Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Up 6.2% - Here's What Happened

Key Points

• Kratos Defense & Security Solutions rose 6.2% on Tuesday, trading as high as $51.47 on volume above its daily average. The move came amid broader interest in drone/defense stocks.
• Recent earnings topped expectations, with Kratos reporting $0.16 EPS versus $0.13 expected and revenue of $371 million versus $345 million forecast. Revenue also grew 22.6% year over year.
• Analysts remain mostly constructive, with a consensus “Moderate Buy” rating and an average price target of $101.35, even though some firms trimmed targets or stayed neutral. Meanwhile, insiders have recently sold shares, including sizable transactions by Phillip D. Carrai and Steven S. Fendley.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) was up 6.2% on Tuesday . The company traded as high as $51.47 and last traded at $49.86. Approximately 5,611,314 shares traded hands during mid-day trading, an increase of 23% from the average daily volume of 4,571,764 shares. The stock had previously closed at $46.95.

Wall Street Analyst Weigh In

A number of equities research analysts have recently weighed in on KTOS shares. UBS Group reaffirmed a "neutral" rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. BTIG Research dropped their price objective on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating on the stock in a report on Thursday, May 7th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, April 21st. BNP Paribas Exane lifted their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Finally, Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Wednesday, April 29th. Three research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have given a Hold rating to the company's stock. According to data from MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and an average target price of $101.35.

Kratos Defense & Security Solutions Price Performance

The stock's 50-day moving average is $57.93 and its 200-day moving average is $78.34. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The firm has a market cap of $9.35 billion, a P/E ratio of 293.29 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The business had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm's revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period last year, the business earned $0.12 earnings per share. As a group, equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.47 EPS for the current fiscal year.

Insider Buying and Selling

In other news, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $74.72, for a total transaction of $485,680.00. Following the completion of the transaction, the insider directly owned 227,898 shares of the company's stock, valued at approximately $17,028,538.56. This trade represents a 2.77% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 35,000 shares of the stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $58.23, for a total transaction of $2,038,050.00. Following the completion of the transaction, the insider directly owned 309,087 shares of the company's stock, valued at $17,998,136.01. This trade represents a 10.17% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 180,278 shares of company stock worth $11,243,918. Insiders own 1.50% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the company. Greenleaf Trust increased its position in Kratos Defense & Security Solutions by 2.7% in the 4th quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock valued at $291,000 after acquiring an additional 100 shares in the last quarter. LVW Advisors LLC raised its holdings in Kratos Defense & Security Solutions by 3.0% during the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company's stock worth $278,000 after purchasing an additional 107 shares during the last quarter. CENTRAL TRUST Co lifted its holdings in Kratos Defense & Security Solutions by 7.3% in the fourth quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company's stock valued at $129,000 after buying an additional 115 shares during the period. Quadrant Capital Group LLC lifted its stake in shares of Kratos Defense & Security Solutions by 2.1% in the 4th quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock valued at $449,000 after purchasing an additional 122 shares during the period. Finally, Parkside Financial Bank & Trust grew its stake in shares of Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock worth $148,000 after purchasing an additional 125 shares during the period. Institutional investors own 75.92% of the company's stock.

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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