Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 2.4% on Insider Selling

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) were down 2.4% during mid-day trading on Wednesday after an insider sold shares in the company. The stock traded as low as $54.25 and last traded at $54.82. Approximately 2,717,468 shares traded hands during mid-day trading, a decline of 38% from the average daily volume of 4,360,943 shares. The stock had previously closed at $56.19.

Specifically, insider David M. Carter sold 4,000 shares of the stock in a transaction dated Friday, June 5th. The shares were sold at an average price of $59.16, for a total transaction of $236,640.00. Following the completion of the transaction, the insider owned 70,092 shares of the company’s stock, valued at $4,146,642.72. This trade represents a 5.40% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Ratings Changes

Several research analysts have weighed in on the stock. Clear Str raised shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. UBS Group reaffirmed a “neutral” rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Cantor Fitzgerald restated an “overweight” rating and set a $115.00 price target on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Citizens Jmp decreased their price target on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research note on Friday, May 8th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, April 21st. Three research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $96.28.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos announced it is significantly expanding production capacity for its Spartan turbojet engines to meet rising demand from missile and loitering munition programs, reinforcing the company’s role in defense propulsion and supporting longer-term revenue growth. Article: Kratos Expands Production of Spartan Engines to Support Growing Missile and Loitering Munition Demand
• Positive Sentiment: Recent analyst commentary highlighted Kratos’ growth opportunities in hypersonics and autonomous systems, including ramping Valkyrie drone production and improving Unmanned Systems profitability, which could support future upside. Article: Is KTOS Building a Growth Engine in Hypersonics & Autonomous Systems?
• Neutral Sentiment: Insider David M. Carter sold 4,000 shares under a pre-arranged 10b5-1 plan. The sale was relatively small and automatic, but insider selling can still create some caution among investors. Article: Insider sale filing
• Negative Sentiment: Some recent market commentary questioned whether KTOS has become too expensive after its multiyear run, with the stock still vulnerable to valuation-driven pullbacks despite strong long-term gains. Article: Is Kratos Defense & Security Solutions (KTOS) Pricing In Too Much After Its Multiyear Run?

Kratos Defense & Security Solutions Trading Down 2.4%

The company’s 50 day moving average price is $63.00 and its 200 day moving average price is $80.45. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The firm has a market cap of $10.28 billion, a PE ratio of 322.47 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted 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 net margin of 2.08% and a return on equity of 2.82%. The business had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same quarter last year, the firm posted $0.12 earnings per share. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. As a group, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the company. Greenleaf Trust lifted its stake in Kratos Defense & Security Solutions by 2.7% in the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company’s stock worth $291,000 after acquiring an additional 100 shares during the last quarter. LVW Advisors LLC lifted its stake in Kratos Defense & Security Solutions by 3.0% in the fourth quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company’s stock worth $278,000 after acquiring an additional 107 shares during the last quarter. CENTRAL TRUST Co lifted its stake in Kratos Defense & Security Solutions by 7.3% in the fourth quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company’s stock worth $129,000 after acquiring an additional 115 shares during the last quarter. Quadrant Capital Group LLC lifted its stake in Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock worth $449,000 after acquiring an additional 122 shares during the last quarter. Finally, Parkside Financial Bank & Trust lifted its stake in Kratos Defense & Security Solutions by 6.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock worth $148,000 after acquiring an additional 125 shares during the last quarter. Hedge funds and other institutional investors own 75.92% of the company’s stock.

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.