BTIG Research Issues Pessimistic Forecast for Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price

Kratos Defense & Security Solutions (NASDAQ:KTOS) had its target price reduced by equities researchers at BTIG Research from $104.00 to $65.00 in a research report issued on Friday, Benzinga reports. The firm presently has a “buy” rating on the aerospace company’s stock. BTIG Research‘s price objective points to a potential upside of 94.67% from the stock’s current price.

Several other research analysts also recently issued reports on the company. Jefferies Financial Group downgraded Kratos Defense & Security Solutions from a “buy” rating to a “negative” rating in a research note on Monday, October 19th. Guggenheim began coverage on shares of Kratos Defense & Security Solutions in a research report on Monday, September 14th. They set a “buy” rating and a $74.00 target price on the stock. Cantor Fitzgerald reduced their target price on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating on the stock in a report on Tuesday, August 4th. Weiss Ratings restated a “sell (d+)” rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday. Finally, The Goldman Sachs Group decreased their price target on shares of Kratos Defense & Security Solutions from $88.00 to $77.00 and set a “buy” rating for the company in a research report on Monday, October 12th. 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 issued a Sell rating to the company. According to data from MarketBeat.com, Kratos Defense & Security Solutions has an average rating of “Moderate Buy” and a consensus target price of $81.70.

Kratos Defense & Security Solutions Trading Down 7.1%

Shares of KTOS stock opened at $33.39 on Friday. The firm has a market capitalization of $6.27 billion, a P/E ratio of 196.41 and a beta of 1.18. Kratos Defense & Security Solutions has a twelve month low of $32.50 and a twelve month high of $134.00. 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 stock’s fifty day simple moving average is $43.85 and its 200 day simple moving average is $63.03.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Thursday, November 5th. The aerospace company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.21 by $0.03. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The firm had revenue of $471.80 million during the quarter, compared to the consensus estimate of $471.40 million. During the same period last year, the company earned $0.14 earnings per share. The business’s quarterly revenue was up 35.7% on a year-over-year basis. As a group, sell-side analysts predict that Kratos Defense & Security Solutions will post 0.59 EPS for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, CFO Deanna Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $40.00, for a total value of $280,000.00. Following the transaction, the chief financial officer directly owned 266,740 shares of the company’s stock, valued at $10,669,600. The trade was a 2.56% 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, SVP Marie Mendoza sold 1,000 shares of the company’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $48.50, for a total value of $48,500.00. Following the completion of the sale, the senior vice president owned 61,200 shares in the company, valued at $2,968,200. The trade was a 1.61% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 373,013 shares of company stock worth $23,340,582. 1.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in the company. Paradigm Capital Management Inc. NY bought a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at $34,842,000. Bamco Inc. NY acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth $53,746,000. Ausbil Investment Management Ltd raised its stake in Kratos Defense & Security Solutions by 623.2% during the third quarter. Ausbil Investment Management Ltd now owns 40,339 shares of the aerospace company’s stock worth $1,722,000 after buying an additional 34,761 shares during the last quarter. Principal Financial Group Inc. raised its stake in Kratos Defense & Security Solutions by 48.0% during the first quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock worth $74,520,000 after buying an additional 342,789 shares during the last quarter. Finally, Pinnacle Associates Ltd. lifted its holdings in Kratos Defense & Security Solutions by 37.7% in the third quarter. Pinnacle Associates Ltd. now owns 447,302 shares of the aerospace company’s stock valued at $19,095,000 after buying an additional 122,532 shares during the period. Institutional investors own 75.92% of the company’s stock.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Third-quarter revenue rose 35.7% year over year to $471.8 million, while adjusted EPS of $0.24 topped the $0.21 consensus estimate. Orders reached $1.037 billion, a 2.2-to-1 book-to-bill ratio, lifting backlog to $2.65 billion. Kratos Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Management highlighted a ramp in hypersonics alongside record backlog, suggesting potential for continued growth as programs advance. Kratos Q3 2026 Earnings Call Transcript
• Positive Sentiment: Kratos also secured a $33.6 million NASA subcontract for the Space Reactor-1 Freedom project, adding to its space-related opportunities. NASA Contract and Q3 Setup
• Neutral Sentiment: Fourth-quarter revenue guidance of $480 million to $510 million has a midpoint slightly above analysts’ $493.5 million estimate; full-year revenue guidance is about $1.8 billion, in line with consensus. Kratos Beats Q3 Expectations, Updates Outlook
• Negative Sentiment: Free cash flow was negative, and GAAP operating income turned to a loss; the company reported a small GAAP net loss even as adjusted EBITDA increased. These results raise questions about how quickly growth and investment will translate into cash and reported profits. Sales Up 36%, Free Cash Flow Negative

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.