Barclays Begins Coverage on Kratos Defense & Security Solutions (NASDAQ:KTOS)

Investment analysts at Barclays started coverage on shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) in a report issued on Friday, Marketbeat reports. The brokerage set an “overweight” rating and a $90.00 price target on the aerospace company’s stock. Barclays‘s target price indicates a potential upside of 112.46% from the company’s previous close.

A number of other research analysts also recently commented on KTOS. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. Piper Sandler upgraded Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a research report on Wednesday, August 5th. Truist Financial decreased their price target on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a research note on Thursday, August 13th. Canaccord Genuity Group lifted their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Cantor Fitzgerald reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 4th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of “Buy” and a consensus target price of $94.79.

Kratos Defense & Security Solutions Trading Up 1.0%

Shares of KTOS opened at $42.36 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. Kratos Defense & Security Solutions has a 12 month low of $40.92 and a 12 month high of $134.00. The stock has a market cap of $7.95 billion, a PE ratio of 249.18 and a beta of 1.11. The stock’s 50-day moving average is $50.72 and its two-hundred day moving average is $55.90.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its 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 business had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The company’s revenue was up 30.5% on a year-over-year basis. During the same period last year, the business posted $0.11 EPS. Equities analysts forecast that Kratos Defense & Security Solutions will post 0.57 earnings per share for the current fiscal year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 7,000 shares of the business’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the sale, the insider directly owned 288,111 shares of the company’s stock, valued at approximately $16,180,313.76. The trade was a 2.37% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 7,000 shares of the company’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $48.78, for a total value of $341,460.00. Following the transaction, the chief financial officer directly owned 273,511 shares of the company’s stock, valued at $13,341,866.58. This represents a 2.50% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 375,513 shares of company stock valued at $23,597,752 over the last quarter. 1.50% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently added to or reduced their stakes in KTOS. Oak Grove Capital LLC boosted its stake in shares of Kratos Defense & Security Solutions by 9.4% during the 3rd quarter. Oak Grove Capital LLC now owns 22,100 shares of the aerospace company’s stock worth $943,000 after acquiring an additional 1,900 shares during the period. Capital Advisors Wealth Management LLC bought a new position in shares of Kratos Defense & Security Solutions in the third quarter worth $448,000. GK Wealth Management LLC bought a new stake in shares of Kratos Defense & Security Solutions during the 3rd quarter worth approximately $37,000. Balefire LLC boosted its position in shares of Kratos Defense & Security Solutions by 11.0% during the 3rd quarter. Balefire LLC now owns 6,554 shares of the aerospace company’s stock worth $280,000 after acquiring an additional 647 shares in the last quarter. Finally, GAMMA Investing LLC boosted its position in shares of Kratos Defense & Security Solutions by 62.1% during the 3rd quarter. GAMMA Investing LLC now owns 4,990 shares of the aerospace company’s stock worth $213,000 after acquiring an additional 1,912 shares in the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos demonstrated end-to-end connectivity across a native, multi-vendor 5G NR non-terrestrial network using its OpenSpace fully virtualized satellite ground platform. The milestone supports the company’s positioning in satellite communications and could improve its prospects as operators seek scalable, interoperable 5G services. Kratos Advances 5G NR NTN Ground System Development with Multi-Vendor Connectivity Success
• Positive Sentiment: ARK Invest reportedly added Kratos shares while reducing positions in SpaceX and AMD, reflecting continued institutional interest in defense technology, drones and autonomous warfare. This may reinforce the bullish narrative around KTOS, although the purchases do not directly change the company’s fundamentals. Cathie Wood’s ARK Invest Adds Kratos Defense, AeroVironment Stocks
• Positive Sentiment: Space-cyber expansion combining RF sensing, signal processing, software and cybersecurity could open additional growth opportunities as defense agencies develop emerging space and communications missions. Can Kratos’ Space-Cyber Expansion Unlock New Growth Opportunities?
• Neutral Sentiment: KTOS was described as edging higher while other defense stocks weakened, indicating relative strength but providing no new contract or earnings catalyst. Defense Stocks Market Update
• Neutral Sentiment: Unusually high options volume signals increased trading interest and potentially greater near-term volatility, but it does not establish whether investors are positioned for gains or declines. Kratos Sees Unusually High Options Volume
• Negative Sentiment: Analysts are questioning whether Kratos’s share price is ahead of the cash flow the business can generate. With a reported price-to-earnings ratio near 250 and shares well below their 52-week high, valuation and execution risk remain important headwinds. Is Kratos Getting Too Stretched on Cash Flow?

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.