Key Points
- Insider selling: Kratos Defense & Security Solutions insider David Carter sold 4,000 shares at $58.00 each, totaling $232,000. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- Strong quarterly results: The company reported Q1 EPS of $0.16, topping estimates of $0.13, and revenue of $371 million, above the $345 million consensus. Revenue also rose 22.6% year over year.
- Analyst sentiment remains mostly positive: Despite some lower price targets, Wall Street still shows a Moderate Buy consensus with an average target of $96.56. Several firms maintained buy or outperform ratings on the stock.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider David Carter sold 4,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Thursday, May 7th. The shares were sold at an average price of $58.00, for a total transaction of $232,000.00. Following the transaction, the insider directly owned 74,071 shares of the company's stock, valued at $4,296,118. This represents a 5.12% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Kratos Defense & Security Solutions Price Performance
Shares of Kratos Defense & Security Solutions stock opened at $57.89 on Friday. The stock has a market capitalization of $10.86 billion, a price-to-earnings ratio of 340.53 and a beta of 1.06. The firm's 50-day moving average price is $76.46 and its two-hundred day moving average price is $84.41. The company has a current ratio of 5.63, a quick ratio of 3.46 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 1-year low of $32.85 and a 1-year high of $134.00.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating analysts' consensus estimates of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same period last year, the company posted $0.12 earnings per share. The firm's quarterly revenue was up 22.6% compared to the same quarter last year. On average, equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.
Institutional Investors Weigh In On Kratos Defense & Security Solutions
A number of institutional investors and hedge funds have recently modified their holdings of the business. Mcguire Capital Advisors Inc. bought a new position in Kratos Defense & Security Solutions in the fourth quarter valued at approximately $25,000. Atlantic Union Bankshares Corp raised its position in shares of Kratos Defense & Security Solutions by 7,600.0% during the 4th 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 during the last quarter. Vision Retirement LLC raised its position in shares of Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after acquiring an additional 317 shares during the last quarter. Rakuten Securities Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at $31,000. Finally, Bayforest Capital Ltd acquired a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $32,000. 75.92% of the stock is owned by institutional investors.
Trending Headlines about Kratos Defense & Security Solutions
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos reported Q1 revenue of $371 million and adjusted EPS of $0.16, both ahead of expectations, while also lifting full-year fiscal 2026 guidance. The company highlighted 22.6% revenue growth, a record backlog of $2 billion, and a 1.6x book-to-bill ratio, all of which support the stock. Article: Kratos Reports First Quarter 2026 Financial Results and Increases Fiscal FY26 Financial Guidance
- Positive Sentiment: The company also announced Odon, Indiana as the home of its new hypersonic test facility, a long-duration investment that could expand Kratos’ role in U.S. defense infrastructure and hypersonic materials development. Article: Kratos Names Odon, Indiana as Home of New Hypersonic Test Facility
- Positive Sentiment: Analyst commentary remains constructive despite some lower targets: Citizens JMP kept an outperform-style view and still sees substantial upside, while BTIG maintained a buy rating after reducing its target.
- Neutral Sentiment: Piper Sandler and BNP Paribas Exane both lowered price targets, but neither changed the broader investment thesis materially, suggesting valuation concerns rather than a major change in business momentum.
- Negative Sentiment: Kratos’ CFO sold about $310,500 in stock, which may add some caution for investors watching insider activity. Article: Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CFO Sells $310,500.00 in Stock
- Negative Sentiment: Some coverage also noted that the company continues to burn cash, which helps explain why the stock may not have reacted even more strongly to the earnings beat.
Analysts Set New Price Targets
KTOS has been the subject of several research analyst reports. Piper Sandler dropped their price objective on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating for the company in a research report on Thursday. Weiss Ratings reiterated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, April 21st. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a "buy" rating in a research note on Thursday. Noble Financial restated an "outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, January 20th. Finally, The Goldman Sachs Group upped their price target on Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the company a "buy" rating in a research note on Tuesday, January 20th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have assigned a Hold rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $96.56.
View Our Latest Report on KTOS
Kratos Defense & Security Solutions Company Profile
(
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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