Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 4.2% – Should You Sell?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price traded down 4.2% during trading on Friday . The stock traded as low as $47.22 and last traded at $47.35. 2,832,962 shares changed hands during trading, a decline of 37% from the average session volume of 4,510,804 shares. The stock had previously closed at $49.44.

Analyst Upgrades and Downgrades

A number of equities analysts recently weighed in on the stock. UBS Group reiterated a “neutral” rating and issued a $82.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Truist Financial upgraded shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research report on Friday, May 1st. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and reduced their target price for the stock from $99.00 to $82.00 in a research note on Friday, June 12th. Wedbush began coverage on shares of Kratos Defense & Security Solutions in a report on Tuesday, June 30th. They issued an “outperform” rating and a $85.00 target price on the stock. Finally, Clear Str upgraded shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. Three analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have issued a Hold rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average target price of $101.29.

Kratos Defense & Security Solutions Stock Performance

The stock’s 50-day moving average price is $53.66 and its 200-day moving average price is $74.93. The company has a market capitalization of $8.88 billion, a price-to-earnings ratio of 278.53 and a beta of 1.07. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts’ consensus estimates 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 return on equity of 2.82% and a net margin of 2.08%.The company’s revenue was up 22.6% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.12 EPS. As a group, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.

Insider Buying and Selling

In related news, insider David M. Carter sold 4,000 shares of the business’s stock in a transaction dated Wednesday, July 8th. The shares were sold at an average price of $50.45, for a total value of $201,800.00. Following the sale, the insider directly owned 66,238 shares in the company, valued at $3,341,707.10. The trade was a 5.69% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $52.85, for a total transaction of $264,250.00. Following the completion of the sale, the chief financial officer directly owned 285,405 shares in the company, valued at approximately $15,083,654.25. The trade was a 1.72% 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 148,036 shares of company stock valued at $8,455,857 in the last three months. 1.50% of the stock is owned by insiders.

Institutional Trading of Kratos Defense & Security Solutions

Several large investors have recently modified their holdings of the business. Royal Bank of Canada raised its position in shares of Kratos Defense & Security Solutions by 22.6% during the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after purchasing an additional 35,098 shares during the last quarter. Amundi acquired a new stake in Kratos Defense & Security Solutions during the 1st quarter valued at $791,000. NewEdge Advisors LLC increased its position in Kratos Defense & Security Solutions by 64.4% during the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock worth $39,000 after buying an additional 515 shares in the last quarter. Jones Financial Companies Lllp increased its position in Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock worth $108,000 after buying an additional 2,286 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Kratos Defense & Security Solutions by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock worth $11,686,000 after acquiring an additional 41,265 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

About Kratos Defense & Security Solutions

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.