Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 7.4% – Time to Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shot up 7.4% during trading on Monday. The company traded as high as $38.13 and last traded at $37.69. 6,392,351 shares were traded during mid-day trading, an increase of 45% from the average daily volume of 4,413,960 shares. The stock had previously closed at $35.10.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos won a contract from Gulf Space Technology to supply integrated Q/V/Ka-band gateway and antenna systems for a software-defined satellite. The work complements its development of the customer’s Satellite Operations Center and adds to its space-business opportunities. Contract announcement
• Positive Sentiment: Management raised its 2026 outlook and sees stronger growth in 2027, citing defense orders, hypersonics programs, and expanding drone and engine production. The latest quarter also beat EPS expectations, with revenue up 35.7% year over year. Q3 earnings call highlights
• Positive Sentiment: RBC said Kratos remains positioned to benefit from defense spending, offering support for the growth outlook despite possible budget pressures. RBC view
• Neutral Sentiment: Canaccord lowered its price target to $120 from $135 but maintained a Buy rating, while Guggenheim cut its target to $67 from $74 and also kept a Buy rating. The target cuts are a cautionary signal, though both firms remain positive on the shares. Canaccord target update
• Negative Sentiment: UBS reduced its target to $46 from $60 and shifted to Neutral, signaling less conviction in the stock’s upside. UBS target update
• Negative Sentiment: Recent coverage flags near-term cash-flow pressure, potentially lasting until 2029, and lower return on equity. Those concerns could weigh on sentiment even as bookings, backlog, and growth opportunities remain strong. Q3 earnings call coverage

Analyst Upgrades and Downgrades

Several research firms recently weighed in on KTOS. Oppenheimer started coverage on shares of Kratos Defense & Security Solutions in a research report on Thursday, October 22nd. They set an “outperform” rating and a $50.00 price objective for the company. KeyCorp decreased their target price on shares of Kratos Defense & Security Solutions from $130.00 to $75.00 and set an “overweight” rating on the stock in a report on Monday, November 2nd. Jefferies Financial Group restated a “buy” rating and issued a $50.00 target price on shares of Kratos Defense & Security Solutions in a research report on Monday. Canaccord Genuity Group cut their price target on shares of Kratos Defense & Security Solutions from $135.00 to $120.00 and set a “buy” rating for the company in a report on Monday. Finally, Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Monday, October 19th. Two research analysts have rated the stock with a Strong Buy rating, twenty-two have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Kratos Defense & Security Solutions has an average rating of “Moderate Buy” and an average target price of $77.90.

Kratos Defense & Security Solutions Stock Performance

The company has a 50 day moving average price of $43.48 and a 200-day moving average price of $62.56. The company has a current ratio of 5.42, a quick ratio of 4.87 and a debt-to-equity ratio of 0.05. The company has a market cap of $7.08 billion, a P/E ratio of 314.08 and a beta of 1.18.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Thursday, November 5th. The aerospace company reported $0.24 EPS for the quarter, topping analysts’ consensus estimates of $0.21 by $0.03. Kratos Defense & Security Solutions had a return on equity of 3.18% and a net margin of 1.34%. The company had revenue of $471.80 million during the quarter, compared to analysts’ expectations of $471.40 million. During the same quarter in the previous year, the firm earned $0.14 EPS. Kratos Defense & Security Solutions’s revenue was up 35.7% on a year-over-year basis. On average, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current fiscal year.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 7,000 shares of the business’s stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $48.78, for a total transaction of $341,460.00. Following the completion of the transaction, the chief financial officer owned 273,511 shares of the company’s stock, valued at approximately $13,341,866.58. The trade was a 2.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing 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, CEO Eric M. Demarco sold 300,000 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the transaction, the chief executive officer directly owned 761,632 shares of the company’s stock, valued at $48,995,786.56. This trade represents a 28.26% decrease in their position. The SEC filing for this sale provides additional information. 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. Company insiders own 1.50% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in KTOS. Bank of New York Mellon Corp increased its holdings in shares of Kratos Defense & Security Solutions by 12.2% during the first quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock worth $106,893,000 after buying an additional 164,607 shares in the last quarter. B&D White Capital Company LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 21,357.3% during the 3rd quarter. B&D White Capital Company LLC now owns 1,823,870 shares of the aerospace company’s stock valued at $77,861,000 after acquiring an additional 1,815,370 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in shares of Kratos Defense & Security Solutions by 48.0% during the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock valued at $74,520,000 after acquiring an additional 342,789 shares in the last quarter. Sumitomo Mitsui Trust Group Inc. boosted its holdings in shares of Kratos Defense & Security Solutions by 16.7% during the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 1,664,120 shares of the aerospace company’s stock valued at $71,041,000 after acquiring an additional 238,611 shares in the last quarter. Finally, Bamco Inc. NY bought a new stake in Kratos Defense & Security Solutions during the 2nd quarter worth $53,746,000. Institutional investors own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions is a defense technology company that develops products and services for U.S. government agencies, national security organizations, and allied governments. Its work spans unmanned systems, satellite communications, microwave electronics, command-and-control systems, and training and simulation.

The company’s offerings include unmanned aerial vehicles and target drones, as well as systems and components used in space and satellite communications and other defense applications.