Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up – Time to Buy?

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) gapped up before the market opened on Thursday . The stock had previously closed at $57.30, but opened at $63.96. Kratos Defense & Security Solutions shares last traded at $64.3520, with a volume of 2,659,290 shares trading hands.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Reports that the U.S. government may fund or take equity stakes in domestic drone makers have raised hopes that Kratos could benefit from stronger demand, policy support, and a more favorable growth outlook. Kratos And US Drone Funding Talks Could Reshape Growth And Risk Profile
• Positive Sentiment: Heavy call-option buying suggests traders are positioning for additional upside tied to the drone-sector funding theme. Kratos Defense & Security Solutions Sees Unusually Large Options Volume (NASDAQ:KTOS)
• Neutral Sentiment: Several insiders recently sold shares, including director Bobbi Doorenbos and executives Steven S. Fendley and Jonah Adelman. While the sales can pressure sentiment, at least one was made under a pre-arranged 10b5-1 plan and does not necessarily indicate a change in fundamentals. Jonah Adelman insider sale details

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on the stock. Piper Sandler cut their price target on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating on the stock in a report on Thursday, May 7th. Royal Bank Of Canada cut their price target on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. Canaccord Genuity Group upped their price target on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a “buy” rating in a report on Thursday, May 7th. BNP Paribas Exane upped their price target on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a report on Thursday, May 7th. Finally, UBS Group restated a “neutral” rating and issued a $82.00 price target on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $96.28.

Kratos Defense & Security Solutions Trading Down 1.6%

The stock’s 50 day moving average is $65.91 and its two-hundred day moving average is $81.05. The company has a market capitalization of $12.03 billion, a PE ratio of 377.24 and a beta of 1.06. 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 released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates 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 company had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. During the same period in the prior year, the firm earned $0.12 earnings per share. The firm’s revenue for the quarter was up 22.6% compared to the same quarter last year. As a group, sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current fiscal year.

Insider Buying and Selling

In related news, insider Stacey G. Rock sold 4,000 shares of the company’s stock in a transaction dated Thursday, May 28th. The shares were sold at an average price of $65.47, for a total value of $261,880.00. Following the completion of the sale, the insider directly owned 13,896 shares of the company’s stock, valued at $909,771.12. This represents a 22.35% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the company’s stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $57.24, for a total transaction of $400,680.00. Following the completion of the sale, the insider directly owned 344,090 shares of the company’s stock, valued at approximately $19,695,711.60. This trade represents a 1.99% decrease in their ownership of the stock. 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 sold 199,388 shares of company stock valued at $14,283,667 over the last quarter. 1.50% of the stock is owned by company insiders.

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds have recently added to or reduced their stakes in KTOS. Greenleaf Trust raised its position in Kratos Defense & Security Solutions by 2.7% during the 4th quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company’s stock worth $291,000 after buying an additional 100 shares during the last quarter. LVW Advisors LLC raised its position in Kratos Defense & Security Solutions by 3.0% during the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company’s stock worth $278,000 after buying an additional 107 shares during the last quarter. CENTRAL TRUST Co raised its position in Kratos Defense & Security Solutions by 7.3% during the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company’s stock worth $129,000 after buying an additional 115 shares during the last quarter. Quadrant Capital Group LLC raised its position in Kratos Defense & Security Solutions by 2.1% during the 4th quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock worth $449,000 after buying an additional 122 shares during the last quarter. Finally, Parkside Financial Bank & Trust raised its position in Kratos Defense & Security Solutions by 6.9% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock worth $148,000 after buying an additional 125 shares during the last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Company Profile

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.