Kratos Defense & Security Solutions Sees Unusually High Options Volume (NASDAQ:KTOS)

Key Points

• Options activity surged: Traders purchased 43,950 KTOS call options, roughly 303% above the stock’s typical daily call volume.
• Insiders have been selling: Executives sold shares under pre-arranged Rule 10b5-1 plans, with insiders selling 382,013 shares worth approximately $23.9 million over the past quarter.
• Analyst sentiment remains moderately bullish despite stock weakness: KTOS opened at $38.74, near its 12-month low, while analysts maintain a consensus “Moderate Buy” rating and an average price target of $92.32.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) saw some unusual options trading activity on Thursday. Traders purchased 43,950 call options on the stock. This is an increase of approximately 303% compared to the typical daily volume of 10,902 call options.

Insider Buying and Selling

In related news, SVP Marie Mendoza sold 1,000 shares of the company's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $48.50, for a total transaction of $48,500.00. Following the sale, the senior vice president directly owned 61,200 shares in the company, valued at approximately $2,968,200. This represents a 1.61% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 6,500 shares of the firm's stock in a transaction that occurred on Thursday, October 15th. The stock was sold at an average price of $39.86, for a total transaction of $259,090.00. Following the completion of the transaction, the insider directly owned 169,196 shares of the company's stock, valued at approximately $6,744,152.56. This trade represents a 3.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 382,013 shares of company stock valued at $23,856,842. Corporate insiders own 1.50% of the company's stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Harbor Investment Advisory LLC bought a new stake in Kratos Defense & Security Solutions during the second quarter valued at approximately $25,000. Vision Retirement LLC grew its stake in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after buying an additional 317 shares in the last quarter. Compass Financial Management LLC bought a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth $34,000. Versant Capital Management Inc increased its holdings in shares of Kratos Defense & Security Solutions by 61.9% in the 2nd quarter. Versant Capital Management Inc now owns 696 shares of the aerospace company's stock worth $35,000 after buying an additional 266 shares during the last quarter. Finally, IMG Wealth Management Inc. increased its holdings in shares of Kratos Defense & Security Solutions by 427.0% in the 1st quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company's stock worth $37,000 after buying an additional 427 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on KTOS shares. Weiss Ratings downgraded Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. Jefferies Financial Group lowered Kratos Defense & Security Solutions from a "buy" rating to a "negative" rating in a report on Monday. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Monday. BTIG Research boosted their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, BNP Paribas Exane upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a research note on Thursday, October 8th. Two equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $92.32.

Kratos Defense & Security Solutions Stock Performance

NASDAQ:KTOS opened at $38.74 on Thursday. The business's 50-day moving average price is $47.81 and its two-hundred day moving average price is $53.89. Kratos Defense & Security Solutions has a twelve month low of $37.84 and a twelve month high of $134.00. The stock has a market cap of $7.27 billion, a P/E ratio of 227.88 and a beta of 1.11. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The firm had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same quarter last year, the company posted $0.11 EPS. The company's revenue for the quarter was up 30.5% on a year-over-year basis. As a group, equities analysts predict that Kratos Defense & Security Solutions will post 0.58 EPS for the current fiscal year.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.

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