Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 2.7% – Here’s Why

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price rose 2.7% during trading on Monday . The company traded as high as $63.17 and last traded at $62.42. 4,540,038 shares were traded during trading, an increase of 1% from the average daily volume of 4,505,535 shares. The stock had previously closed at $60.77.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos’ Q2 2026 results showed substantial momentum: revenue rose 30.5% year over year to $458.8 million, beating expectations, while adjusted earnings of $0.21 per share exceeded the consensus estimate of $0.14. Management cited demand for rockets and hypersonic systems. Kratos Q2 2026 Earnings Call Transcript
• Positive Sentiment: The company supplied systems for Japan’s missile-defense flight test and won a U.S. Army contract to provide next-generation Javelin missile seekers. The wins strengthen Kratos’ position in allied missile defense, tactical weapons and hypersonics—areas benefiting from elevated defense spending. Kratos Lands Javelin Seeker Deal
• Positive Sentiment: Analyst sentiment remains broadly constructive. The average price target implies roughly 66% potential upside, although the article notes that price targets alone have limited predictive value. Noble Financial also raised its FY2026 EPS forecast to $0.63 from $0.59 and FY2027 EPS to $0.84 from $0.83. Wall Street Analysts See Upside in Kratos
• Neutral Sentiment: Baron Capital highlighted Kratos’ strong long-term fundamentals in its Q2 investor letter, supporting the growth narrative, though the fund’s performance lagged its benchmark during the quarter. Strong Fundamentals Position Kratos for Long-Term Upside
• Negative Sentiment: Valuation is a key concern. KTOS has produced a 316.5% three-year return, but valuation measures indicate investors are paying a premium for future growth. Supply-chain constraints could also limit execution, making the stock vulnerable if growth expectations moderate. Kratos Stock Strong on Returns but Rich on Sales
• Negative Sentiment: Noble Financial lowered its Q4 2026 EPS estimate to $0.22 from $0.26, signaling near-term earnings pressure despite higher full-year forecasts. With a very high earnings multiple, even small estimate reductions can weigh on the shares. Kratos Analyst Estimate Changes

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. Weiss Ratings downgraded Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Wedbush initiated coverage on Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They issued an “outperform” rating and a $85.00 price objective for the company. UBS Group restated 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. Citizens Jmp reduced their target price on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research report on Friday, May 8th. Finally, Truist Financial upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and an average price target of $101.29.

Kratos Defense & Security Solutions Stock Down 0.3%

The company’s 50 day moving average price is $52.26 and its 200 day moving average price is $69.28. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04. The firm has a market capitalization of $11.92 billion, a price-to-earnings ratio of 373.59 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The firm’s revenue was up 30.5% on a year-over-year basis. During the same period in the prior year, the firm earned $0.11 EPS. As a group, research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In other news, CFO Deanna H. Lund sold 5,000 shares of the firm’s stock in a transaction dated Monday, June 1st. The stock was sold at an average price of $63.74, for a total value of $318,700.00. Following the completion of the transaction, the chief financial officer directly owned 290,161 shares in the company, valued at $18,494,862.14. This trade represents a 1.69% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $52.13, for a total value of $338,845.00. Following the sale, the insider directly owned 221,550 shares of the company’s stock, valued at $11,549,401.50. This trade represents a 2.85% decrease in their position. 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 a total of 144,036 shares of company stock valued at $8,034,017 over the last three months. Company insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently made changes to their positions in KTOS. New Age Alpha Advisors LLC raised its holdings in Kratos Defense & Security Solutions by 435.1% in the 4th quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company’s stock valued at $3,265,000 after acquiring an additional 34,973 shares during the last quarter. BNP Paribas Financial Markets lifted its stake in Kratos Defense & Security Solutions by 245.2% in the 4th quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company’s stock worth $45,673,000 after purchasing an additional 427,396 shares in the last quarter. M&T Bank Corp boosted its holdings in shares of Kratos Defense & Security Solutions by 6,900.4% during the 4th quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company’s stock worth $13,423,000 after purchasing an additional 174,305 shares during the last quarter. Principal Financial Group Inc. grew its position in shares of Kratos Defense & Security Solutions by 65.2% in the fourth quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company’s stock valued at $54,206,000 after purchasing an additional 281,811 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. AG purchased a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter valued at approximately $1,821,000. 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.