Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 1.9% - Time to Buy?

Key Points

• KTOS shares rose 1.9% to $47.02, although the stock remains below its 50-day and 200-day moving averages of $51.64 and $59.59.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $98.06; recent targets range from $75 to $105 despite several downward revisions.
• Kratos exceeded quarterly expectations, reporting $0.21 in EPS versus $0.14 expected and revenue of $458.8 million, up 30.5% year over year. However, insiders sold roughly $24.6 million of shares over the past 90 days, while the stock trades at a lofty 276.6 P/E ratio.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shares rose 1.9% during mid-day trading on Thursday. The stock traded as high as $47.36 and last traded at $47.02. 4,669,653 shares were traded during trading, an increase of 8% from the average daily volume of 4,333,792 shares. The stock had previously closed at $46.16.

Analysts Set New Price Targets

KTOS has been the topic of a number of analyst reports. The Goldman Sachs Group reduced their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating on the stock in a research note on Tuesday, July 14th. Jefferies Financial Group set a $105.00 price target on shares of Kratos Defense & Security Solutions in a report on Wednesday, August 5th. Cantor Fitzgerald reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating on the stock in a research report on Tuesday, August 4th. Truist Financial lowered their price objective on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating for the company in a research report on Thursday, August 13th. Finally, Piper Sandler upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price objective for the company in a research report on Wednesday, August 5th. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $98.06.

Kratos Defense & Security Solutions Trading Up 1.9%

The business's 50 day simple moving average is $51.64 and its two-hundred day simple moving average is $59.59. The stock has a market cap of $8.83 billion, a P/E ratio of 276.59 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 released its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.Kratos Defense & Security Solutions's revenue for the quarter was up 30.5% on a year-over-year basis. During the same quarter last year, the business posted $0.11 EPS. As a group, analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Insider Activity

In other news, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $56.16, for a total value 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 represents a 2.37% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot Jarvis sold 10,000 shares of the firm's stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total transaction of $635,000.00. Following the completion of the transaction, the director owned 65,123 shares of the company's stock, valued at approximately $4,135,310.50. This trade represents a 13.31% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders sold 396,188 shares of company stock valued at $24,636,142. 1.50% of the stock is currently owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently bought and sold shares of the stock. Moors & Cabot Inc. boosted its position in shares of Kratos Defense & Security Solutions by 4.3% in the fourth quarter. Moors & Cabot Inc. now owns 4,298 shares of the aerospace company's stock valued at $326,000 after acquiring an additional 178 shares during the period. IFP Advisors Inc grew its position in shares of Kratos Defense & Security Solutions by 5.6% during the 4th quarter. IFP Advisors Inc now owns 3,423 shares of the aerospace company's stock valued at $260,000 after purchasing an additional 180 shares in the last quarter. AdvisorNet Financial Inc grew its position in shares of Kratos Defense & Security Solutions by 15.8% during the 1st quarter. AdvisorNet Financial Inc now owns 1,392 shares of the aerospace company's stock valued at $98,000 after purchasing an additional 190 shares in the last quarter. Fifth Third Wealth Advisors LLC increased its holdings in shares of Kratos Defense & Security Solutions by 3.5% in the first quarter. Fifth Third Wealth Advisors LLC now owns 6,035 shares of the aerospace company's stock worth $426,000 after purchasing an additional 205 shares during the period. Finally, Murphy & Mullick Capital Management Corp raised its holdings in shares of Kratos Defense & Security Solutions by 115.4% in the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock valued at $32,000 after acquiring an additional 225 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

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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