Key Points
- Insider David Carter sold 4,000 KTOS shares for $223,600 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 6.04% to 62,237 shares.
- Kratos reported a strong second 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 expectations.
- Analyst sentiment remains broadly positive, with a “Moderate Buy” consensus and an average price target of $101.29, although Cantor Fitzgerald lowered its target to $100 and KTOS trades at a high earnings multiple.
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 on Wednesday, August 5th. The stock was sold at an average price of $55.90, for a total value of $223,600.00. Following the transaction, the insider owned 62,237 shares of the company's stock, valued at $3,479,048.30. This trade represents a 6.04% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Kratos Defense & Security Solutions Trading Up 5.9%
NASDAQ:KTOS opened at $60.77 on Friday. The stock has a market cap of $11.41 billion, a price-to-earnings ratio of 357.47 and a beta of 1.08. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.54. Kratos Defense & Security Solutions, Inc. has a 1 year low of $43.09 and a 1 year high of $134.00. The business has a fifty day moving average of $52.27 and a 200-day moving average of $70.57.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings data 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. The business had revenue of $458.80 million for the quarter, compared to analysts' expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company's revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.11 earnings per share. Equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.
Hedge Funds Weigh In On Kratos Defense & Security Solutions
Large investors have recently made changes to their positions in the business. Greenleaf Trust raised 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 valued at $291,000 after purchasing an additional 100 shares in the last quarter. CENTRAL TRUST Co lifted its holdings in 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 buying an additional 115 shares in the last quarter. Quadrant Capital Group LLC boosted its holdings in Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock valued at $449,000 after acquiring an additional 122 shares during the last quarter. Parkside Financial Bank & Trust increased its position in 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 worth $148,000 after purchasing an additional 125 shares during the period. Finally, Northwestern Mutual Investment Management Company LLC raised its holdings in Kratos Defense & Security Solutions by 0.4% during the 4th quarter. Northwestern Mutual Investment Management Company LLC now owns 37,776 shares of the aerospace company's stock worth $2,868,000 after purchasing an additional 153 shares during the last quarter. Institutional investors own 75.92% of the company's stock.
Analyst Upgrades and Downgrades
A number of analysts have recently weighed in on KTOS shares. Cantor Fitzgerald reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating for the company in a research note on Tuesday. Jefferies Financial Group set a $105.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Wednesday. Citizens Jmp dropped their target price on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating on the stock in a report on Friday, May 8th. BNP Paribas Exane upped their target price on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a research report on Thursday, May 7th. Finally, Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the company has an average rating of "Moderate Buy" and an average target price of $101.29.
View Our Latest Report on Kratos Defense & Security Solutions
Key Kratos Defense & Security Solutions News
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Results exceeded expectations. Kratos reported second-quarter EPS of $0.21, up from $0.11 a year earlier and above the $0.14 analyst consensus. Revenue increased 30.5% year over year to $458.8 million, surpassing estimates of approximately $410 million. Kratos Earnings Beat
- Positive Sentiment: Management highlighted stronger second-half growth. The company cited increased capacity, program funding and bookings across hypersonics, jet engines, unmanned systems and counter-drone technologies. Kratos also views engines for low-cost cruise missiles as a significant future growth opportunity. KTOS Q2 Earnings Call Highlights
- Positive Sentiment: A new U.S. Army development contract adds strategic support. Kratos will develop an Enhanced Seeker for the Javelin missile system, expanding its role in precision weapons and missile technology. Kratos Receives U.S. Army Contract
- Positive Sentiment: Analyst sentiment remains supportive. Piper Sandler upgraded KTOS, and BTIG raised its price target to $104 while maintaining a Buy rating, reinforcing investor confidence following the earnings report. Kratos Upgraded at Piper Sandler
- Neutral Sentiment: Valuation remains a risk. With a high earnings multiple and relatively modest profitability, KTOS could be vulnerable if program launches, capacity expansion or defense bookings fall short of expectations.
- Negative Sentiment: Cantor Fitzgerald reduced its price target to $100 from $115, although it retained an Overweight rating. Separately, CFO Deanna Lund sold 5,000 shares under a pre-arranged Rule 10b5-1 plan; the sale was a small reduction in her holdings but may provide a minor counterpoint to the bullish news. KTOS Insider Sale
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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