Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Up 3.3% - Here's What Happened

Key Points

• Kratos Defense & Security Solutions saw its stock increase by 3.3% on Tuesday, trading between $69.13 and $69.63, although the trading volume was significantly lower than average.
• Several analysts maintain positive ratings for Kratos, with a target price increase from Royal Bank of Canada to $65, indicating confidence in the company despite potential valuation risks.
• The company reported revenue of $351.50 million for the last quarter, significantly surpassing the consensus estimate and reflecting a 17.1% year-over-year growth.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares traded up 3.3% on Tuesday . The company traded as high as $69.63 and last traded at $69.13. 703,863 shares traded hands during trading, a decline of 79% from the average session volume of 3,333,478 shares. The stock had previously closed at $66.90.

Wall Street Analyst Weigh In

A number of research analysts recently weighed in on the stock. Cantor Fitzgerald restated an "overweight" rating on shares of Kratos Defense & Security Solutions in a research note on Friday, July 18th. Citigroup restated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 22nd. Royal Bank Of Canada lifted their target price on shares of Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the company an "outperform" rating in a research note on Friday, August 8th. Noble Financial restated an "outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Monday, August 11th. Finally, Raymond James Financial reiterated a "strong-buy" rating on shares of Kratos Defense & Security Solutions in a report on Friday, August 8th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and two have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, the stock currently has an average rating of "Moderate Buy" and an average target price of $57.64.

Kratos Defense & Security Solutions Stock Up 1.5%

The firm has a market capitalization of $11.46 billion, a PE ratio of 680.09 and a beta of 1.04. The business's 50 day simple moving average is $54.67 and its 200 day simple moving average is $40.28. 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 announced 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 return on equity of 3.10% and a net margin of 1.20%.The firm had revenue of $351.50 million for the quarter, compared to the consensus estimate of $305.67 million. During the same period in the previous year, the business earned $0.14 EPS. The firm's revenue for the quarter 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. On average, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In other news, CFO Deanna H. Lund sold 6,567 shares of the business's stock in a transaction that occurred 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 completion of the sale, the chief financial officer owned 318,766 shares in the company, valued at approximately $12,033,416.50. The trade was a 2.02% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Phillip D. Carrai sold 6,000 shares of the business's stock in a transaction that occurred on Tuesday, July 15th. The stock was sold at an average price of $51.42, for a total transaction of $308,520.00. Following the sale, the insider owned 270,104 shares of the company's stock, valued at $13,888,747.68. This represents a 2.17% decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders sold 75,986 shares of company stock worth $3,686,738. 2.37% of the stock is owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

Institutional investors have recently modified their holdings of the stock. CWM LLC increased its stake in Kratos Defense & Security Solutions by 3.8% in the second quarter. CWM LLC now owns 4,722 shares of the aerospace company's stock valued at $219,000 after purchasing an additional 171 shares during the period. Red Mountain Financial LLC lifted its holdings in Kratos Defense & Security Solutions by 1.9% in the second quarter. Red Mountain Financial LLC now owns 10,500 shares of the aerospace company's stock valued at $488,000 after acquiring an additional 200 shares during the period. NewEdge Advisors LLC lifted its holdings in Kratos Defense & Security Solutions by 15.2% in the second quarter. NewEdge Advisors LLC now owns 1,515 shares of the aerospace company's stock valued at $70,000 after acquiring an additional 200 shares during the period. MRP Capital Investments LLC increased its position in shares of Kratos Defense & Security Solutions by 11.1% in the second quarter. MRP Capital Investments LLC now owns 2,500 shares of the aerospace company's stock valued at $116,000 after buying an additional 250 shares in the last quarter. Finally, ORG Partners LLC increased its position in shares of Kratos Defense & Security Solutions by 12.3% in the second quarter. ORG Partners LLC now owns 2,432 shares of the aerospace company's stock valued at $105,000 after buying an additional 267 shares in the last quarter. Hedge funds and other institutional investors 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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