Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Up 9.3% – Should You Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price rose 9.3% during mid-day trading on Friday . The company traded as high as $115.45 and last traded at $113.70. Approximately 6,033,680 shares traded hands during mid-day trading, an increase of 26% from the average daily volume of 4,803,142 shares. The stock had previously closed at $104.04.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Northrop Grumman selected Kratos’ Valkyrie UAS to support the Marine Corps’ Collaborative Combat Aircraft program — a strategic, high‑visibility contract that showcases Kratos’ unmanned systems capability and could drive multi‑year revenue. Northrop Grumman to Rapidly Develop Marine Corps CCA with Kratos’ Valkyrie UAS
• Positive Sentiment: Kratos publicly backed President Trump’s emphasis on reinvestment in defense (over buybacks), aligning the company with potential policy tailwinds and larger defense budgets. Kratos Applauds Focus on Reinvestment to Strengthen Defense Readiness
• Positive Sentiment: Analyst momentum and buy ratings (including a recent Jones Research buy and $150 target cited in coverage) plus institutional buying have amplified bullish investor sentiment. Kratos Defense & Security Solutions Stock (KTOS) Opinions on Recent Price Surge and Analyst Rating
• Positive Sentiment: Unusually large options activity: elevated call buying indicates speculative bullish positioning that can amplify intraday moves. (No single article link available for the trade alert.)
• Neutral Sentiment: Zacks notes KTOS has jumped ~35% in a month on contract wins and unmanned system demand but warns weaker ROIC and sector risks complicate optimal entry timing. Kratos Defense Stock Rises 35.3% in a Month: Here’s How to Play
• Neutral Sentiment: Coverage pieces (Seeking Alpha / Yahoo) highlight strong revenue growth guidance but reiterate that Kratos remains unprofitable with cash burn and margin pressure — important when weighing valuation. Trump’s ‘Dream Military’ Is A Game Changer For Kratos: My Volatility Playbook
• Negative Sentiment: Heavy insider selling: disclosure and data show numerous executive sales over recent months (CEO and other senior officers have sold significant positions), which can concern investors about timing and dilution. Kratos Defense & Security Solutions Stock (KTOS) Opinions on Recent Price Surge and Analyst Rating
• Negative Sentiment: Recent SEC/filing reports show specific large insider sales (e.g., CEO sale in the millions), reinforcing near‑term selling pressure risk. Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CEO Sells $17,306,585.72 in Stock

Analysts Set New Price Targets

A number of equities research analysts have weighed in on KTOS shares. Jefferies Financial Group reiterated a “hold” rating and issued a $85.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, November 6th. JMP Securities increased their target price on shares of Kratos Defense & Security Solutions from $70.00 to $105.00 and gave the stock a “market outperform” rating in a research note on Thursday, October 2nd. BNP Paribas Exane assumed coverage on shares of Kratos Defense & Security Solutions in a report on Tuesday, November 18th. They issued a “neutral” rating and a $80.00 price target for the company. Jones Trading assumed coverage on shares of Kratos Defense & Security Solutions in a research note on Monday. They issued a “buy” rating for the company. Finally, BNP Paribas set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, November 18th. One research analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $84.47.

Kratos Defense & Security Solutions Stock Performance

The stock has a market cap of $19.20 billion, a price-to-earnings ratio of 874.68 and a beta of 1.09. The company’s fifty day simple moving average is $77.68 and its two-hundred day simple moving average is $72.20. The company has a debt-to-equity ratio of 0.04, a current ratio of 4.30 and a quick ratio of 3.68.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Tuesday, November 4th. The aerospace company reported $0.14 EPS for the quarter, topping the consensus estimate of $0.12 by $0.02. Kratos Defense & Security Solutions had a net margin of 1.56% and a return on equity of 3.14%. The company had revenue of $347.60 million during the quarter, compared to the consensus estimate of $323.01 million. During the same period in the previous year, the firm posted $0.11 earnings per share. The firm’s revenue for the quarter was up 26.0% on a year-over-year basis. On average, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current year.

Insiders Place Their Bets

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 30,000 shares of the business’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $74.08, for a total value of $2,222,400.00. Following the transaction, the chief financial officer directly owned 273,285 shares in the company, valued at $20,244,952.80. The trade was a 9.89% 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. Also, insider Jonah Adelman sold 30,000 shares of the stock in a transaction on Tuesday, November 25th. The shares were sold at an average price of $74.80, for a total value of $2,244,000.00. Following the transaction, the insider directly owned 9,348 shares of the company’s stock, valued at approximately $699,230.40. This trade represents a 76.24% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders have sold 864,865 shares of company stock valued at $68,967,762. 2.37% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several institutional investors have recently added to or reduced their stakes in KTOS. Appleton Partners Inc. MA increased its stake in shares of Kratos Defense & Security Solutions by 8.3% in the fourth quarter. Appleton Partners Inc. MA now owns 148,287 shares of the aerospace company’s stock worth $11,256,000 after purchasing an additional 11,424 shares in the last quarter. SG Americas Securities LLC lifted its stake in shares of Kratos Defense & Security Solutions by 152.4% during the 4th quarter. SG Americas Securities LLC now owns 91,486 shares of the aerospace company’s stock valued at $6,945,000 after buying an additional 55,241 shares in the last quarter. Assenagon Asset Management S.A. bought a new position in Kratos Defense & Security Solutions in the 4th quarter worth approximately $3,806,000. Parisi Gray Wealth Management grew its stake in Kratos Defense & Security Solutions by 36.7% in the 4th quarter. Parisi Gray Wealth Management now owns 4,324 shares of the aerospace company’s stock valued at $328,000 after buying an additional 1,162 shares in the last quarter. Finally, Aventura Private Wealth LLC bought a new stake in Kratos Defense & Security Solutions during the 4th quarter valued at $121,000. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Company Profile

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.