Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 3.7% Higher on Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares rose 3.7% on Thursday after BTIG Research raised their price target on the stock from $100.00 to $104.00. BTIG Research currently has a buy rating on the stock. Kratos Defense & Security Solutions traded as high as $59.10 and last traded at $57.41. 5,249,298 shares were traded during trading, an increase of 17% from the average session volume of 4,497,768 shares. The stock had previously closed at $55.34.

KTOS has been the topic of several other reports. BNP Paribas Exane lifted their price objective on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Truist Financial raised Kratos Defense & Security Solutions to a “strong-buy” rating in a report on Friday, May 1st. Jefferies Financial Group restated a “buy” rating and issued a $80.00 target price on shares of Kratos Defense & Security Solutions in a research report on Wednesday, July 8th. The Goldman Sachs Group lowered their price target on 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. Finally, Royal Bank Of Canada reduced their price objective on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating for the company in a research note on Thursday, May 7th. Three research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating and three have assigned a Hold rating to the stock. Based on data from MarketBeat.com, the stock has a consensus rating of “Buy” and an average target price of $101.29.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, SVP Marie Mendoza sold 1,500 shares of the stock in a transaction dated Monday, June 15th. The shares were sold at an average price of $57.93, for a total value of $86,895.00. Following the completion of the sale, the senior vice president owned 64,447 shares in the company, valued at approximately $3,733,414.71. This represents a 2.27% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the firm’s stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $48.55, for a total transaction of $242,750.00. Following the completion of the transaction, the chief financial officer directly owned 280,487 shares in the company, valued at $13,617,643.85. This trade represents a 1.75% 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 have sold 140,036 shares of company stock worth $7,810,417 in the last 90 days. 1.50% of the stock is owned by insiders.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: New U.S. Army contract strengthens the defense backlog. Kratos was awarded a contract from the Army’s DEVCOM C5ISR Center to develop an Enhanced Seeker for the Javelin Close Combat Missile System. The program expands Kratos’ role in precision weapons and missile modernization, although financial terms were not disclosed. Kratos Receives U.S. Army Contract
• Positive Sentiment: Kratos delivered a significant second-quarter beat. Adjusted earnings were $0.21 per share, versus approximately $0.13-$0.14 expected and $0.11 a year earlier. Revenue rose 30.5% year over year to $458.8 million, well above estimates near $410 million. Government Solutions revenue increased 36.4%, supported by demand for hypersonics, space, jet engines, counter-drone systems and unmanned aircraft. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Management raised its growth outlook. Full-year 2026 revenue guidance was lifted to about $1.8 billion, above the roughly $1.7 billion consensus, with projected organic growth of 19%-23%. Analysts at Piper Sandler and BTIG also became more constructive; BTIG raised its price target to $104 and maintained a Buy rating. Kratos Upgraded at Piper Sandler
• Neutral Sentiment: Third-quarter guidance was broadly in line. Revenue guidance of $460 million-$480 million brackets the $462.8 million analyst estimate, supporting continued growth but offering limited near-term incremental surprise.
• Negative Sentiment: Valuation and mixed analyst actions remain risks. Kratos trades at a very high earnings multiple, leaving the stock vulnerable if growth or execution slows. Cantor Fitzgerald issued a more cautious forecast and reduced its price target, while CFO Deanna Lund sold 5,000 shares under a pre-arranged Rule 10b5-1 plan. The sale was only 1.75% of her holdings, limiting its significance. Kratos CFO Stock Sale

Institutional Trading of Kratos Defense & Security Solutions

Several large investors have recently added to or reduced their stakes in KTOS. Geode Capital Management LLC increased its stake in shares of Kratos Defense & Security Solutions by 3.5% in the 4th quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after acquiring an additional 148,622 shares during the last quarter. Morgan Stanley boosted its position in shares of Kratos Defense & Security Solutions by 3.9% during the 4th quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock valued at $251,345,000 after acquiring an additional 124,607 shares during the last quarter. Invesco Ltd. boosted its position in shares of Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock valued at $278,331,000 after acquiring an additional 209,189 shares during the last quarter. Northern Trust Corp grew its holdings in shares of Kratos Defense & Security Solutions by 13.6% in the third quarter. Northern Trust Corp now owns 2,072,700 shares of the aerospace company’s stock valued at $189,383,000 after purchasing an additional 247,652 shares during the period. Finally, Corient Private Wealth LLC grew its holdings in shares of Kratos Defense & Security Solutions by 7,701.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company’s stock valued at $120,966,000 after purchasing an additional 1,573,123 shares during the period. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Trading Up 3.7%

The stock has a market capitalization of $10.77 billion, a price-to-earnings ratio of 337.71 and a beta of 1.08. The company’s 50-day moving average is $52.50 and its 200-day moving average is $71.15. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating 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 3.37%. The company had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. During the same period in the previous year, the business posted $0.11 EPS. Kratos Defense & Security Solutions’s revenue was up 30.5% on a year-over-year basis. Research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.48 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.