Key Points
- Insider sale: Phillip Carrai sold 26,500 Kratos shares for approximately $1.68 million, reducing his stake by 12.7% to 182,084 shares. The transaction was conducted under a pre-arranged Rule 10b5-1 plan.
- Strong quarterly performance: Kratos reported quarterly revenue of $458.8 million, up 30.5% year over year and above estimates, while earnings per share of $0.21 exceeded the consensus estimate of $0.14.
- Analyst outlook remains positive but valuation is elevated: The stock carries a consensus “Moderate Buy” rating with a $99.47 target price, although shares trade at a very high price-to-earnings ratio of 356.24 and analysts cite the need for margin improvement.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) SVP Marie Mendoza sold 1,513 shares of the stock in a transaction on Monday, August 17th. The shares were sold at an average price of $64.37, for a total value of $97,391.81. Following the transaction, the senior vice president directly owned 61,976 shares of the company's stock, valued at approximately $3,989,395.12. This trade represents a 2.38% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Marie Mendoza also recently made the following trade(s):
- On Monday, June 15th, Marie Mendoza sold 1,500 shares of Kratos Defense & Security Solutions stock. The shares were sold at an average price of $57.93, for a total transaction of $86,895.00.
Kratos Defense & Security Solutions Stock Performance
Shares of KTOS stock opened at $60.56 on Thursday. The firm's 50 day moving average is $52.82 and its 200 day moving average is $67.18. The stock has a market capitalization of $11.37 billion, a P/E ratio of 356.24 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a 12 month low of $43.09 and a 12 month high of $134.00. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The business had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same quarter last year, the company earned $0.11 EPS. The firm's revenue was up 30.5% compared to the same quarter last year. On average, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.
Institutional Inflows and Outflows
A number of hedge funds have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions in the fourth quarter worth $25,000. Atlantic Union Bankshares Corp increased its position in 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 purchasing an additional 380 shares during the period. Murphy & Mullick Capital Management Corp raised its holdings in Kratos Defense & Security Solutions by 115.4% in the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock worth $32,000 after purchasing an additional 225 shares in the last quarter. Vision Retirement LLC raised its holdings in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after purchasing an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new stake in shares of Kratos Defense & Security Solutions in the 4th quarter worth about $37,000. Hedge funds and other institutional investors own 75.92% of the company's stock.
Key Stories Impacting Kratos Defense & Security Solutions
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos received multi-million-dollar orders through its newly acquired Orbit business for GAIA 100 5.5-meter and 6.1-meter tri-band satellite ground-station systems. The orders signal demand for Orbit’s S-, X- and Ka-band communications and tracking technology. Kratos Receives Multi-Million-Dollar Orders for GAIA 100 Tri-Band Ground Station Systems Through Newly Acquired Orbit
- Positive Sentiment: A U.S. Marine Corps Valkyrie Collaborative Combat Aircraft demonstrated electronic-warfare capabilities and beyond-line-of-sight command and control in flight testing. The milestone supports Kratos’ unmanned and autonomous-defense growth prospects, although no contract award was announced. USMC Valkyrie Demonstrates Beyond-Line-Of-Sight Command and Control in Flight at U.S. Navy Test Range
- Positive Sentiment: Recent coverage emphasized strong second-quarter results: revenue increased 30.5% year over year to $458.8 million and earnings exceeded consensus expectations. Organic growth was led by Kratos Government Solutions and key businesses including defense rocket support, turbine technology and microwave products. Kratos: A Production Powerhouse That No Longer Feels Speculative
- Neutral Sentiment: Analysts point to Kratos’ $2.08 billion backlog, capacity expansion and exposure to unmanned systems and hypersonics as long-term positives. However, the investment case depends on margin improvement, while the stock’s very high valuation already reflects substantial future growth. Kratos: A Cautious Buy At The Inflection Point
- Negative Sentiment: Insider Phillip Carrai sold 26,500 shares worth approximately $1.68 million, reducing his position by 12.7%. SVP Marie Mendoza also sold 1,513 shares for about $97,000. Both trades were conducted under pre-arranged Rule 10b5-1 plans, limiting their significance as discretionary bearish signals, but the transactions nevertheless pressured sentiment. Kratos Defense & Security Solutions Insider Selling
Analysts Set New Price Targets
A number of research analysts recently commented on the company. Piper Sandler raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 target price on the stock in a research note on Wednesday, August 5th. Citizens Jmp dropped their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a research note on Friday, May 8th. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. Jefferies Financial Group set a $105.00 price objective on Kratos Defense & Security Solutions in a research report on Wednesday, August 5th. Finally, BNP Paribas Exane raised their price objective on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a report on Thursday, May 7th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average price target of $99.47.
Get Our Latest Stock Analysis on Kratos Defense & Security Solutions
Kratos Defense & Security Solutions Company Profile
(
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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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