Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading 8.5% Higher – Time to Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price traded up 8.5% on Thursday . The company traded as high as $63.59 and last traded at $63.40. 4,195,582 shares changed hands during trading, a decline of 5% from the average session volume of 4,403,485 shares. The stock had previously closed at $58.43.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos announced/was highlighted for multiple new defense contract wins spanning rocket motors, missile-defense infrastructure, unmanned aircraft, and secure communications, reinforcing its growth outlook and broader international footprint. Kratos Contract Wins Signal Shift Toward Broader Global Defense Role
• Positive Sentiment: Kratos is being viewed as a beneficiary of a defense-budget proposal and expanding Pentagon spending priorities, which can lift expectations for future orders across drones, hypersonics, and related defense systems. Defense Budget Proposal Fuels Kratos Defense & Security Solutions (KTOS) Stock Surge
• Positive Sentiment: Recent articles emphasized Kratos’ roughly $14.3 billion pipeline and expansion across drones, hypersonics, and satellite systems, suggesting continued revenue opportunities beyond the latest quarter. KTOS Stock Declines 6% in a Month: Opportunity or Warning Sign?
• Neutral Sentiment: Post-earnings coverage noted that investors are still evaluating whether the stock’s recent run is justified by earnings estimates and forward guidance rather than just momentum. Why Is Kratos (KTOS) Up 11.2% Since Last Earnings Report?
• Negative Sentiment: CFO Deanna Lund sold 5,000 shares in a pre-arranged Rule 10b5-1 transaction, which can add mild pressure to sentiment even though the sale was planned and relatively small versus her remaining stake. Deanna Lund Sells 5,000 Shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock

Wall Street Analysts Forecast Growth

A number of analysts recently commented on KTOS shares. Canaccord Genuity Group upped their price target on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the company a “buy” rating in a research note on Thursday, May 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Piper Sandler dropped their target price on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. BTIG Research cut their price target on Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating for the company in a report on Thursday, May 7th. Finally, Royal Bank Of Canada reduced their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating for the company in a research report on Thursday, May 7th. Three analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have given a Hold rating to the company’s stock. Based on data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus price target of $96.28.

Kratos Defense & Security Solutions Trading Down 7.7%

The firm’s 50 day moving average is $63.68 and its 200 day moving average is $80.56. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. The company has a market cap of $10.97 billion, a PE ratio of 344.24 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.13 by $0.03. The business had revenue of $371.00 million for the quarter, compared to analysts’ expectations of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The business’s revenue for the quarter was up 22.6% compared to the same quarter last year. During the same period in the prior year, the company posted $0.12 EPS. On average, equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Tuesday, May 26th. The stock was sold at an average price of $57.24, for a total transaction of $400,680.00. Following the completion of the sale, the insider owned 344,090 shares of the company’s stock, valued at approximately $19,695,711.60. This trade represents a 1.99% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Stacey G. Rock sold 4,000 shares of the business’s stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $65.47, for a total value of $261,880.00. Following the transaction, the insider owned 13,896 shares of the company’s stock, valued at approximately $909,771.12. The trade was a 22.35% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 183,564 shares of company stock valued at $12,745,304 in the last ninety days. 1.50% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several institutional investors have recently modified their holdings of the stock. BNP Paribas Financial Markets lifted its holdings in shares of Kratos Defense & Security Solutions by 245.2% during the 4th quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company’s stock worth $45,673,000 after acquiring an additional 427,396 shares during the last quarter. M&T Bank Corp increased its stake in Kratos Defense & Security Solutions by 6,900.4% in the fourth quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company’s stock valued at $13,423,000 after acquiring an additional 174,305 shares during the last quarter. Victory Capital Management Inc. purchased a new stake in Kratos Defense & Security Solutions during the third quarter valued at about $21,013,000. New Age Alpha Advisors LLC raised its position in Kratos Defense & Security Solutions by 435.1% during the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company’s stock valued at $3,265,000 after purchasing an additional 34,973 shares in the last quarter. Finally, JPMorgan Chase & Co. lifted its stake in Kratos Defense & Security Solutions by 93.0% during the third quarter. JPMorgan Chase & Co. now owns 964,973 shares of the aerospace company’s stock worth $88,170,000 after purchasing an additional 465,100 shares during the last quarter. 75.92% of the stock is currently owned by 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.