Kratos Defense & Security Solutions (NASDAQ:KTOS) Sets New 12-Month Low – Here’s What Happened

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price hit a new 52-week low on Wednesday. The company traded as low as $36.03 and last traded at $36.2920, with a volume of 2,641,200 shares changing hands. The stock had previously closed at $40.99.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: KeyBanc cut its price target, but the report still indicated about 83% potential upside. Kratos has also raised its revenue forecast twice, according to the article, supporting the longer-term growth case despite the stock’s steep decline this year. Article: Kratos Is Down 46% in 2026. KeyBanc Cut Its Target but Still Sees 83% Upside
• Positive Sentiment: An earnings preview highlights manufacturing expansion, rising hypersonics revenue and strong defense bookings as potential supports for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?
• Neutral Sentiment: Investor positioning is divided: ARK Invest increased its Kratos stake by 34% in Q2, while Jericho Capital sold all 2.65 million of its shares. The contrast underscores disagreement about the stock’s outlook. Article: Cathie Wood Bought Kratos. A $12 Billion Fund Sold All of It. Who’s Right?
• Neutral Sentiment: Investors are looking to the Nov. 5 quarterly earnings call for evidence that growth and bookings are translating into results. Article: Kratos Defense & Security Solutions Projected to Announce Quarterly Earnings on Thursday
• Negative Sentiment: KeyCorp issued a pessimistic forecast for KTOS, adding to concerns reflected in recent analyst caution. The earnings preview also flags currency pressures as a possible drag on margins. Article: KeyCorp Issues Pessimistic Forecast for Kratos Defense & Security Solutions Stock Price

Analysts Set New Price Targets

KTOS has been the subject of a number of analyst reports. BNP Paribas Exane raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “outperform” rating in a report on Thursday, October 8th. Cantor Fitzgerald dropped their price objective on shares of 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. Canaccord Genuity Group upped their price target 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. Royal Bank Of Canada dropped their target price on Kratos Defense & Security Solutions from $80.00 to $55.00 and set an “outperform” rating on the stock in a report on Wednesday, October 28th. Finally, Oppenheimer assumed coverage on shares of Kratos Defense & Security Solutions in a research note on Thursday, October 22nd. They issued an “outperform” rating and a $50.00 price target for the company. Three research analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $83.65.

Kratos Defense & Security Solutions Price Performance

The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The company has a 50 day moving average of $44.58 and a 200-day moving average of $63.96. The firm has a market capitalization of $6.79 billion, a P/E ratio of 213.78 and a beta of 1.18.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping 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 the consensus estimate of $410.36 million. During the same quarter in the prior year, the business posted $0.11 earnings per share. The firm’s quarterly revenue was up 30.5% compared to the same quarter last year. On average, sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.59 EPS for the current year.

Insider Activity

In other news, insider Phillip Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction dated Thursday, October 15th. The stock was sold at an average price of $39.86, for a total transaction of $259,090.00. Following the sale, the insider directly owned 169,196 shares of the company’s stock, valued at approximately $6,744,152.56. This trade represents a 3.70% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,000 shares of the firm’s stock in a transaction that occurred 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 completion of the transaction, the senior vice president owned 61,200 shares of the company’s stock, valued at approximately $2,968,200. This trade represents a 1.61% 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. Over the last ninety days, insiders sold 373,013 shares of company stock valued at $23,340,582. Corporate insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently made changes to their positions in KTOS. Versant Capital Management Inc lifted its position in shares of Kratos Defense & Security Solutions by 61.9% during the second quarter. Versant Capital Management Inc now owns 696 shares of the aerospace company’s stock worth $35,000 after acquiring an additional 266 shares in the last quarter. Vision Retirement LLC lifted its stake 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 worth $30,000 after purchasing an additional 317 shares during the last quarter. Ranch Capital Advisors Inc. boosted its stake in shares of Kratos Defense & Security Solutions by 5.1% during the first quarter. Ranch Capital Advisors Inc. now owns 6,553 shares of the aerospace company’s stock valued at $462,000 after purchasing an additional 318 shares during the period. Provenance Wealth Advisors LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 128.9% during the third quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock worth $32,000 after purchasing an additional 419 shares during the period. Finally, IMG Wealth Management Inc. grew its position in shares of Kratos Defense & Security Solutions by 427.0% in the 1st quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock worth $37,000 after buying an additional 427 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.