Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Up 13.8% – Time to Buy?

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) traded up 13.8% during trading on Thursday . The stock traded as high as $109.80 and last traded at $104.04. 9,574,185 shares traded hands during trading, an increase of 110% from the average session volume of 4,550,187 shares. The stock had previously closed at $91.44.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Political and budget tailwind — media and analyst coverage point to President Trump’s proposed defense spending priorities and public policy pushing contractors to reinvest in production rather than buybacks, which directly supports Kratos’ growth narrative and backlog visibility. Kratos (KTOS) shares skyrocket
• Positive Sentiment: Program win/strategic teaming — Northrop Grumman was awarded the Marine Corps CCA effort that pairs its systems with Kratos’ Valkyrie UAS, validating Kratos’ role in high‑profile manned‑unmanned teaming and potentially increasing program revenue. Northrop Grumman to Rapidly Develop Marine Corps CCA with Kratos’ Valkyrie UAS
• Positive Sentiment: Analyst support and price‑target lift — new coverage and buy ratings (Jones Trading initiation, other recent upgrades) have increased investor conviction and likely attracted fresh inflows. Jones Trading Begins Coverage
• Positive Sentiment: Options and flow — unusually large call‑option activity (roughly 10,959 calls traded) signals short‑term bullish positioning by traders and can amplify upward moves in the stock.
• Positive Sentiment: Contract and program progress — company disclosures and press coverage of new contract wins and program milestones are improving revenue visibility and supporting the growth story. Kratos Applauds Focus on Reinvestment
• Neutral Sentiment: Longer‑term growth projections — analysis (e.g., Seeking Alpha) highlights aggressive organic revenue guidance for 2025–2027 that supports upside but also frames KTOS as a volatility play; the piece is informative but mixed in near‑term trading impact. Trump’s ‘Dream Military’ Is A Game Changer For Kratos
• Neutral Sentiment: Social and media buzz — heightened attention on social platforms, aggregated commentary and AI summaries have increased visibility (some of it speculative), which can fuel momentum but may not reflect fundamentals. QuiverQuant discussion
• Negative Sentiment: Insider selling — CEO and other executives have recently sold sizeable blocks (CEO sales filed 1/6; CFO sold shares), which can be perceived negatively and increase short‑term caution among some investors. CEO SEC Filing CFO sale
• Negative Sentiment: Profitability & valuation risks — despite strong revenue growth, Kratos remains unprofitable with cash‑burn and margin pressure from fixed‑price programs and heavy capex; the stock trades at a very high multiple, amplifying downside risk if execution or margins slip. Seeking Alpha discussion

Analysts Set New Price Targets

KTOS has been the subject of several research reports. Jones Trading began coverage on shares of Kratos Defense & Security Solutions in a research note on Monday. They set a “buy” rating for the company. Robert W. Baird lifted their target price on Kratos Defense & Security Solutions from $70.00 to $87.00 and gave the company an “outperform” rating in a report on Friday, September 26th. Weiss Ratings reissued a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research report on Wednesday, October 8th. Canaccord Genuity Group raised their price objective on Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the stock a “buy” rating in a report on Thursday, October 9th. Finally, B. Riley lowered Kratos Defense & Security Solutions from a “buy” rating to a “neutral” rating and lifted their price objective for the company from $72.00 to $105.00 in a research note on Wednesday, October 8th. One research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $82.53.

Kratos Defense & Security Solutions Stock Up 13.8%

The stock has a market capitalization of $17.57 billion, a price-to-earnings ratio of 800.37 and a beta of 1.09. The firm has a 50-day moving average of $77.37 and a 200 day moving average of $71.97. The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings data on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.12 by $0.02. Kratos Defense & Security Solutions had a net margin of 1.56% and a return on equity of 3.14%. The company had revenue of $347.60 million for the quarter, compared to analyst estimates of $323.01 million. During the same quarter last year, the firm posted $0.11 earnings per share. The business’s quarterly revenue was up 26.0% on a year-over-year basis. On average, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, Director Scott I. Anderson sold 15,401 shares of the company’s stock in a transaction dated Monday, December 15th. The shares were sold at an average price of $74.51, for a total value of $1,147,528.51. Following the completion of the transaction, the director directly owned 66,334 shares of the company’s stock, valued at $4,942,546.34. This represents a 18.84% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CEO Eric M. Demarco sold 200,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, December 1st. The stock was sold at an average price of $74.09, for a total value of $14,818,000.00. Following the sale, the chief executive officer directly owned 1,196,237 shares in the company, valued at approximately $88,629,199.33. The trade was a 14.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 864,865 shares of company stock worth $68,967,762 over the last three months. Insiders own 2.37% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently made changes to their positions in KTOS. Baird Financial Group Inc. increased its stake in shares of Kratos Defense & Security Solutions by 21.4% in the first quarter. Baird Financial Group Inc. now owns 21,552 shares of the aerospace company’s stock worth $640,000 after buying an additional 3,799 shares during the last quarter. Royal Bank of Canada grew its holdings in 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 acquiring an additional 35,098 shares in the last quarter. Amundi bought a new stake in shares of Kratos Defense & Security Solutions in the 1st quarter worth about $791,000. Advisors Asset Management Inc. bought a new stake in shares of Kratos Defense & Security Solutions in the 1st quarter worth about $292,000. Finally, NewEdge Advisors LLC raised its stake in shares of Kratos Defense & Security Solutions by 64.4% in the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock valued at $39,000 after purchasing an additional 515 shares in the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

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.