Kratos Defense & Security Solutions (NASDAQ:KTOS) Reaches New 1-Year Low - Here's What Happened

Key Points

• Kratos shares hit a new 52-week low, trading as low as $36.03 after closing at $40.99 in the prior session.
• Investors are watching the Nov. 5 earnings call for evidence that manufacturing expansion, hypersonics revenue and defense bookings are supporting growth; currency pressures could weigh on margins.
• Analyst and investor views are mixed: the consensus rating is “Moderate Buy” with an average price target of $83.65, while institutional investors have made sharply different moves, with ARK adding shares and Jericho Capital exiting its position.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price hit a new 52-week low on Wednesday. The company traded as low as $36.03 and last traded at $36.2920, with a volume of 2,641,200 shares trading hands. The stock had previously closed at $40.99.

More Kratos Defense & Security Solutions News

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: KeyBanc cut its price target, but the report still indicated about 83% potential upside. Kratos has also raised its revenue forecast twice, according to the article, supporting the longer-term growth case despite the stock’s steep decline this year. Article: Kratos Is Down 46% in 2026. KeyBanc Cut Its Target but Still Sees 83% Upside
• Positive Sentiment: An earnings preview highlights manufacturing expansion, rising hypersonics revenue and strong defense bookings as potential supports for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?
• Neutral Sentiment: Investor positioning is divided: ARK Invest increased its Kratos stake by 34% in Q2, while Jericho Capital sold all 2.65 million of its shares. The contrast underscores disagreement about the stock’s outlook. Article: Cathie Wood Bought Kratos. A $12 Billion Fund Sold All of It. Who’s Right?
• Neutral Sentiment: Investors are looking to the Nov. 5 quarterly earnings call for evidence that growth and bookings are translating into results. Article: Kratos Defense & Security Solutions Projected to Announce Quarterly Earnings on Thursday
• Negative Sentiment: KeyCorp issued a pessimistic forecast for KTOS, adding to concerns reflected in recent analyst caution. The earnings preview also flags currency pressures as a possible drag on margins. Article: KeyCorp Issues Pessimistic Forecast for Kratos Defense & Security Solutions Stock Price

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on KTOS shares. Barclays assumed coverage on shares of Kratos Defense & Security Solutions in a research note on Friday, October 9th. They issued an "overweight" rating and a $90.00 price target for the company. Royal Bank Of Canada reduced their price objective on shares of Kratos Defense & Security Solutions from $80.00 to $55.00 and set an "outperform" rating for the company in a research report on Wednesday, October 28th. BNP Paribas Exane raised Kratos Defense & Security Solutions from a "neutral" rating to an "outperform" rating in a research note on Thursday, October 8th. Weiss Ratings reissued a "sell (d+)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday. Finally, Citigroup restated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Monday, October 19th. Three research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has given a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average target price of $83.65.

Kratos Defense & Security Solutions Stock Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The company has a 50 day moving average price of $44.58 and a 200 day moving average price of $63.96. The company has a market capitalization of $6.79 billion, a PE ratio of 213.78 and a beta of 1.18.

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 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 business had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same period in the previous year, the business earned $0.11 EPS. The business's quarterly revenue was up 30.5% on a year-over-year basis. Equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.59 EPS for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the completion of the sale, the insider directly owned 288,111 shares of the company's stock, valued at approximately $16,180,313.76. This represents a 2.37% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, 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 Kratos Defense & Security Solutions stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $39.86, for a total value of $259,090.00. Following the completion of the transaction, the insider owned 169,196 shares in the company, valued at $6,744,152.56. The trade was 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. Insiders sold 373,013 shares of company stock valued at $23,340,582 in the last quarter. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently added to or reduced their stakes in KTOS. Harbor Investment Advisory LLC acquired a new stake in shares of Kratos Defense & Security Solutions in the second quarter worth $25,000. Vision Retirement LLC raised its position in Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after purchasing an additional 317 shares in the last quarter. Balance Wealth Partners LLC bought a new stake in Kratos Defense & Security Solutions in the third quarter valued at $30,000. Provenance Wealth Advisors LLC lifted its holdings in Kratos Defense & Security Solutions by 128.9% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company's stock valued at $32,000 after purchasing an additional 419 shares during the last quarter. Finally, Compass Financial Management LLC acquired a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth approximately $34,000. Institutional investors and hedge funds own 75.92% of the company's stock.

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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