Kratos Defense & Security Solutions (NASDAQ:KTOS) Price Target Cut to $65.00 by Analysts at BTIG Research

Kratos Defense & Security Solutions (NASDAQ:KTOS) had its price target decreased by BTIG Research from $104.00 to $65.00 in a research report released on Friday,Benzinga reports. BTIG Research currently has a buy rating on the aerospace company’s stock.

Other analysts have also recently issued research reports about the company. B. Riley Financial reduced their price target on Kratos Defense & Security Solutions from $128.00 to $91.00 and set a “buy” rating for the company in a research report on Friday, October 30th. BNP Paribas Exane raised Kratos Defense & Security Solutions from a “neutral” rating to an “outperform” rating in a research report on Thursday, October 8th. Citizens Jmp cut their price objective on Kratos Defense & Security Solutions from $105.00 to $70.00 and set a “market outperform” rating for the company in a research note on Monday, October 19th. Stifel Nicolaus cut their price objective on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Finally, Oppenheimer assumed coverage on shares of Kratos Defense & Security Solutions in a report on Thursday, October 22nd. They issued an “outperform” rating and a $50.00 target price for the company. Three investment analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $81.70.

Kratos Defense & Security Solutions Stock Performance

KTOS stock traded up $1.71 during midday trading on Friday, reaching $35.10. 8,006,154 shares of the company’s stock traded hands, compared to its average volume of 4,377,130. Kratos Defense & Security Solutions has a 52-week low of $31.57 and a 52-week high of $134.00. The stock has a market cap of $6.59 billion, a P/E ratio of 292.50 and a beta of 1.18. 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 stock’s 50-day moving average is $43.48 and its 200 day moving average is $62.56.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Thursday, November 5th. The aerospace company reported $0.24 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm had revenue of $471.80 million during the quarter, compared to the consensus estimate of $471.40 million. During the same quarter in the previous year, the firm posted $0.14 EPS. The company’s revenue for the quarter was up 35.7% compared to the same quarter last year. As a group, analysts anticipate that Kratos Defense & Security Solutions will post 0.59 EPS for the current year.

Insiders Place Their Bets

In related news, insider Steven 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 of the company’s stock, valued at approximately $16,180,313.76. The trade was a 2.37% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna Lund sold 7,000 shares of the business’s stock in a transaction that occurred on Monday, October 26th. The stock was sold at an average price of $40.00, for a total value of $280,000.00. Following the completion of the transaction, the chief financial officer directly owned 266,740 shares in the company, valued at approximately $10,669,600. This represents a 2.56% 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. Insiders have sold a total of 373,013 shares of company stock worth $23,340,582 in the last three months. 1.50% of the stock is owned by company insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds have recently modified their holdings of the stock. Channel Wealth LLC purchased a new position in Kratos Defense & Security Solutions during the third quarter valued at $307,000. Diversified Trust Co increased its holdings in Kratos Defense & Security Solutions by 156.2% in the 3rd quarter. Diversified Trust Co now owns 13,972 shares of the aerospace company’s stock valued at $596,000 after acquiring an additional 8,518 shares during the last quarter. Russell Investments Group Ltd. lifted its stake in Kratos Defense & Security Solutions by 2.6% in the 3rd quarter. Russell Investments Group Ltd. now owns 62,405 shares of the aerospace company’s stock worth $2,664,000 after purchasing an additional 1,553 shares in the last quarter. CENTRAL TRUST Co lifted its stake in Kratos Defense & Security Solutions by 10.0% in the 3rd quarter. CENTRAL TRUST Co now owns 7,126 shares of the aerospace company’s stock worth $304,000 after purchasing an additional 649 shares in the last quarter. Finally, Fifth Third Bancorp lifted its stake in Kratos Defense & Security Solutions by 57.2% in the 3rd quarter. Fifth Third Bancorp now owns 62,654 shares of the aerospace company’s stock worth $2,675,000 after purchasing an additional 22,792 shares in the last quarter. Hedge funds and other institutional investors own 75.92% of the company’s stock.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Third-quarter adjusted EPS was $0.24, above the $0.21 consensus, while revenue rose 35.7% year over year to $471.8 million. Government Solutions growth was a key contributor. Kratos Defense Q3 Earnings Outpace Estimates, Revenues Increase Y/Y
• Positive Sentiment: Orders exceeded sales, with a 2.2-to-1 book-to-bill ratio and backlog reported at $2.65 billion—supportive of future revenue. Fourth-quarter revenue guidance has a $495 million midpoint, slightly above analyst expectations, and the company maintained a roughly $1.8 billion full-year revenue outlook. Kratos Sales Up 36%, Free Cash Flow Negative: Rapid Earnings Reaction
• Neutral Sentiment: Call-option trading activity was unusually high, up 44% versus its average volume. This may reflect increased investor interest but does not establish the direction of future performance.
• Negative Sentiment: Despite adjusted earnings growth, Kratos reported a small GAAP net loss, negative free cash flow, and a GAAP operating loss. These issues raise questions about near-term profitability and cash conversion. Kratos Q3 2026 Earnings Call Transcript
• Negative Sentiment: BTIG cut its price target to $65 from $104, although it retained a Buy rating. The reduction signals a more cautious valuation view even as the firm sees upside potential. BTIG Research ratings

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.