Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Moved Up to “Strong-Buy” by Barclays

Kratos Defense & Security Solutions (NASDAQ:KTOS) was upgraded by equities researchers at Barclays to a “strong-buy” rating in a research note issued to investors on Friday, Zacks reports.

Several other brokerages have also recently commented on KTOS. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and reduced their target price for the company from $99.00 to $82.00 in a report on Friday, June 12th. The Goldman Sachs Group reduced their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research note on Tuesday, July 14th. Piper Sandler raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price target on the stock in a research report on Wednesday, August 5th. Guggenheim initiated coverage on Kratos Defense & Security Solutions in a research report on Monday, September 14th. They issued a “buy” rating and a $74.00 price objective for the company. Finally, Canaccord Genuity Group boosted their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Three equities research analysts have rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat, the stock currently has a consensus rating of “Buy” and a consensus price target of $94.79.

Kratos Defense & Security Solutions Stock Performance

NASDAQ KTOS opened at $42.36 on Friday. The company has a market capitalization of $7.95 billion, a price-to-earnings ratio of 249.18 and a beta of 1.11. Kratos Defense & Security Solutions has a twelve month low of $40.92 and a twelve month high of $134.00. The stock has a fifty day simple moving average of $50.72 and a 200 day simple moving average of $55.90. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

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, topping the consensus estimate of $0.14 by $0.07. The firm 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 business’s quarterly revenue was up 30.5% compared to the same quarter last year. During the same period in the previous year, the business earned $0.11 EPS. Sell-side analysts expect that Kratos Defense & Security Solutions will post 0.57 EPS for the current year.

Insiders Place Their Bets

In related news, insider Phillip Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction on Tuesday, September 15th. The shares were sold at an average price of $47.83, for a total value of $310,895.00. Following the completion of the sale, the insider owned 175,653 shares of the company’s stock, valued at approximately $8,401,482.99. This trade represents a 3.57% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $56.16, for a total transaction of $393,120.00. Following the transaction, the insider owned 288,111 shares of the company’s stock, valued at $16,180,313.76. This represents a 2.37% 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. In the last three months, insiders sold 375,513 shares of company stock valued at $23,597,752. 1.50% of the stock is currently owned by corporate insiders.

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently modified their holdings of KTOS. Bank of New York Mellon Corp boosted its position in shares of Kratos Defense & Security Solutions by 12.2% during the first quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock valued at $106,893,000 after buying an additional 164,607 shares during the last quarter. Principal Financial Group Inc. raised its position in Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock valued at $74,520,000 after buying an additional 342,789 shares during the last quarter. Bamco Inc. NY bought a new position in Kratos Defense & Security Solutions during the 2nd quarter valued at $53,746,000. American Capital Management Inc. bought a new position in Kratos Defense & Security Solutions during the 2nd quarter valued at $51,338,000. Finally, Sei Investments Co. boosted its holdings in Kratos Defense & Security Solutions by 33.1% during the 1st quarter. Sei Investments Co. now owns 570,631 shares of the aerospace company’s stock worth $40,234,000 after acquiring an additional 142,000 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Kratos Defense & Security Solutions

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.