Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 8.7% – What’s Next?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price shot up 8.7% on Thursday . The stock traded as high as $105.91 and last traded at $105.67. 5,139,670 shares traded hands during trading, an increase of 29% from the average session volume of 3,975,226 shares. The stock had previously closed at $97.21.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: Prometheus Energetics (a JV that includes Kratos) broke ground on a new solid rocket motor campus in Indiana—this expands Kratos’ propulsion/energetics capability and supports longer‑term revenue potential. Prometheus Energetics Breaks Ground
• Positive Sentiment: Kratos announced expanded roles in hypersonics, satellites and autonomy programs—operational wins in high‑priority defense segments that support multi‑year growth expectations. Kratos Expands Role In Hypersonics
• Positive Sentiment: Kratos won a contract to streamline hypersonic materials development—a technical contract that reinforces its addressable market in hypersonics. Hypersonic Materials Contract
• Neutral Sentiment: Reported short‑interest figures are effectively zero/ambiguous (likely a reporting/data quirk) and are unlikely to be a material driver of today’s move.
• Negative Sentiment: UBS initiated coverage with a “neutral” rating and a $79 price target—this published target sits well below recent trading levels and can directly weaken sentiment and trigger selling pressure. UBS Initiates Coverage
• Negative Sentiment: Two insiders disclosed sales (SVP Marie Mendoza sold 1,500 shares at ~$88.08; Phillip D. Carrai sold 6,500 shares at ~$90.91). While both still hold large positions, the filings read as near‑term profit taking and likely added to downward pressure. Insider Sale Filings Insider Sale Filings 2

Wall Street Analyst Weigh In

KTOS has been the subject of several recent research reports. BTIG Research increased their target price on shares of Kratos Defense & Security Solutions from $80.00 to $95.00 and gave the company a “buy” rating in a research note on Thursday, November 6th. UBS Group began coverage on Kratos Defense & Security Solutions in a research note on Wednesday. They set a “neutral” rating and a $79.00 price objective for the company. BNP Paribas Exane set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Tuesday, November 18th. KeyCorp raised their target price on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a report on Wednesday, January 28th. Finally, Truist Financial set a $135.00 price target on shares of Kratos Defense & Security Solutions in a report on Friday, January 9th. One analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $93.83.

Kratos Defense & Security Solutions Trading Down 9.1%

The business’s 50-day simple moving average is $96.38 and its 200-day simple moving average is $84.05. The company has a market cap of $16.37 billion, a PE ratio of 739.13 and a beta of 1.09. The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04.

Insider Activity

In other Kratos Defense & Security Solutions news, insider Phillip D. Carrai sold 6,500 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $90.91, for a total value of $590,915.00. Following the transaction, the insider directly owned 213,325 shares of the company’s stock, valued at $19,393,375.75. This represents a 2.96% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, SVP Marie Mendoza sold 1,500 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $88.08, for a total value of $132,120.00. Following the completion of the transaction, the senior vice president owned 62,121 shares in the company, valued at $5,471,617.68. This represents a 2.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 922,407 shares of company stock valued at $75,653,893. 2.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Greenleaf Trust lifted its stake in shares of Kratos Defense & Security Solutions by 2.7% in the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company’s stock worth $291,000 after buying an additional 100 shares during the last quarter. LVW Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 3.0% in the fourth quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company’s stock worth $278,000 after purchasing an additional 107 shares during the period. CENTRAL TRUST Co lifted its position in shares of Kratos Defense & Security Solutions by 7.3% during the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company’s stock worth $129,000 after purchasing an additional 115 shares during the last quarter. Quadrant Capital Group LLC increased its position in Kratos Defense & Security Solutions by 2.1% in the 4th quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock worth $449,000 after buying an additional 122 shares during the period. Finally, Parkside Financial Bank & Trust boosted its position in shares of Kratos Defense & Security Solutions by 6.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock valued at $148,000 after acquiring an additional 125 shares during the period. 75.92% of the stock is currently owned by institutional investors and hedge funds.

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.