Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 4.5% on Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares were up 4.5% on Monday after Zacks Research upgraded the stock from a hold rating to a strong-buy rating. The stock traded as high as $40.56 and last traded at $40.43. 3,470,521 shares traded hands during mid-day trading, a decline of 20% from the average session volume of 4,357,815 shares. The stock had previously closed at $38.68.

Other equities research analysts have also recently issued reports about the stock. BTIG Research boosted their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Stifel Nicolaus cut their price objective on shares of Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Wedbush initiated coverage on Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They set an “outperform” rating and a $85.00 target price for the company. Barclays initiated coverage on shares of Kratos Defense & Security Solutions in a report on Friday, October 9th. They issued an “overweight” rating and a $90.00 price target on the stock. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Monday, October 19th. Three investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $88.25.

Insiders Place Their Bets

In related news, SVP Marie Mendoza sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The shares were sold at an average price of $48.50, for a total transaction of $48,500.00. Following the completion of the sale, the senior vice president directly owned 61,200 shares in the company, valued at approximately $2,968,200. This trade represents a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna Lund sold 7,000 shares of the firm’s stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $48.78, for a total transaction of $341,460.00. Following the sale, the chief financial officer owned 273,511 shares of the company’s stock, valued at $13,341,866.58. This represents a 2.50% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders sold 375,013 shares of company stock valued at $23,526,932. Insiders own 1.50% of the company’s stock.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos received a $33.6 million NASA contract to design, build and deliver the power conversion system for Space Reactor-1 Freedom, a nuclear-powered interplanetary spacecraft targeted for launch in 2028. The work will be performed as a subcontractor to Sierra Lobo under NASA’s SpaceDOC III program, adding to Kratos’ space and national-security backlog. Kratos NASA contract announcement
• Positive Sentiment: Macquarie initiated coverage of KTOS with an “outperform” rating, adding another bullish analyst view amid investor interest in defense technology, drones and space systems. Macquarie initiates coverage
• Positive Sentiment: Kratos was included among drone-technology stocks viewed as potential beneficiaries of rising adoption, reinforcing the long-term investment case tied to unmanned systems and advanced defense technologies. Drone technology stocks article
• Neutral Sentiment: RBC maintained its “outperform” rating but lowered its price target from $80 to $55. The downgrade reflects reduced near-term valuation expectations, although the new target still implies meaningful upside from the reported trading level. RBC price target update
• Negative Sentiment: Defense stocks have experienced an unusually prolonged sector sell-off, with the aerospace and defense ETF XAR surrendering its 2026 gain. That broader risk-off environment can pressure KTOS even after positive contract news, particularly ahead of quarterly earnings. Defense stocks to watch

Institutional Trading of Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. Vision Retirement LLC lifted its stake in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after acquiring an additional 317 shares in the last quarter. Harbor Investment Advisory LLC purchased a new position in Kratos Defense & Security Solutions in the second quarter worth approximately $25,000. IMG Wealth Management Inc. grew its stake in shares of Kratos Defense & Security Solutions by 427.0% during the first quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock worth $37,000 after purchasing an additional 427 shares in the last quarter. Geneos Wealth Management Inc. boosted its position in shares of Kratos Defense & Security Solutions by 333.3% during the 1st quarter. Geneos Wealth Management Inc. now owns 650 shares of the aerospace company’s stock worth $46,000 after acquiring an additional 500 shares in the last quarter. Finally, Compass Financial Management LLC purchased a new position in Kratos Defense & Security Solutions in the second quarter valued at approximately $34,000. Hedge funds and other institutional investors own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Price Performance

The stock’s 50-day moving average is $46.22 and its 200 day moving average is $65.81. The stock has a market capitalization of $7.73 billion, a PE ratio of 242.18 and a beta of 1.11. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The business had revenue of $458.80 million during 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 business’s quarterly revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the business earned $0.11 EPS. As a group, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current year.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.