Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 6.4% After Analyst Upgrade

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) rose 6.4% during trading on Wednesday after Wedbush upgraded the stock to a strong-buy rating. The stock traded as high as $54.13 and last traded at $53.04. 8,212,818 shares changed hands during mid-day trading, an increase of 78% from the average daily volume of 4,601,558 shares. The stock had previously closed at $49.86.

Several other equities research analysts have also recently weighed in on the stock. Citizens Jmp reduced their price target on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research report on Friday, May 8th. Piper Sandler lowered their price objective on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating for the company in a research report on Thursday, May 7th. Weiss Ratings reissued a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, April 21st. Clear Str upgraded shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and decreased their target price for the company from $99.00 to $82.00 in a research report on Friday, June 12th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have issued a Hold rating to the company’s stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of “Buy” and a consensus target price of $100.44.

Insider Activity

In related news, insider Jonah Adelman sold 31,348 shares of the stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.06, for a total transaction of $1,788,716.88. Following the sale, the insider owned 8,000 shares in the company, valued at approximately $456,480. This represents a 79.67% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, CFO Deanna H. Lund sold 5,000 shares of Kratos Defense & Security Solutions stock in a transaction on Friday, May 1st. The stock was sold at an average price of $62.10, for a total transaction of $310,500.00. Following the transaction, the chief financial officer directly owned 295,200 shares of the company’s stock, valued at $18,331,920. The trade was a 1.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 161,453 shares of company stock worth $9,561,063. Company insiders own 1.50% of the company’s stock.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos announced an approximately $36 million sole-source contract for a new air defense missile system, adding to backlog and reinforcing near-term revenue visibility. Article Title
• Positive Sentiment: Wedbush initiated coverage with an Outperform rating and an $85 price target, calling KTOS a “misunderstood” supplier to the broader U.S. defense complex. Article Title
• Positive Sentiment: Kratos also gained attention after becoming the exclusive U.S. manufacturer for Elroy Air and announcing an initial joint venture framework with Barq Group in Abu Dhabi, both of which broaden its unmanned systems growth opportunity. Article Title
• Positive Sentiment: Investor enthusiasm around the proposed Golden Dome missile defense initiative is keeping KTOS on watch as a potential beneficiary of future U.S. defense spending. Article Title
• Neutral Sentiment: Insiders Steven Fendley, Deanna H. Lund, and Stacey G. Rock sold shares, but each transaction was made under pre-arranged Rule 10b5-1 plans, so the sales are not a clear signal of weakening fundamentals. Article Title

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of large investors have recently made changes to their positions in KTOS. Mcguire Capital Advisors Inc. bought a new stake in Kratos Defense & Security Solutions in the fourth quarter worth about $25,000. Atlantic Union Bankshares Corp grew its stake in shares of Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock valued at $29,000 after buying an additional 380 shares during the last quarter. Murphy & Mullick Capital Management Corp grew its stake in shares of Kratos Defense & Security Solutions by 115.4% during the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock valued at $32,000 after buying an additional 225 shares during the last quarter. Vision Retirement LLC raised its holdings in shares of Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after buying an additional 317 shares during the period. Finally, CI Investments Inc. raised its holdings in shares of Kratos Defense & Security Solutions by 142.7% in the third quarter. CI Investments Inc. now owns 432 shares of the aerospace company’s stock worth $39,000 after buying an additional 254 shares during the period. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Price Performance

The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The stock has a market capitalization of $10.38 billion, a P/E ratio of 325.59 and a beta of 1.07. The stock has a 50 day moving average of $56.90 and a 200-day moving average of $77.83.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company had revenue of $371.00 million for the quarter, compared to the consensus estimate of $345.00 million. During the same quarter in the prior year, the company posted $0.12 EPS. Kratos Defense & Security Solutions’s quarterly revenue was up 22.6% on a year-over-year basis. On average, equities research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share for the current fiscal year.

About Kratos Defense & Security Solutions

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.