Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock: Insider Deanna Lund Sells 7,000 Shares

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) CFO Deanna Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, October 26th. The shares were sold at an average price of $40.00, for a total value of $280,000.00. Following the sale, the chief financial officer owned 266,740 shares of the company’s stock, valued at approximately $10,669,600. This trade represents a 2.56% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Price Performance

KTOS opened at $43.59 on Friday. The stock has a market capitalization of $8.18 billion, a P/E ratio of 85.77 and a beta of 1.11. The stock has a 50-day moving average price of $45.46 and a 200-day moving average price of $65.15. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 12-month low of $36.37 and a 12-month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The company’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same period last year, the firm earned $0.11 earnings per share. Equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current fiscal year.

Institutional Trading of Kratos Defense & Security Solutions

Large investors have recently added to or reduced their stakes in the business. Paradigm Capital Management Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions during the 2nd quarter worth $34,842,000. Bamco Inc. NY purchased a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter worth $53,746,000. Ausbil Investment Management Ltd increased its stake in shares of Kratos Defense & Security Solutions by 623.2% in the 3rd quarter. Ausbil Investment Management Ltd now owns 40,339 shares of the aerospace company’s stock worth $1,722,000 after purchasing an additional 34,761 shares in the last quarter. Principal Financial Group Inc. raised its holdings in Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock worth $74,520,000 after purchasing an additional 342,789 shares during the period. Finally, Pinnacle Associates Ltd. raised its holdings in Kratos Defense & Security Solutions by 37.7% in the 3rd quarter. Pinnacle Associates Ltd. now owns 447,302 shares of the aerospace company’s stock worth $19,095,000 after purchasing an additional 122,532 shares during the period. 75.92% of the stock is currently owned by institutional investors.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. Cantor Fitzgerald cut their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 4th. Truist Financial cut their target price on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a research report on Thursday, August 13th. Rothschild & Co Redburn began coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, October 6th. They set a “buy” rating and a $70.00 target price for the company. Weiss Ratings lowered shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. Finally, BTIG Research increased their price target on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a report on Wednesday, August 5th. Three research analysts have rated the stock with a Strong Buy rating, twenty have given a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and an average price target of $88.25.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: $33.6 million NASA contract: Kratos will design, build and deliver the power-conversion system for NASA’s Space Reactor-1 Freedom spacecraft through subcontractor Sierra Lobo. The award strengthens KTOS’s position in space and national-security programs and provides incremental backlog ahead of its third-quarter results. NASA contract announcement
• Positive Sentiment: Solid growth and earnings setup: Analysts highlighted Kratos’s 30.5% year-over-year revenue growth to $458.8 million in the latest reported quarter, 19.1% organic growth and a 1.3x trailing book-to-bill ratio. Zacks also identified KTOS as having favorable Earnings ESP and other conditions that could support an earnings beat. Kratos earnings expectations
• Positive Sentiment: Analyst support remains favorable: Seeking Alpha maintained a Buy view, citing strong bookings and production ramp-ups across unmanned systems, propulsion and defense electronics. RBC retained an Outperform rating despite reducing its target.
• Neutral Sentiment: RBC lowered its price target to $55 from $80 while keeping an Outperform rating. The cut signals more cautious valuation expectations, although the revised target still indicates potential upside from the referenced trading level. RBC price target update
• Negative Sentiment: Profitability and valuation risks: Kratos remains in an investment phase, with modest GAAP profitability and negative free cash flow. Its elevated earnings multiple leaves the stock vulnerable if margins, cash generation or upcoming results disappoint.
• Negative Sentiment: Insider sale and sector pressure: CFO Deanna Lund sold 7,000 shares worth approximately $280,000 under a pre-arranged Rule 10b5-1 plan. Separately, a prolonged defense-sector sell-off could weigh on KTOS even as company-specific news improves its outlook.

Kratos Defense & Security Solutions Company Profile

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.