Key Points
- CFO Deanna Lund sold 5,000 Kratos shares for $242,750 under a pre-arranged Rule 10b5-1 trading plan, reducing her ownership by 1.75% to 280,487 shares.
- Kratos reported a strong quarter, with EPS of $0.21 versus the $0.14 consensus and revenue of $458.8 million, up 30.5% year over year and above estimates.
- Analyst sentiment remains broadly positive, with an average “Buy” rating and a $102.41 price target, though the stock’s high valuation and some reduced targets highlight execution and growth risks.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CFO Deanna Lund sold 5,000 shares of the company's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $48.55, for a total value of $242,750.00. Following the sale, the chief financial officer owned 280,487 shares of the company's stock, valued at $13,617,643.85. This represents a 1.75% 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 hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Kratos Defense & Security Solutions Stock Up 6.7%
Shares of NASDAQ:KTOS opened at $55.34 on Thursday. The stock has a 50-day simple moving average of $52.50 and a 200-day simple moving average of $71.15. The stock has a market capitalization of $10.38 billion, a P/E ratio of 325.53 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a 1 year low of $43.09 and a 1 year high of $134.00. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.37%. Kratos Defense & Security Solutions's revenue for the quarter was up 30.5% compared to the same quarter last year. During the same quarter last year, the firm posted $0.11 earnings per share. Equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.
Analyst Upgrades and Downgrades
Several analysts recently issued reports on KTOS shares. BTIG Research increased their price target on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a "buy" rating in a report on Wednesday. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and reduced their price objective for the stock from $99.00 to $82.00 in a research note on Friday, June 12th. Canaccord Genuity Group set a $135.00 target price on Kratos Defense & Security Solutions in a research report on Wednesday. Wedbush initiated coverage on Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They set an "outperform" rating and a $85.00 target price on the stock. Finally, UBS Group reissued a "neutral" rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have given a Hold rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Buy" and an average target price of $102.41.
Check Out Our Latest Stock Report on KTOS
Kratos Defense & Security Solutions News Summary
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Second-quarter results beat expectations. Kratos reported adjusted earnings of $0.21 per share, up from $0.11 a year earlier and above the roughly $0.13-$0.14 consensus. Revenue rose 30.5% year over year to $458.8 million, exceeding estimates near $410 million. Kratos Reports Second Quarter 2026 Financial Results
- Positive Sentiment: Growth was broad-based. Kratos Government Solutions revenue increased 36.4% to $379.7 million, while Unmanned Systems revenue rose 8.1% to $79.1 million. Management cited demand across hypersonics, space, jet engines, counter-drone systems and unmanned aircraft, along with strong bookings. Kratos Defense Q2 Earnings and Revenues Outpace Estimates
- Positive Sentiment: Management raised its outlook. Full-year 2026 revenue guidance was lifted to approximately $1.8 billion, above the roughly $1.7 billion analyst consensus, with projected organic revenue growth of 19%-23%. Kratos also outlined plans to produce 3,000 Spartan engines in 2027. Kratos 2026 Organic Growth Forecast
- Positive Sentiment: Analyst sentiment improved. Piper Sandler upgraded KTOS, citing a buying opportunity, while BTIG raised its price target to $104 and maintained a Buy rating. The upgrades reinforce the view that the earnings beat and raised outlook may have been overly discounted by the market. Kratos Defense Upgraded at Piper Sandler
- Neutral Sentiment: Near-term guidance was roughly in line. Third-quarter revenue guidance of $460 million-$480 million brackets the $462.8 million consensus estimate, suggesting continued growth but limited immediate upside from the next-quarter forecast. Kratos Defense Rallies on Results and Upgrade
- Neutral Sentiment: Call-option activity was elevated, with 13,877 contracts purchased versus average daily volume of 10,153, indicating increased bullish speculation but not a fundamental change in the business.
- Negative Sentiment: Cantor Fitzgerald lowered its price target from $115 to $100, although it retained an Overweight rating. Kratos also continues to trade at a demanding valuation, making the stock sensitive to any slowdown in growth or execution.
Hedge Funds Weigh In On Kratos Defense & Security Solutions
A number of institutional investors have recently made changes to their positions in the business. Mcguire Capital Advisors Inc. purchased a new position in shares of Kratos Defense & Security Solutions during the 4th quarter valued at approximately $25,000. Atlantic Union Bankshares Corp increased its stake in shares of 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 worth $29,000 after buying an additional 380 shares during the last quarter. Murphy & Mullick Capital Management Corp raised its holdings in Kratos Defense & Security Solutions by 115.4% in the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock valued at $32,000 after acquiring an additional 225 shares in the last quarter. Vision Retirement LLC raised its holdings in Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after acquiring an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new position in Kratos Defense & Security Solutions during the 4th quarter valued at $37,000. 75.92% of the stock is owned by institutional investors and hedge funds.
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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