Kratos Defense & Security Solutions (NASDAQ:KTOS) Now Covered by Rothschild & Co Redburn

Stock analysts at Rothschild & Co Redburn started coverage on shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) in a research report issued on Tuesday, Marketbeat Ratings reports. The firm set a “buy” rating and a $70.00 price target on the aerospace company’s stock. Rothschild & Co Redburn’s price objective would suggest a potential upside of 66.76% from the stock’s previous close.

A number of other equities research analysts have also weighed in on KTOS. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and decreased their price objective for the company from $99.00 to $82.00 in a report on Friday, June 12th. Truist Financial reduced their price target on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating on the stock in a research report on Thursday, August 13th. Canaccord Genuity Group lifted their price objective on shares of Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Wedbush initiated coverage on Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $85.00 target price on the stock. Finally, Citigroup reissued a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Three equities research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average price target of $95.06.

Kratos Defense & Security Solutions Trading Down 4.0%

Shares of NASDAQ:KTOS traded down $1.73 on Tuesday, hitting $41.98. The company had a trading volume of 5,246,227 shares, compared to its average volume of 4,355,462. Kratos Defense & Security Solutions has a 1 year low of $40.92 and a 1 year high of $134.00. The firm has a market capitalization of $7.88 billion, a price-to-earnings ratio of 246.83 and a beta of 1.11. The firm’s 50-day simple moving average is $50.93 and its two-hundred day simple moving average is $56.65. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates 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 net margin of 2.03% and a return on equity of 3.07%. The business’s revenue for the quarter was up 30.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.11 earnings per share. Equities analysts anticipate that Kratos Defense & Security Solutions will post 0.57 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CEO Eric M. Demarco sold 300,000 shares of the company’s stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the sale, the chief executive officer directly owned 761,632 shares in the company, valued at $48,995,786.56. This represents a 28.26% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $56.16, for a total value of $393,120.00. Following the transaction, the insider directly owned 288,111 shares in the company, valued at $16,180,313.76. This trade represents a 2.37% 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. Over the last 90 days, insiders have sold 375,513 shares of company stock worth $23,597,752. Corporate insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in the stock. Vision Retirement LLC increased its holdings in shares of Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after purchasing an additional 317 shares during the period. Harbor Investment Advisory LLC acquired a new stake in Kratos Defense & Security Solutions during the second quarter valued at $25,000. IMG Wealth Management Inc. boosted its stake in shares of Kratos Defense & Security Solutions by 427.0% during the 1st quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock worth $37,000 after acquiring an additional 427 shares in the last quarter. Geneos Wealth Management Inc. lifted its holdings in shares of Kratos Defense & Security Solutions by 333.3% during the first quarter. Geneos Wealth Management Inc. now owns 650 shares of the aerospace company’s stock worth $46,000 after buying an additional 500 shares during the last quarter. Finally, Compass Financial Management LLC acquired a new stake in Kratos Defense & Security Solutions during the second quarter worth $34,000. 75.92% of the stock is currently owned by institutional investors.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: New analyst coverage is bullish. Rothschild & Co. Redburn initiated coverage with a “Buy”/“Strong Buy” rating and a $70 price target, implying substantial upside from recent levels. Rothschild & Co. Redburn Initiates Kratos Defense & Security Solutions at Buy With $70 Price Target
• Positive Sentiment: Approximately $100 million in contracts could strengthen Kratos’s revenue visibility and reinforce demand for its defense, aerospace, and unmanned-systems offerings. Kratos Defense and Security Solutions Stock Gains on USD 100 Million Contracts
• Positive Sentiment: Options activity was unusually high: investors purchased 26,657 call options, roughly 153% above typical daily call volume. This may signal speculative bullish positioning, although options activity does not guarantee a sustained recovery.
• Neutral Sentiment: KTOS reached a 52-week low near $41.72, highlighting continued selling pressure even after the bullish analyst announcements. Kratos Defense and Security Solutions Stock Hits 52-Week Low
• Negative Sentiment: Shares have fallen 21.2% over the past three months. Zacks cited supply-chain risks and Kratos’s relatively low return on equity as factors tempering its growth outlook, despite opportunities in space, cyber, communications, and propulsion. Kratos Defense Drops 21.2% in 3 Months
• Negative Sentiment: Broader sector weakness is weighing on sentiment. Drone and defense peers, including AeroVironment, have also declined sharply, suggesting investors may be reducing exposure across the industry rather than reacting solely to KTOS-specific news.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.