Key Points
- Director Scot Jarvis sold 10,000 Kratos shares at an average price of $63.50, totaling $635,000 and reducing his holdings by 13.31% to 65,123 shares.
- Kratos reported strong quarterly results, with revenue rising 30.5% year over year to $458.8 million and EPS of $0.21, beating the $0.14 analyst consensus.
- Analysts maintain a generally positive outlook, with the stock carrying a “Moderate Buy” consensus rating and a $99.47 average price target, although insider selling and the company’s high valuation remain concerns.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) Director Scot Jarvis sold 10,000 shares of the firm's stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total value of $635,000.00. Following the sale, the director owned 65,123 shares of the company's stock, valued at $4,135,310.50. This represents a 13.31% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink.
Kratos Defense & Security Solutions Stock Down 7.2%
Shares of NASDAQ KTOS opened at $56.18 on Friday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 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 stock's 50-day simple moving average is $52.77 and its 200-day simple moving average is $66.85. The firm has a market cap of $10.55 billion, a price-to-earnings ratio of 330.47 and a beta of 1.08.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating analysts' consensus estimates 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 firm had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. During the same quarter in the prior year, the business posted $0.11 earnings per share. Kratos Defense & Security Solutions's revenue for the quarter was up 30.5% on a year-over-year basis. As a group, equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current fiscal year.
Analysts Set New Price Targets
A number of analysts have recently weighed in on KTOS shares. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. The Goldman Sachs Group cut their price target on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a "buy" rating on the stock in a report on Tuesday, July 14th. Piper Sandler upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price objective on the stock in a research note on Wednesday, August 5th. Citizens Jmp decreased their price objective on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a report on Friday, May 8th. Finally, BNP Paribas Exane boosted their target price on shares of 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. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $99.47.
Get Our Latest Analysis on Kratos Defense & Security Solutions
Institutional Inflows and Outflows
Several hedge funds have recently made changes to their positions in the company. Corient Private Wealth LLC grew its position in shares of Kratos Defense & Security Solutions by 7,701.6% during the 4th quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock valued at $120,966,000 after buying an additional 1,573,123 shares during the last quarter. Norges Bank bought a new position in Kratos Defense & Security Solutions in the fourth quarter worth about $104,807,000. Bank of New York Mellon Corp bought a new position in Kratos Defense & Security Solutions in the second quarter worth about $65,293,000. Bamco Inc. NY acquired a new position in Kratos Defense & Security Solutions in the second quarter valued at approximately $53,746,000. Finally, American Capital Management Inc. acquired a new position in Kratos Defense & Security Solutions in the second quarter valued at approximately $51,338,000. Institutional investors and hedge funds own 75.92% of the company's stock.
Kratos Defense & Security Solutions News Summary
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos received multi-million-dollar orders through its Orbit subsidiary for GAIA 100 tri-band satellite ground-station systems. The orders support demand for the company’s space communications and tracking technologies. Kratos Receives Multi-Million-Dollar Orders for GAIA 100 Tri-Band Ground Station Systems
- Positive Sentiment: Recent second-quarter results remained strong, with revenue up 30.5% year over year to $458.8 million and EPS of $0.21, above the $0.14 consensus estimate. Growth was broad-based across government solutions, defense rocket support, turbine technology and microwave products. Kratos: A Production Powerhouse That No Longer Feels Speculative
- Neutral Sentiment: Kratos’ backlog, capacity expansion and exposure to unmanned systems, hypersonics and satellite communications support its long-term growth outlook. However, investors are demanding continued execution and margin improvement, while the stock’s elevated earnings multiple leaves limited room for disappointment.
- Neutral Sentiment: China reportedly asked the United States to remove new tariffs on drones and related components. The development highlights ongoing trade-policy uncertainty for defense and drone companies, although its direct effect on Kratos is unclear. China Reportedly Presses U.S. to Scrap Drone Tariffs
- Negative Sentiment: Insiders have reported numerous sales and no open-market purchases over the past six months. Recent transactions included Phillip Carrai’s sale of 26,500 shares and SVP Marie Mendoza’s sale of 1,513 shares. Both were made under pre-arranged Rule 10b5-1 plans, reducing their value as discretionary bearish signals, but the selling can still weigh on sentiment. Kratos Insider Selling
- Negative Sentiment: Institutional positioning was mixed in the latest quarter, with more funds reducing positions than adding shares. Large reductions by BlackRock, Franklin Resources and other managers may reinforce short-term selling pressure.
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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