Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 3.1% – Should You Sell?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) fell 3.1% during trading on Friday . The company traded as low as $51.37 and last traded at $52.00. Approximately 1,962,504 shares were traded during trading, a decline of 55% from the average daily volume of 4,384,739 shares. The stock had previously closed at $53.69.

Analyst Ratings Changes

Several research firms recently issued reports on KTOS. Citizens Jmp decreased their target price on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating for the company in a research note on Friday, May 8th. Wedbush began coverage on shares of Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They set an “outperform” rating and a $85.00 price target on the stock. BNP Paribas Exane lifted their price objective on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Piper Sandler upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a research report on Wednesday, August 5th. Finally, The Goldman Sachs Group dropped their target price on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research report on Tuesday, July 14th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average target price of $99.47.

Kratos Defense & Security Solutions Stock Down 3.1%

The stock has a market cap of $9.76 billion, a PE ratio of 305.88 and a beta of 1.08. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The business has a 50-day moving average price of $52.48 and a 200-day moving average price of $65.34.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same quarter last year, the company earned $0.11 EPS. As a group, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, CEO Eric M. Demarco sold 300,000 shares of the firm’s stock in a transaction dated Friday, August 14th. The shares were sold at an average price of $64.33, for a total value of $19,299,000.00. Following the transaction, the chief executive officer directly owned 761,632 shares of the company’s stock, valued at approximately $48,995,786.56. This trade represents a 28.26% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 26,500 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $63.25, for a total value of $1,676,125.00. Following the completion of the sale, the insider owned 182,084 shares in the company, valued at approximately $11,516,813. The trade was a 12.70% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 433,688 shares of company stock valued at $26,990,882. Corporate insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in the company. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth approximately $989,000. California State Teachers Retirement System raised its stake in Kratos Defense & Security Solutions by 5,429.2% in the 2nd quarter. California State Teachers Retirement System now owns 10,840,811 shares of the aerospace company’s stock valued at $540,523,000 after purchasing an additional 10,644,746 shares during the last quarter. Washington Trust Advisors Inc. purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter valued at $794,000. Operose Advisors LLC purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter valued at $41,000. Finally, Compass Financial Management LLC acquired a new stake in Kratos Defense & Security Solutions during the 2nd quarter worth $34,000. Hedge funds and other institutional investors own 75.92% of the company’s stock.

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.