Wedbush Upgrades Kratos Defense & Security Solutions (NASDAQ:KTOS) to Strong-Buy

Key Points

• Wedbush upgraded Kratos Defense & Security Solutions to Strong-Buy, adding to a broadly bullish analyst backdrop. The stock now has a consensus Buy rating and an average price target of $100.44.
• Kratos shares were up 6.4% in the session, even though the stock remains well below its 200-day average. It opened at $53.04 versus a 52-week high of $134.00.
• The company recently posted better-than-expected quarterly results, with EPS of $0.16 versus $0.13 expected and revenue of $371 million, up 22.6% year over year. However, insiders have continued to sell shares in recent months.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) was upgraded by research analysts at Wedbush to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other analysts have also recently commented on the company. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research report on Thursday, May 7th. Weiss Ratings reissued a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and reduced their price target for the company from $99.00 to $82.00 in a research report on Friday, June 12th. Finally, Piper Sandler decreased their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating for the company in a research note on Thursday, May 7th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and an average price target of $100.44.

Kratos Defense & Security Solutions Trading Up 6.4%

Shares of Kratos Defense & Security Solutions stock opened at $53.04 on Tuesday. The company has a fifty day simple moving average of $57.17 and a 200-day simple moving average of $77.97. Kratos Defense & Security Solutions has a 12-month low of $41.87 and a 12-month high of $134.00. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The stock has a market cap of $9.95 billion, a price-to-earnings ratio of 312.00 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, topping the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. During the same period last year, the business earned $0.12 EPS. Kratos Defense & Security Solutions's revenue for the quarter was up 22.6% compared to the same quarter last year. On average, equities analysts forecast that Kratos Defense & Security Solutions will post 0.47 EPS for the current fiscal year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction on Monday, June 1st. The stock was sold at an average price of $63.74, for a total value of $318,700.00. Following the completion of the transaction, the chief financial officer owned 290,161 shares in the company, valued at approximately $18,494,862.14. This represents a 1.69% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,500 shares of the firm's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $57.93, for a total value of $86,895.00. Following the completion of the sale, the senior vice president directly owned 64,447 shares of the company's stock, valued at approximately $3,733,414.71. This trade represents a 2.27% decrease in their position. 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 151,778 shares of company stock worth $9,063,063. Corporate insiders own 1.50% of the company's stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. Mcguire Capital Advisors Inc. acquired a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter valued at about $25,000. Atlantic Union Bankshares Corp grew its position in Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after buying an additional 380 shares during the period. Vision Retirement LLC increased its holdings in 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. Rakuten Securities Inc. purchased a new position in Kratos Defense & Security Solutions in the second quarter valued at about $31,000. Finally, Murphy & Mullick Capital Management Corp lifted its position in shares of Kratos Defense & Security Solutions by 115.4% during 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 during the period. 75.92% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Kratos Defense & Security Solutions

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Wedbush initiated coverage with an Outperform rating and an $85 price target, with the analyst calling Kratos a “misunderstood” supplier to the broader U.S. defense ecosystem. Article Title
• Positive Sentiment: Kratos won an agreement to become the exclusive U.S. manufacturer for Elroy Air, and also disclosed an initial joint venture agreement with Barq Group in Abu Dhabi, boosting its uncrewed systems and international growth outlook. Article Title
• Positive Sentiment: Investor enthusiasm around the proposed Golden Dome missile defense initiative is highlighting Kratos as a potential long-term supplier, supporting the case for future defense spending tied to its scalable technologies. Article Title
• Positive Sentiment: Defense stocks, including KTOS, also got a lift after AeroVironment’s strong quarterly results signaled healthy demand across the sector. Article Title
• Neutral Sentiment: Additional commentary from market outlets and analyst roundups continued to spotlight Kratos as one of the notable defense names attracting investor attention, but these items were mainly reiterative rather than new catalysts. Article Title

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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