Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 2.6% on Analyst Downgrade

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) fell 2.6% during trading on Tuesday after Barclays lowered their price target on the stock from $90.00 to $80.00. Barclays currently has an overweight rating on the stock. Kratos Defense & Security Solutions traded as low as $36.20 and last traded at $36.72. Approximately 3,870,926 shares changed hands during mid-day trading, a decline of 12% from the average daily volume of 4,408,240 shares. The stock had previously closed at $37.69.

A number of other brokerages have also recently issued reports on KTOS. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Monday, October 19th. Truist Financial reduced their price objective on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday, August 13th. Oppenheimer assumed coverage on shares of Kratos Defense & Security Solutions in a research report on Thursday, October 22nd. They set an “outperform” rating and a $50.00 target price on the stock. B. Riley Financial lowered their target price on shares of Kratos Defense & Security Solutions from $128.00 to $91.00 and set a “buy” rating on the stock in a research note on Friday, October 30th. Finally, KeyCorp lowered their target price on shares of Kratos Defense & Security Solutions from $130.00 to $75.00 and set an “overweight” rating on the stock in a research note on Monday, November 2nd. Two research analysts have rated the stock with a Strong Buy rating, twenty-two 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 MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $77.40.

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 stock was sold at an average price of $56.16, for a total value of $393,120.00. Following the sale, the insider owned 288,111 shares of the company’s stock, valued at $16,180,313.76. The trade was a 2.37% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 26,500 shares of the business’s stock in a transaction on Monday, August 17th. The shares were sold at an average price of $63.25, for a total value of $1,676,125.00. Following the completion of the sale, the insider directly owned 182,084 shares in the company, valued at approximately $11,516,813. This represents a 12.70% decrease in their position. 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. Insiders have sold 373,013 shares of company stock worth $23,340,582 over the last three months. 1.50% of the stock is currently owned by insiders.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos reached a long-term agreement with Seagate Space to use its Gateway offshore launch platform. The deal supports a first mission planned for 2027, with additional launches anticipated in later years—potentially creating a recurring source of activity in national-security launches. Article: Kratos and Seagate Space partnership
• Positive Sentiment: Kratos reported Q3 revenue of $471.8 million, up 35.7% year over year, and non-GAAP earnings of $0.24 per share, ahead of consensus. Its next-quarter revenue outlook was also reported above analyst estimates, while management cited growth plans for 2027. Article: KTOS Q3 2026 deep dive
• Positive Sentiment: The company also won a contract to provide gateway and antenna systems for Gulf Space Technology’s software-defined satellite, complementing its work on the customer’s satellite operations center. Article: Gulf Space Technology contract
• Negative Sentiment: Barclays lowered its KTOS price target from $90 to $80, although it maintained an Overweight rating. The reduction could weigh on sentiment despite the firm’s continued positive stance. Article: Barclays price-target update
• Neutral Sentiment: Recent coverage also flags supply-chain and cash-flow pressures as risks to execution, even as drone, engine, hypersonics and space programs support the company’s growth outlook. Article: Kratos and Seagate Space partnership

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several large investors have recently made changes to their positions in KTOS. Harbor Investment Advisory LLC bought a new stake in Kratos Defense & Security Solutions during the 2nd quarter worth about $25,000. Vision Retirement LLC lifted its position in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 317 shares during the period. Balance Wealth Partners LLC acquired a new position in Kratos Defense & Security Solutions during the 3rd quarter valued at about $30,000. Provenance Wealth Advisors LLC boosted its stake in shares of Kratos Defense & Security Solutions by 128.9% in the 3rd quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock valued at $32,000 after purchasing an additional 419 shares during the last quarter. Finally, Compass Financial Management LLC bought a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at about $34,000. Institutional investors own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Stock Down 2.6%

The firm’s 50 day moving average price is $43.20 and its 200-day moving average price is $62.15. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The company has a market cap of $6.89 billion, a P/E ratio of 306.00 and a beta of 1.18.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Thursday, November 5th. The aerospace company reported $0.24 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The business had revenue of $471.80 million during the quarter, compared to the consensus estimate of $471.40 million. During the same period in the previous year, the firm posted $0.14 earnings per share. Kratos Defense & Security Solutions’s revenue for the quarter was up 35.7% compared to the same quarter last year. As a group, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.59 EPS for the current year.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions is a defense technology company that develops products and services for U.S. government agencies, national security organizations, and allied governments. Its work spans unmanned systems, satellite communications, microwave electronics, command-and-control systems, and training and simulation. The company’s offerings include unmanned aerial vehicles and target drones, as well as systems and components used in space and satellite communications and other defense applications.