Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 6.7% Higher – Still a Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares traded up 6.7% on Thursday . The stock traded as high as $78.32 and last traded at $77.68. 2,488,437 shares changed hands during trading, a decline of 30% from the average session volume of 3,533,682 shares. The stock had previously closed at $72.78.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on KTOS. BNP Paribas Exane initiated coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, November 18th. They issued a “neutral” rating and a $80.00 target price for the company. Robert W. Baird raised their price target on shares of Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the company an “outperform” rating in a report on Friday, September 26th. Citigroup reaffirmed an “outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Thursday, October 2nd. Royal Bank Of Canada raised their target price on Kratos Defense & Security Solutions from $50.00 to $65.00 and gave the company an “outperform” rating in a report on Friday, August 8th. Finally, Truist Financial upped their price target on Kratos Defense & Security Solutions from $78.00 to $125.00 and gave the stock a “buy” rating in a research note on Wednesday, October 15th. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat, Kratos Defense & Security Solutions currently has an average rating of “Moderate Buy” and an average price target of $82.06.

Kratos Defense & Security Solutions Trading Down 1.5%

The company has a quick ratio of 3.68, a current ratio of 4.30 and a debt-to-equity ratio of 0.04. The company has a 50-day moving average price of $83.88 and a 200-day moving average price of $65.44. The company has a market capitalization of $12.92 billion, a price-to-earnings ratio of 588.51 and a beta of 1.14.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Tuesday, November 4th. The aerospace company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. Kratos Defense & Security Solutions had a return on equity of 3.14% and a net margin of 1.56%.The company had revenue of $347.60 million for the quarter, compared to the consensus estimate of $323.01 million. During the same period in the previous year, the business posted $0.11 EPS. The company’s revenue for the quarter was up 26.0% on a year-over-year basis. Research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Insider Activity

In related news, insider Jonah Adelman sold 30,000 shares of the stock in a transaction dated Tuesday, November 25th. The shares were sold at an average price of $74.80, for a total value of $2,244,000.00. Following the completion of the sale, the insider owned 9,348 shares in the company, valued at approximately $699,230.40. This trade represents a 76.24% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Eric M. Demarco sold 200,000 shares of the business’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $74.09, for a total value of $14,818,000.00. Following the transaction, the chief executive officer owned 1,196,237 shares in the company, valued at $88,629,199.33. This represents a 14.32% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last quarter, insiders sold 448,866 shares of company stock worth $33,858,748. Corporate insiders own 2.37% of the company’s stock.

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors have recently modified their holdings of the company. Allworth Financial LP raised its stake in shares of Kratos Defense & Security Solutions by 34.3% in the third quarter. Allworth Financial LP now owns 1,577 shares of the aerospace company’s stock valued at $144,000 after purchasing an additional 403 shares in the last quarter. IFP Advisors Inc acquired a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $246,000. Swiss Life Asset Management Ltd bought a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth about $718,000. Strategic Advocates LLC acquired a new stake in shares of Kratos Defense & Security Solutions during the 3rd quarter valued at about $101,000. Finally, JPMorgan Chase & Co. increased its stake in Kratos Defense & Security Solutions by 93.0% in the third quarter. JPMorgan Chase & Co. now owns 964,973 shares of the aerospace company’s stock valued at $88,170,000 after acquiring an additional 465,100 shares during the period. Institutional investors and hedge funds own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc engages in the provision of mission critical products, services and solutions for United States national security priorities. It operates through the Kratos Government Solutions (KGS) and Unmanned Systems (US) segments. The KGS segment consists of an aggregation of KGS operating segments, including microwave electronic products, space, satellite and cyber, training solutions.