Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Gets Price Target Trim from Royal Bank Of Canada

Kratos Defense & Security Solutions (NASDAQ:KTOS) had its price target cut by Royal Bank Of Canada from $80.00 to $55.00 in a report issued on Wednesday,Benzinga reports. They currently have an outperform rating on the aerospace company’s stock.

Other equities research analysts also recently issued reports about the stock. Guggenheim assumed coverage on shares of Kratos Defense & Security Solutions in a report on Monday, September 14th. They issued a “buy” rating and a $74.00 price target for the company. Rothschild & Co Redburn assumed coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, October 6th. They issued a “buy” rating and a $70.00 price objective on the stock. The Goldman Sachs Group cut their target price on shares of Kratos Defense & Security Solutions from $88.00 to $77.00 and set a “buy” rating for the company in a research note on Monday, October 12th. Citizens Jmp decreased their price target on shares of Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating on the stock in a research report on Monday, October 19th. Finally, Weiss Ratings cut Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a report on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus target price of $86.40.

Kratos Defense & Security Solutions Price Performance

Shares of KTOS opened at $41.09 on Wednesday. Kratos Defense & Security Solutions has a one year low of $36.37 and a one year high of $134.00. The stock’s fifty day moving average is $45.16 and its 200-day moving average is $64.76. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The firm has a market capitalization of $7.71 billion, a price-to-earnings ratio of 90.81 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The business 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 company posted $0.11 earnings per share. The company’s quarterly revenue was up 30.5% compared to the same quarter last year. Equities analysts anticipate that Kratos Defense & Security Solutions will post 0.59 EPS for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, Director Scot Jarvis sold 10,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total value of $635,000.00. Following the completion of the sale, the director directly owned 65,123 shares of the company’s stock, valued at $4,135,310.50. The trade was a 13.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction on Thursday, October 15th. The stock was sold at an average price of $39.86, for a total transaction of $259,090.00. Following the transaction, the insider directly owned 169,196 shares in the company, valued at $6,744,152.56. The trade was a 3.70% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 382,013 shares of company stock worth $23,806,932 over the last quarter. Insiders own 1.50% of the company’s stock.

Institutional Trading of Kratos Defense & Security Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the business. Southern Financial Group LLC lifted its stake in shares of Kratos Defense & Security Solutions by 8.4% in the third quarter. Southern Financial Group LLC now owns 6,235 shares of the aerospace company’s stock valued at $266,000 after buying an additional 485 shares in the last quarter. Provenance Wealth Advisors LLC lifted its stake in shares of Kratos Defense & Security Solutions by 128.9% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock valued at $32,000 after buying an additional 419 shares in the last quarter. Gerber Kawasaki Wealth & Investment Management boosted its position in shares of Kratos Defense & Security Solutions by 2.7% in the third quarter. Gerber Kawasaki Wealth & Investment Management now owns 69,093 shares of the aerospace company’s stock valued at $2,950,000 after acquiring an additional 1,847 shares during the period. Harold Davidson & Associates Inc. purchased a new position in shares of Kratos Defense & Security Solutions during the third quarter worth about $369,000. Finally, Traynor Capital Management Inc. increased its stake in Kratos Defense & Security Solutions by 48.9% in the third quarter. Traynor Capital Management Inc. now owns 8,954 shares of the aerospace company’s stock valued at $382,000 after acquiring an additional 2,939 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions News Roundup

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Kratos received a $33.6 million NASA-related contract from Sierra Lobo to design and build the power-conversion system for the Space Reactor-1 Freedom spacecraft, strengthening its space and national-security portfolio ahead of its next earnings report. NASA contract announcement
• Positive Sentiment: Recent analysis points to robust organic growth, strong bookings and production ramp-ups in unmanned systems, propulsion and defense electronics. Kratos’ latest reported revenue rose 30.5% year over year to $458.8 million, while its 1.3x trailing book-to-bill ratio supports future revenue visibility. Seeking Alpha growth analysis
• Positive Sentiment: Analysts continue to highlight potential upside from rising global military spending. B. Riley retained a Buy rating, and the consensus remains “Moderate Buy.” Kratos also has a strong balance sheet, including very low leverage, although its profitability remains modest.
• Neutral Sentiment: Investors are comparing Kratos with larger contractor Lockheed Martin. KTOS offers faster growth exposure but trades at a substantially richer valuation and has less established earnings and cash-flow scale, making the stock more sensitive to execution and interest-rate concerns. Kratos versus Lockheed Martin analysis
• Negative Sentiment: B. Riley lowered its KTOS price target from $128 to $91, while Royal Bank of Canada issued a more pessimistic forecast and previously reduced its target to $55 from $80. Although Buy or Outperform ratings remain, the cuts signal increasing caution about valuation and near-term execution.
• Negative Sentiment: Kratos trades at an elevated earnings multiple despite a net margin of only 2.03% and ongoing investment needs, including negative free cash flow highlighted in recent analysis. This leaves the stock vulnerable to profit-taking after its prior rally.
• Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $280,000 under a pre-arranged Rule 10b5-1 plan. The scheduled nature limits the signal, but insider selling may still weigh modestly on sentiment.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.