Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 4.4% – What’s Next?

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) rose 4.4% during mid-day trading on Thursday . The stock traded as high as $58.88 and last traded at $55.35. 6,693,360 shares traded hands during trading, an increase of 45% from the average daily volume of 4,618,519 shares. The stock had previously closed at $53.04.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos won an approximate $36 million sole-source contract for a new air defense missile system, boosting backlog and revenue visibility.
• Positive Sentiment: Wedbush initiated coverage with Outperform and an $85 price target, signaling optimism about Kratos’ role in U.S. defense spending.
• Positive Sentiment: Kratos became the exclusive U.S. manufacturer for Elroy Air and signed an initial JV agreement with Barq Group, expanding growth opportunities. Article Title
• Positive Sentiment: Commentary linking KTOS to the proposed Golden Dome program is reinforcing expectations for long-term defense demand. Article Title
• Positive Sentiment: Strong results from AeroVironment lifted sentiment across defense names, including Kratos. Article Title
• Neutral Sentiment: Insider Steven Fendley sold 7,000 shares under a pre-arranged Rule 10b5-1 plan, which is worth watching but does not appear to signal a major change in fundamentals. Article Title

Analyst Ratings Changes

KTOS has been the topic of several research reports. Truist Financial raised shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research report on Friday, May 1st. UBS Group reiterated a “neutral” rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. BNP Paribas Exane lifted their price target on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a research note on Thursday, May 7th. Clear Str upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a report on Wednesday, April 29th. Finally, Jefferies Financial Group set a $80.00 price objective on Kratos Defense & Security Solutions in a research report on Sunday, May 10th. Four investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Buy” and a consensus price target of $100.44.

Kratos Defense & Security Solutions Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The company has a fifty day moving average price of $57.17 and a two-hundred day moving average price of $77.97. The company has a market cap of $10.38 billion, a P/E ratio of 325.59 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The business had revenue of $371.00 million for the quarter, compared to analyst estimates of $345.00 million. During the same quarter in the prior year, the company posted $0.12 earnings per share. Kratos Defense & Security Solutions’s revenue was up 22.6% on a year-over-year basis. On average, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.47 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Steven S. Fendley sold 35,000 shares of the company’s stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $58.23, for a total transaction of $2,038,050.00. Following the sale, the insider owned 309,087 shares in the company, valued at $17,998,136.01. This represents a 10.17% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction that occurred on Friday, May 1st. The shares were sold at an average price of $62.10, for a total value of $310,500.00. Following the completion of the sale, the chief financial officer directly owned 295,200 shares of the company’s stock, valued at approximately $18,331,920. The trade was a 1.67% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders have sold 151,778 shares of company stock worth $9,063,063. Corporate insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of KTOS. Mcguire Capital Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the 4th quarter worth about $25,000. Atlantic Union Bankshares Corp lifted its stake in Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock valued at $29,000 after purchasing an additional 380 shares during the last quarter. Vision Retirement LLC grew its holdings in Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares during the period. Rakuten Securities Inc. bought a new position in Kratos Defense & Security Solutions during the second quarter worth about $31,000. Finally, Murphy & Mullick Capital Management Corp increased its position in Kratos Defense & Security Solutions by 115.4% during the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after buying an additional 225 shares during the last quarter. 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.