Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 3.3% - Should You Sell?

Key Points

• Kratos shares fell 3.3% to $46.98 in mid-day trading, with volume down 89% from the stock’s average daily level.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $98.06, despite one recent downgrade to “Sell.”
• The company exceeded quarterly expectations, reporting $0.21 in adjusted EPS versus $0.14 expected and 30.5% year-over-year revenue growth; however, insiders have sold about $24.3 million of stock over the past 90 days.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s share price was down 3.3% during mid-day trading on Tuesday . The company traded as low as $47.43 and last traded at $46.98. 488,787 shares were traded during trading, a decline of 89% from the average daily volume of 4,305,692 shares. The stock had previously closed at $48.59.

Analyst Ratings Changes

Several analysts have weighed in on KTOS shares. Jefferies Financial Group set a $105.00 price target on Kratos Defense & Security Solutions in a research note on Wednesday, August 5th. BTIG Research raised their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the stock a "buy" rating in a research note on Wednesday, August 5th. Weiss Ratings lowered Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. Canaccord Genuity Group increased their price target on shares of Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a "buy" rating in a report on Wednesday, August 5th. Finally, JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and reduced their price target for the stock from $99.00 to $82.00 in a research report on Friday, June 12th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $98.06.

Kratos Defense & Security Solutions Trading Down 3.5%

The firm has a market cap of $8.80 billion, a price-to-earnings ratio of 275.92 and a beta of 1.11. The company has a fifty day moving average price of $51.78 and a 200-day moving average price of $60.17. 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 posted its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analyst estimates 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% compared to the same quarter last year. During the same period last year, the company earned $0.11 earnings per share. As a group, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, SVP Marie Mendoza sold 1,000 shares of the stock in a transaction 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 of the company's stock, valued at approximately $2,968,200. This represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 10,000 shares of Kratos Defense & Security Solutions stock in a transaction 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 directly owned 65,123 shares of the company's stock, valued at $4,135,310.50. The trade was a 13.31% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 389,188 shares of company stock worth $24,294,682. 1.50% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Institutional investors have recently modified their holdings of the business. Harbor Investment Advisory LLC purchased a new position in Kratos Defense & Security Solutions during the second quarter worth approximately $25,000. Vision Retirement LLC increased its position in shares of Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after buying an additional 317 shares in the last quarter. Murphy & Mullick Capital Management Corp increased its position in shares of Kratos Defense & Security Solutions by 115.4% in the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock valued at $32,000 after buying an additional 225 shares in the last quarter. Compass Financial Management LLC acquired a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth approximately $34,000. Finally, Versant Capital Management Inc raised its stake in shares of Kratos Defense & Security Solutions by 61.9% during 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 period. 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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