Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 2.3% – Still a Buy?

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shot up 2.3% during trading on Friday . The company traded as high as $92.24 and last traded at $89.06. 1,759,980 shares traded hands during mid-day trading, a decline of 56% from the average session volume of 3,999,184 shares. The stock had previously closed at $87.05.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Seeking Alpha initiated coverage with a bullish thesis highlighting Kratos’ role in U.S. defense industrial rebuilding and growth areas like unmanned systems and attrition‑driven defense spending — a narrative that can support higher valuation and investor interest. Kratos Defense: A $134 Story In The Age Of Attrition
• Positive Sentiment: Kratos expanded a commercial application — a partnership with Champion Tire & Wheel to extend automated truck platooning for the NASCAR 2026 season — showing revenue diversification and commercial validation of its autonomy technologies. Kratos and Champion Tire & Wheel Expand Automated Truck Platooning for NASCAR 2026 Season
• Positive Sentiment: Recent Wall Street support and institutional flows appear constructive: multiple buy/overweight analyst ratings and elevated price targets (median ~$125) plus reported institutional adds (e.g., BlackRock increasing shares) bolster investor confidence. Earnings release / Quiver summary (includes analyst & institutional notes)
• Neutral Sentiment: Kratos scheduled its Q4 and FY2025 earnings release and conference call for Feb. 23 (post‑market) — a near‑term catalyst that can drive volatility either way depending on results and guidance. Earnings Conference Call Announcement
• Neutral Sentiment: Analysis pieces are debating market support for KTOS (mixed takeaways); these narratives can amplify moves but don’t change fundamentals immediately. Is Kratos Defense & Security Solutions Inc Gaining or Losing Market Support?
• Neutral Sentiment: Recent short‑interest reports in feeds show anomalous/zero and NaN values — data appears inconsistent and likely unreliable; unclear near‑term impact until corrected reporting.
• Negative Sentiment: Significant insider selling activity has been reported (many executives selling shares, no purchases shown), which can create perception of selling pressure or governance concerns for some investors. Quiver report with insider trading details

Wall Street Analysts Forecast Growth

KTOS has been the subject of several research analyst reports. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Monday, January 12th. Weiss Ratings reissued a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research note on Thursday, January 22nd. Jones Trading started coverage on shares of Kratos Defense & Security Solutions in a report on Monday, January 5th. They issued a “buy” rating for the company. KeyCorp lifted their price objective on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the company an “overweight” rating in a research report on Wednesday, January 28th. Finally, Stifel Nicolaus increased their target price on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat.com, Kratos Defense & Security Solutions has a consensus rating of “Moderate Buy” and a consensus price target of $95.28.

Kratos Defense & Security Solutions Price Performance

The firm has a market cap of $15.04 billion, a P/E ratio of 685.13 and a beta of 1.09. The company has a debt-to-equity ratio of 0.04, a current ratio of 4.30 and a quick ratio of 3.68. The firm’s 50 day moving average is $94.49 and its 200 day moving average is $82.91.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CEO Eric M. Demarco sold 200,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, December 1st. The stock was sold at an average price of $74.09, for a total transaction of $14,818,000.00. Following the completion of the transaction, the chief executive officer owned 1,196,237 shares in the company, valued at approximately $88,629,199.33. The trade was a 14.32% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Stacey G. Rock sold 16,568 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $116.74, for a total value of $1,934,148.32. Following the completion of the sale, the insider directly owned 26,487 shares in the company, valued at approximately $3,092,092.38. This represents a 38.48% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 921,815 shares of company stock worth $75,465,021 over the last quarter. 2.37% of the stock is currently owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently bought and sold shares of the company. Franklin Resources Inc. grew its holdings in shares of Kratos Defense & Security Solutions by 29.6% during the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock valued at $236,268,000 after buying an additional 1,162,577 shares during the last quarter. ARK Investment Management LLC lifted its position in Kratos Defense & Security Solutions by 22.2% in the 2nd quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company’s stock valued at $209,382,000 after acquiring an additional 818,104 shares in the last quarter. Geode Capital Management LLC boosted its stake in Kratos Defense & Security Solutions by 3.5% during the 4th quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock valued at $337,565,000 after purchasing an additional 148,622 shares during the last quarter. Morgan Stanley boosted its stake 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 valued at $251,345,000 after purchasing an additional 124,607 shares during the last quarter. Finally, First Trust Advisors LP increased its holdings in shares of Kratos Defense & Security Solutions by 29.5% in 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. 75.92% of the stock is currently owned by institutional investors.

About Kratos Defense & Security Solutions

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.