Kratos Defense & Security Solutions Sees Unusually High Options Volume (NASDAQ:KTOS)

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was the recipient of some unusual options trading activity on Friday. Stock investors acquired 17,897 call options on the company. This is an increase of 44% compared to the typical daily volume of 12,452 call options.

Insiders Place Their Bets

In related news, CFO Deanna Lund sold 7,000 shares of the stock in a transaction on Monday, September 21st. The stock was sold at an average price of $48.78, for a total value of $341,460.00. Following the completion of the transaction, the chief financial officer directly owned 273,511 shares of the company’s stock, valued at approximately $13,341,866.58. This represents a 2.50% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Fendley sold 7,000 shares of the firm’s stock in a transaction on Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the completion of the transaction, the insider owned 288,111 shares in the company, valued at $16,180,313.76. The trade was a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 373,013 shares of company stock valued at $23,340,582. 1.50% of the stock is owned by corporate insiders.

Institutional Trading of Kratos Defense & Security Solutions

Hedge funds and other institutional investors have recently made changes to their positions in the stock. Harbor Investment Advisory LLC purchased a new position in Kratos Defense & Security Solutions during the second quarter worth about $25,000. Vision Retirement LLC lifted its position in Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock valued at $30,000 after buying an additional 317 shares in the last quarter. Balance Wealth Partners LLC acquired a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter valued at $30,000. Provenance Wealth Advisors LLC boosted its position in shares of Kratos Defense & Security Solutions by 128.9% in the third quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock worth $32,000 after buying an additional 419 shares during the period. Finally, Compass Financial Management LLC purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $34,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos reported Q3 revenue of $471.8 million, up 35.7% year over year, and adjusted earnings of $0.24 per share, beating the $0.21 consensus. Its $1.037 billion in bookings resulted in a 2.2-to-1 book-to-bill ratio, lifting backlog to $2.65 billion. Kratos Reports Third Quarter 2026 Financial Results
• Positive Sentiment: Q4 revenue guidance of $480 million to $510 million has a midpoint slightly above analysts’ expectations. The company also highlighted a ramp in hypersonics activity, supporting the growth outlook. Kratos Q3 2026 Earnings Call Transcript
• Negative Sentiment: Despite adjusted earnings growth, free cash flow was negative and GAAP operating income turned to a loss; Kratos also reported a small net loss. These results raise questions about the quality and cash conversion of its growth. Kratos Sales Up 36%, Free Cash Flow Negative
• Negative Sentiment: BTIG cut its price target to $65 from $104, though it maintained a Buy rating. The reduction signals a more cautious valuation view even as the analyst remains bullish. BTIG Research Ratings

Kratos Defense & Security Solutions Stock Performance

KTOS stock traded up $0.68 during trading on Friday, hitting $34.07. The company had a trading volume of 3,522,707 shares, compared to its average volume of 4,381,687. Kratos Defense & Security Solutions has a 1-year low of $31.57 and a 1-year high of $134.00. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04. The firm has a 50-day moving average price of $43.85 and a 200-day moving average price of $63.03. The firm has a market cap of $6.40 billion, a PE ratio of 201.12 and a beta of 1.18.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings results on Thursday, November 5th. The aerospace company reported $0.24 earnings per share for the quarter, topping the consensus estimate of $0.21 by $0.03. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The firm had revenue of $471.80 million during the quarter, compared to the consensus estimate of $471.40 million. During the same period last year, the company earned $0.14 earnings per share. The company’s revenue for the quarter was up 35.7% on a year-over-year basis. On average, analysts expect that Kratos Defense & Security Solutions will post 0.59 earnings per share for the current year.

Wall Street Analyst Weigh In

KTOS has been the subject of several research reports. Canaccord Genuity Group upped their price objective on shares of Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a “buy” rating in a research note on Wednesday, August 5th. Oppenheimer initiated coverage on shares of Kratos Defense & Security Solutions in a report on Thursday, October 22nd. They issued an “outperform” rating and a $50.00 price objective on the stock. Zacks Research upgraded Kratos Defense & Security Solutions from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 23rd. Piper Sandler lowered their price objective on shares of Kratos Defense & Security Solutions from $75.00 to $61.00 and set an “overweight” rating for the company in a research note on Friday, October 23rd. Finally, KeyCorp lowered their target price on Kratos Defense & Security Solutions from $130.00 to $75.00 and set an “overweight” rating for the company in a research note on Monday. Three analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the company’s stock. According to MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of “Moderate Buy” and a consensus price target of $81.70.

About Kratos Defense & Security Solutions

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.