Kratos Defense & Security Solutions Target of Unusually Large Options Trading (NASDAQ:KTOS)

Key Points

• Kratos Defense & Security Solutions saw unusually heavy options activity, with traders buying 13,132 call options on Thursday, about 33% above its typical daily volume.
• The stock rose 15.1% to $65.93 after the company reported quarterly results that beat expectations, including EPS of $0.16 versus $0.13 expected and revenue of $371 million versus $345 million expected.
• Analysts remain generally positive on KTOS despite mixed target changes, with a consensus rating of Moderate Buy and an average price target of $96.28.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) was the target of unusually large options trading activity on Thursday. Stock traders purchased 13,132 call options on the stock. This is an increase of 33% compared to the typical daily volume of 9,868 call options.

Kratos Defense & Security Solutions Stock Up 15.1%

Shares of NASDAQ KTOS traded up $8.63 during trading on Thursday, reaching $65.93. 5,639,711 shares of the stock were exchanged, compared to its average volume of 4,269,854. 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 business's 50-day moving average price is $67.09 and its 200 day moving average price is $81.26. The company has a market capitalization of $12.36 billion, a price-to-earnings ratio of 388.03 and a beta of 1.06. Kratos Defense & Security Solutions has a twelve month low of $35.88 and a twelve month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The business had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business's revenue was up 22.6% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.12 earnings per share. As a group, equities analysts forecast that Kratos Defense & Security Solutions will post 0.5 EPS for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, Director Bradley L. Boyd sold 3,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, May 15th. The shares were sold at an average price of $52.08, for a total transaction of $156,240.00. Following the transaction, the director directly owned 16,480 shares of the company's stock, valued at $858,278.40. The trade was a 15.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider David M. Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $58.00, for a total transaction of $232,000.00. Following the transaction, the insider directly owned 74,071 shares in the company, valued at approximately $4,296,118. This trade represents a 5.12% 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 sold 154,540 shares of company stock valued at $11,689,165. 1.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. Greenleaf Trust increased its stake in shares of Kratos Defense & Security Solutions by 2.7% in the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock worth $291,000 after buying an additional 100 shares during the last quarter. LVW Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 3.0% in the fourth quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company's stock worth $278,000 after buying an additional 107 shares during the last quarter. CENTRAL TRUST Co increased its stake in shares of 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 worth $129,000 after buying an additional 115 shares during the last quarter. Quadrant Capital Group LLC increased its stake in shares of Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock worth $449,000 after buying an additional 122 shares during the last quarter. Finally, Parkside Financial Bank & Trust increased its stake in shares of Kratos Defense & Security Solutions by 6.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock worth $148,000 after buying an additional 125 shares during the last quarter. Institutional investors own 75.92% of the company's stock.

Analyst Ratings Changes

A number of brokerages have weighed in on KTOS. Jefferies Financial Group set a $80.00 price target on shares of Kratos Defense & Security Solutions in a research report on Sunday, May 10th. BTIG Research reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating on the stock in a research report on Thursday, May 7th. KeyCorp lifted their price target on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the company an "overweight" rating in a research report on Wednesday, January 28th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Finally, 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 report on Thursday, May 7th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $96.28.

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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