Kratos Defense & Security Solutions (NASDAQ:KTOS) Upgraded at Barclays

Kratos Defense & Security Solutions (NASDAQ:KTOS) was upgraded by analysts at Barclays to a “strong-buy” rating in a research note issued to investors on Friday, Zacks reports.

Other equities analysts have also issued reports about the company. BTIG Research increased their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. BNP Paribas Exane raised Kratos Defense & Security Solutions from a “neutral” rating to an “outperform” rating in a research report on Thursday. Canaccord Genuity Group increased their price target on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Truist Financial decreased their price objective on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Finally, Jefferies Financial Group lowered their price objective on Kratos Defense & Security Solutions from $80.00 to $68.00 and set a “buy” rating on the stock in a research note on Wednesday, September 30th. Three investment analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Buy” and a consensus target price of $94.79.

Kratos Defense & Security Solutions Stock Up 1.0%

KTOS stock opened at $42.36 on Friday. The stock has a market cap of $7.95 billion, a P/E ratio of 249.18 and a beta of 1.11. 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 stock’s fifty day simple moving average is $50.72 and its two-hundred day simple moving average is $55.90. Kratos Defense & Security Solutions has a 1-year low of $40.92 and a 1-year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same period in the prior year, the firm earned $0.11 EPS. The company’s revenue was up 30.5% compared to the same quarter last year. Analysts expect that Kratos Defense & Security Solutions will post 0.57 EPS for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In other news, insider Steven Fendley sold 7,000 shares of the company’s stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $56.16, for a total transaction of $393,120.00. Following the sale, the insider directly owned 288,111 shares in the company, valued at $16,180,313.76. This represents a 2.37% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Eric Demarco sold 300,000 shares of the business’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the transaction, the chief executive officer directly owned 761,632 shares of the company’s stock, valued at approximately $48,995,786.56. This represents a 28.26% 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 375,513 shares of company stock valued at $23,597,752. 1.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Large investors have recently added to or reduced their stakes in the business. Bank of New York Mellon Corp bought a new position in shares of Kratos Defense & Security Solutions during the second quarter valued at about $65,293,000. Bamco Inc. NY bought a new position in Kratos Defense & Security Solutions during the 2nd quarter worth approximately $53,746,000. American Capital Management Inc. purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $51,338,000. Paradigm Capital Management Inc. NY bought a new stake in Kratos Defense & Security Solutions in the second quarter valued at approximately $34,842,000. Finally, Principal Financial Group Inc. boosted its stake in shares of Kratos Defense & Security Solutions by 48.0% during the first quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock valued at $74,520,000 after purchasing an additional 342,789 shares during the period. Institutional investors own 75.92% of the company’s stock.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos demonstrated end-to-end connectivity across a native, multi-vendor 5G NR non-terrestrial network using its OpenSpace fully virtualized satellite ground platform. The milestone supports the company’s positioning in satellite communications and could improve its prospects as operators seek scalable, interoperable 5G services. Kratos Advances 5G NR NTN Ground System Development with Multi-Vendor Connectivity Success
• Positive Sentiment: ARK Invest reportedly added Kratos shares while reducing positions in SpaceX and AMD, reflecting continued institutional interest in defense technology, drones and autonomous warfare. This may reinforce the bullish narrative around KTOS, although the purchases do not directly change the company’s fundamentals. Cathie Wood’s ARK Invest Adds Kratos Defense, AeroVironment Stocks
• Positive Sentiment: Space-cyber expansion combining RF sensing, signal processing, software and cybersecurity could open additional growth opportunities as defense agencies develop emerging space and communications missions. Can Kratos’ Space-Cyber Expansion Unlock New Growth Opportunities?
• Neutral Sentiment: KTOS was described as edging higher while other defense stocks weakened, indicating relative strength but providing no new contract or earnings catalyst. Defense Stocks Market Update
• Neutral Sentiment: Unusually high options volume signals increased trading interest and potentially greater near-term volatility, but it does not establish whether investors are positioned for gains or declines. Kratos Sees Unusually High Options Volume
• Negative Sentiment: Analysts are questioning whether Kratos’s share price is ahead of the cash flow the business can generate. With a reported price-to-earnings ratio near 250 and shares well below their 52-week high, valuation and execution risk remain important headwinds. Is Kratos Getting Too Stretched on Cash Flow?

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.