Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.3% – What’s Next?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price traded down 1.3% during trading on Monday . The stock traded as low as $57.37 and last traded at $57.73. 3,170,245 shares traded hands during mid-day trading, a decline of 28% from the average session volume of 4,384,135 shares. The stock had previously closed at $58.52.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos said it will significantly expand production capacity for its Spartan turbojet engines to meet rising demand from missile, loitering munition, and autonomous defense programs, a sign of potential future revenue growth. Article: Kratos Expands Production of Spartan Engines to Support Growing Missile and Loitering Munition Demand
• Positive Sentiment: A recent Zacks piece highlighted Kratos’ growth in hypersonics and autonomous systems, including higher Valkyrie drone production and improving Unmanned Systems profitability, which supports the long-term bull case. Article: Is KTOS Building a Growth Engine in Hypersonics & Autonomous Systems?
• Neutral Sentiment: Insider David M. Carter sold 4,000 shares in a pre-arranged 10b5-1 plan. The sale was modest and disclosed properly, but insider selling can still create some caution among traders. Article: Insider sale filing
• Negative Sentiment: Market commentary also questioned whether KTOS has run too far too fast, with investors debating whether the stock is already pricing in much of its multi-year growth story. That valuation concern may be contributing to the weakness. Article: Is Kratos Defense & Security Solutions (KTOS) Pricing In Too Much After Its Multiyear Run?

Wall Street Analysts Forecast Growth

Several equities analysts have commented on the stock. BNP Paribas Exane increased their price target on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Royal Bank Of Canada dropped their price target on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Citizens Jmp dropped their price target on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research note on Friday, May 8th. UBS Group reiterated a “neutral” rating and issued a $82.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Finally, BTIG Research dropped their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating on the stock in a research note on Thursday, May 7th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have issued a Hold rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $96.28.

Kratos Defense & Security Solutions Trading Down 2.4%

The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The company has a fifty day moving average of $63.00 and a two-hundred day moving average of $80.45. The stock has a market capitalization of $10.28 billion, a price-to-earnings ratio of 322.47 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating analysts’ consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. During the same quarter last year, the company earned $0.12 earnings per share. Kratos Defense & Security Solutions’s quarterly revenue was up 22.6% compared to the same quarter last year. On average, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current year.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, insider David M. Carter sold 4,000 shares of the firm’s stock in a transaction on Friday, June 5th. The stock was sold at an average price of $59.16, for a total value of $236,640.00. Following the completion of the sale, the insider owned 70,092 shares of the company’s stock, valued at approximately $4,146,642.72. This trade represents a 5.40% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the firm’s stock in a transaction on Tuesday, May 26th. The shares were sold at an average price of $57.24, for a total value of $400,680.00. Following the completion of the sale, the insider directly owned 344,090 shares of the company’s stock, valued at approximately $19,695,711.60. This trade represents a 1.99% 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. Insiders have sold 187,564 shares of company stock valued at $12,981,944 in the last quarter. Corporate insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Geode Capital Management LLC lifted its holdings in Kratos Defense & Security Solutions by 3.5% in the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock valued at $337,565,000 after acquiring an additional 148,622 shares during the period. Morgan Stanley increased its position in Kratos Defense & Security Solutions by 3.9% during the 4th quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock worth $251,345,000 after purchasing an additional 124,607 shares in the last quarter. First Trust Advisors LP increased its position in Kratos Defense & Security Solutions by 29.5% during the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock worth $280,402,000 after purchasing an additional 698,778 shares in the last quarter. Invesco Ltd. increased its position in Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock worth $278,331,000 after purchasing an additional 209,189 shares in the last quarter. Finally, Alliancebernstein L.P. increased its position in Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock worth $247,409,000 after purchasing an additional 2,525,921 shares in the last quarter. Institutional investors and hedge funds 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.