Short Interest in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Declines By 14.1%

Key Points

• Short interest in Kratos fell by 14.1% in April to 9,438,164 shares (about 5.1% of shares short), with a days-to-cover ratio of 2.7 based on average daily volume.
• Analyst sentiment is positive — Kratos has a consensus rating of Moderate Buy with a $98.28 average target after multiple upgrades and target raises (e.g., Canaccord to $125, Jefferies to Buy).
• Insiders have been net sellers (173,027 shares worth ~$14.0M sold over the last 90 days, including Rule 10b5-1 trades in mid‑April), while the stock recently traded at $61.69, has a market cap of $11.56B and a high reported P/E of 475.7.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) was the target of a significant decrease in short interest during the month of April. As of April 15th, there was short interest totaling 9,438,164 shares, a decrease of 14.1% from the March 31st total of 10,991,657 shares. Currently, 5.1% of the shares of the stock are short sold. Based on an average daily volume of 3,434,012 shares, the days-to-cover ratio is currently 2.7 days.

Analyst Ratings Changes

Several research firms have recently commented on KTOS. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Wednesday. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, February 24th. Noble Financial restated an "outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, January 20th. Jefferies Financial Group upgraded shares of Kratos Defense & Security Solutions from a "hold" rating to a "buy" rating and set a $85.00 target price on the stock in a research report on Monday, April 6th. Finally, Canaccord Genuity Group raised their target price on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the stock a "buy" rating in a research report on Tuesday, February 24th. Two investment analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Kratos Defense & Security Solutions has a consensus rating of "Moderate Buy" and a consensus target price of $98.28.

Kratos Defense & Security Solutions Trading Down 2.2%

NASDAQ:KTOS traded down $1.36 during trading hours on Friday, reaching $61.69. 1,088,300 shares of the company were exchanged, compared to its average volume of 4,193,114. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.46. The firm has a market cap of $11.56 billion, a price-to-earnings ratio of 475.70 and a beta of 1.22. Kratos Defense & Security Solutions has a 52-week low of $32.85 and a 52-week high of $134.00. The stock has a 50 day simple moving average of $78.53 and a 200 day simple moving average of $85.16.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its quarterly earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.04. The company had revenue of $345.10 million for the quarter, compared to the consensus estimate of $327.51 million. Kratos Defense & Security Solutions had a net margin of 1.63% and a return on equity of 3.34%. Kratos Defense & Security Solutions's revenue was up 21.9% on a year-over-year basis. During the same quarter last year, the firm posted $0.13 earnings per share. As a group, analysts predict that Kratos Defense & Security Solutions will post 0.57 EPS for the current year.

Insiders Place Their Bets

In other news, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction that occurred on Wednesday, April 15th. The shares were sold at an average price of $74.72, for a total value of $485,680.00. Following the sale, the insider directly owned 227,898 shares in the company, valued at $17,028,538.56. This represents a 2.77% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 5,417 shares of the stock in a transaction that occurred on Thursday, April 16th. The shares were sold at an average price of $75.90, for a total transaction of $411,150.30. Following the completion of the sale, the director owned 75,123 shares in the company, valued at $5,701,835.70. This represents a 6.73% 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. Over the last ninety days, insiders sold 173,027 shares of company stock valued at $14,045,490. Corporate insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently made changes to their positions in the business. Mcguire Capital Advisors Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $25,000. Bayforest Capital Ltd purchased a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $32,000. Caitlin John LLC purchased a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $32,000. Atlantic Union Bankshares Corp raised its stake in shares of Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after acquiring an additional 380 shares during the period. Finally, Whittier Trust Co. purchased a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $38,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc NASDAQ: KTOS is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.

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