the last quarter. Rakuten Securities Inc. purchased a new stake in shares of Kratos Defense & Security Solutions during the second quarter valued at about $31,000. Finally, Caitlin John LLC bought a new stake in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at about $32,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

About Kratos Defense & Security Solutions

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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