Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 2.4% - Should You Buy?

Key Points

• Kratos shares rose 2.4% to $48.59, while trading volume was about 20% below its average. The stock carries a high P/E ratio of 285.82 and trades below both its 50-day and 200-day moving averages.
• Analysts remain broadly bullish, with a consensus “Moderate Buy” rating and an average price target of $98.06. Recent quarterly results exceeded expectations, including EPS of $0.21 versus $0.14 expected and 30.5% year-over-year revenue growth to $458.8 million.
• Insiders sold approximately $24.3 million of stock during the last quarter, while institutional investors own 75.92% of the company. Kratos operates across defense and national-security markets, including drones, satellite communications, missile defense, hypersonics, radar and space systems.

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) shot up 2.4% during mid-day trading on Monday . The company traded as high as $49.39 and last traded at $48.59. 3,456,146 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 4,326,007 shares. The stock had previously closed at $47.46.

Wall Street Analyst Weigh In

Several equities analysts recently commented on the company. Canaccord Genuity Group boosted their target price on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a "buy" rating in a research report on Wednesday, August 5th. Cantor Fitzgerald lowered their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and dropped their price target for the company from $99.00 to $82.00 in a research report on Friday, June 12th. BTIG Research boosted their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Finally, The Goldman Sachs Group decreased 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 report on Tuesday, July 14th. Two analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $98.06.

Kratos Defense & Security Solutions Price Performance

The business's fifty day moving average price is $51.75 and its 200-day moving average price is $60.45. The company has a market capitalization of $9.12 billion, a P/E ratio of 285.82 and a beta of 1.11. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 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 business had revenue of $458.80 million for the quarter, compared to analysts' expectations of $410.36 million. During the same quarter in the prior year, the firm earned $0.11 earnings per share. The firm's revenue was up 30.5% on a year-over-year basis. As a group, sell-side 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, insider Steven S. Fendley sold 7,000 shares of the business's stock in a transaction that occurred on Monday, July 27th. The stock was sold at an average price of $47.13, for a total value of $329,910.00. Following the completion of the sale, the insider owned 295,120 shares in the company, valued at $13,909,005.60. The trade was a 2.32% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 26,500 shares of the business's stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $63.25, for a total value of $1,676,125.00. Following the completion of the sale, the insider owned 182,084 shares of the company's stock, valued at $11,516,813. The trade was a 12.70% decrease in their position. 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 389,188 shares of company stock worth $24,294,682 in the last quarter. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently made changes to their positions in the business. New Age Alpha Advisors LLC boosted its position in Kratos Defense & Security Solutions by 435.1% during the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company's stock valued at $3,265,000 after buying an additional 34,973 shares during the period. BNP Paribas Financial Markets increased its holdings in shares of Kratos Defense & Security Solutions by 245.2% in the fourth quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company's stock worth $45,673,000 after buying an additional 427,396 shares during the period. Paradigm Capital Management Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions in the second quarter worth about $34,842,000. Bamco Inc. NY bought a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at about $53,746,000. Finally, Principal Financial Group Inc. lifted its stake in shares of Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock valued at $74,520,000 after acquiring an additional 342,789 shares during the last quarter. Institutional investors own 75.92% of the company's stock.

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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