Kratos Defense & Security Solutions (NASDAQ:KTOS) Sets New 12-Month Low - Time to Sell?

Key Points

• Kratos shares hit a new 52-week low of $42.99 and were recently trading near $43, below their 50-day and 200-day moving averages.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus, with an average price target of $98.71; recent targets range from $74 to $135.
• The company beat quarterly earnings and revenue expectations, with revenue up 30.5% year over year, although insiders sold approximately $24.1 million of stock over the past 90 days.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares hit a new 52-week low during trading on Tuesday. The stock traded as low as $42.99 and last traded at $43.0440, with a volume of 3378044 shares trading hands. The stock had previously closed at $44.07.

Analysts Set New Price Targets

A number of analysts have commented on KTOS shares. Truist Financial decreased their price target on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating for the company in a research note on Thursday, August 13th. Canaccord Genuity Group increased their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Guggenheim started coverage on Kratos Defense & Security Solutions in a report on Monday, September 14th. They set a "buy" rating and a $74.00 price target on the stock. Piper Sandler raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price target on the stock in a report on Wednesday, August 5th. Finally, Cantor Fitzgerald reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating for the company in a research report on Tuesday, August 4th. Two analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and an average target price of $98.71.

Kratos Defense & Security Solutions Stock Down 2.3%

The firm has a market capitalization of $8.08 billion, a P/E ratio of 253.24 and a beta of 1.11. 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 stock has a 50 day moving average of $51.60 and a 200-day moving average of $58.67.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company's revenue was up 30.5% on a year-over-year basis. During the same quarter last year, the company earned $0.11 earnings per share. Research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In related news, SVP Marie Mendoza sold 1,000 shares of the stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $48.50, for a total transaction of $48,500.00. Following the sale, the senior vice president owned 61,200 shares of the company's stock, valued at approximately $2,968,200. This represents a 1.61% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the firm's stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $56.16, for a total transaction of $393,120.00. Following the completion of the transaction, the insider owned 288,111 shares of the company's stock, valued at $16,180,313.76. This trade represents a 2.37% 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. Insiders sold a total of 384,513 shares of company stock worth $24,063,802 in the last 90 days. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Large investors have recently modified their holdings of the company. Envestnet Portfolio Solutions Inc. lifted its position in Kratos Defense & Security Solutions by 45.9% in the 2nd quarter. Envestnet Portfolio Solutions Inc. now owns 12,605 shares of the aerospace company's stock worth $628,000 after buying an additional 3,965 shares during the last quarter. Sequoia Financial Advisors LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 29.8% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 140,856 shares of the aerospace company's stock worth $7,023,000 after acquiring an additional 32,315 shares during the last quarter. Engineers Gate Manager LP boosted its stake in shares of Kratos Defense & Security Solutions by 53.2% in the 2nd quarter. Engineers Gate Manager LP now owns 6,885 shares of the aerospace company's stock valued at $343,000 after purchasing an additional 2,391 shares in the last quarter. Integrated Wealth Concepts LLC purchased a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at $119,000. Finally, IFP Advisors Inc grew its holdings in shares of Kratos Defense & Security Solutions by 103.6% during the 2nd quarter. IFP Advisors Inc now owns 7,422 shares of the aerospace company's stock valued at $370,000 after purchasing an additional 3,777 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.

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