Key Points
- Insider sale: Director David Carter sold 4,000 shares on March 5 at an average price of $85.36 (about $341,440), trimming his position by 4.65% to 81,964 shares, per an SEC filing.
- Quarterly beat: Kratos reported $0.18 EPS versus $0.14 expected and $345.1M revenue versus $327.5M expected, with revenue up 21.9% year‑over‑year.
- Mixed outlook — catalysts vs. risks: Recent strategic moves (Orbit acquisition, multi‑million contracts, OpenSpace deployment) and a consensus “Moderate Buy” (PT ~$98.28) contrast with a very high P/E (~669), recent insider selling and a follow‑on equity offering that raise dilution and volatility concerns.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider David Carter sold 4,000 shares of the business's stock in a transaction that occurred on Thursday, March 5th. The stock was sold at an average price of $85.36, for a total value of $341,440.00. Following the completion of the sale, the insider owned 81,964 shares of the company's stock, valued at $6,996,447.04. The trade was a 4.65% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link.
Kratos Defense & Security Solutions Stock Up 1.7%
Shares of NASDAQ KTOS opened at $87.00 on Friday. Kratos Defense & Security Solutions, Inc. has a one year low of $25.78 and a one year high of $134.00. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.46. The firm's 50 day simple moving average is $98.94 and its two-hundred day simple moving average is $85.73. The stock has a market capitalization of $16.25 billion, a P/E ratio of 669.28 and a beta of 1.12.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share for the quarter, topping analysts' consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a net margin of 1.63% and a return on equity of 3.34%. The firm had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. During the same period in the previous year, the business posted $0.13 EPS. The business's quarterly revenue was up 21.9% on a year-over-year basis. As a group, analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.
Key Kratos Defense & Security Solutions News
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos completed the cash acquisition of Israeli firm Orbit Technologies, adding capabilities and personnel that support its unmanned systems and satellite communications strategy. Kratos Defense Completes Cash Acquisition of Orbit Technologies
- Positive Sentiment: Kratos won a multi‑million dollar production contract for a Counter‑UAS system and confirmed its OpenSpace platform is deployed in SSC Space’s Space Go LEO service — tangible revenue/visibility drivers for its unmanned and space businesses. Kratos Defense Weighs New Contracts Equity Raise And OpenSpace Growth Potential
- Positive Sentiment: Analysts and media lists continue to highlight KTOS as a defense/drone play; several firms maintain buy/overweight views and some raised targets recently, supporting demand from retail and institutional momentum. MarketBeat KTOS Coverage
- Neutral Sentiment: The company completed a major follow‑on equity offering to fund expansion and M&A — this provides firepower for growth but introduces dilution risk investors must price in. Equity Offering and Growth Plans
- Negative Sentiment: Insider selling: CFO Deanna Lund and another insider disclosed sales totaling ~10k+ shares in early March, which some investors view as a near‑term negative signal. Deanna Lund Sells 5,000 Shares
- Negative Sentiment: Valuation and volatility risks: KTOS trades at a very high P/E and has shown wide price swings over the past year, raising the risk that momentum reverses if execution or macro tailwinds fade. KTOS Valuation and Metrics
Wall Street Analyst Weigh In
A number of research analysts have recently issued reports on the company. Truist Financial set a $135.00 price objective on Kratos Defense & Security Solutions in a research note on Friday, January 9th. BTIG Research raised their price target on Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the stock a "buy" rating in a research report on Tuesday, February 24th. Weiss Ratings reiterated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, January 22nd. Citigroup restated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Finally, UBS Group began coverage on shares of Kratos Defense & Security Solutions in a research note on Wednesday, February 18th. They issued a "neutral" rating and a $79.00 target price on the stock. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus price target of $98.28.
Get Our Latest Stock Analysis on Kratos Defense & Security Solutions
Institutional Inflows and Outflows
A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions in the 4th quarter worth approximately $25,000. Bayforest Capital Ltd bought a new position in shares of Kratos Defense & Security Solutions during the third quarter valued at approximately $32,000. Caitlin John LLC purchased a new stake in Kratos Defense & Security Solutions in the third quarter worth $32,000. Atlantic Union Bankshares Corp boosted its holdings in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after acquiring an additional 380 shares in the last quarter. Finally, Whittier Trust Co. bought a new stake in Kratos Defense & Security Solutions in the third quarter valued at $38,000. Institutional investors own 75.92% of the company's stock.
Kratos Defense & Security Solutions Company Profile
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Get Free Report)
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.
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