Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 7.4% – Should You Sell?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price was down 7.4% on Tuesday . The company traded as low as $75.52 and last traded at $77.49. Approximately 4,497,880 shares traded hands during trading, an increase of 2% from the average daily volume of 4,395,790 shares. The stock had previously closed at $83.69.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos won a firm/funded base plus options contract from NSWC Port Hueneme for production/delivery of up to 36 Oriole™ solid rocket motors and 3 thrust-vector-control kits (total award value cited up to ~$49M including TVC options), which adds near‑term funded backlog and validates Kratos’ propulsion execution. Kratos Awarded $49 Million NSWC PHD Contract for Oriole™ Rocket Motor and Thrust Vector Control Systems to Support Navy Missile and Test Programs
• Positive Sentiment: Analyst and industry pieces highlight Kratos’ growing propulsion-systems business (compact, cost‑efficient engines for drones, missiles and next‑gen platforms) as a scalable revenue driver—supporting medium-term growth expectations if demand persists. Can Kratos Defense’s Propulsion Systems Business Drive Growth?
• Positive Sentiment: Market attention from high‑profile endorsements (Jim Cramer spotlight) has helped lift sentiment and contributed to the stock’s large YTD/1‑year gains, increasing retail and momentum interest. Kratos (KTOS) Stock Has Surged Since Jim Cramer Said He Liked “the Story Very Much”
• Neutral Sentiment: Kratos added David King to its board (Audit Committee member) — a governance/experience upgrade that may marginally improve oversight but is not an immediate revenue driver. Kratos Announces Appointment of David King to Board of Directors
• Neutral Sentiment: Options-trader commentary is bullish on buying short-term dips, reflecting speculative interest but not guaranteed directional support. Defense Stock Worth Watching for Bullish Options Traders
• Negative Sentiment: Shares have pulled back since the company’s recent quarterly report; analyses note the stock is down materially from recent highs and investors are re‑pricing based on near‑term growth/earnings visibility despite an EPS/revenue beat last quarter. Why Is Kratos (KTOS) Down 14.6% Since Last Earnings Report?
• Negative Sentiment: Short interest has increased in March (notable number of shares reported shorted earlier in the month), which can add downside pressure and volatility if sentiment shifts or if additional selling occurs. Defense Stock Worth Watching for Bullish Options Traders

Wall Street Analyst Weigh In

A number of analysts have recently commented on the stock. Noble Financial reissued an “outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Piper Sandler started coverage on Kratos Defense & Security Solutions in a research note on Wednesday, January 21st. They set a “neutral” rating and a $99.00 price objective for the company. Stifel Nicolaus raised their target price on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a “buy” rating in a research report on Tuesday, January 13th. Truist Financial set a $135.00 price target on Kratos Defense & Security Solutions in a research report on Friday, January 9th. Finally, Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, January 22nd. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $98.28.

Kratos Defense & Security Solutions Price Performance

The firm has a market capitalization of $14.17 billion, a PE ratio of 583.58 and a beta of 1.12. The stock’s 50 day simple moving average is $97.12 and its two-hundred day simple moving average is $87.88. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The business had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. During the same period in the prior year, the business earned $0.13 earnings per share. The business’s revenue was up 21.9% compared to the same quarter last year. On average, sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, Director Scott I. Anderson sold 15,000 shares of the firm’s stock in a transaction on Monday, March 16th. The stock was sold at an average price of $89.11, for a total value of $1,336,650.00. Following the completion of the sale, the director directly owned 51,334 shares of the company’s stock, valued at $4,574,372.74. This trade represents a 22.61% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Scot B. Jarvis sold 5,000 shares of Kratos Defense & Security Solutions stock in a transaction on Thursday, March 12th. The stock was sold at an average price of $88.60, for a total value of $443,000.00. Following the transaction, the director owned 85,417 shares in the company, valued at approximately $7,567,946.20. This represents a 5.53% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 371,500 shares of company stock worth $34,664,848 over the last quarter. Corporate insiders own 2.37% of the company’s stock.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently bought and sold shares of the company. Alliancebernstein L.P. raised its position in shares of Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock valued at $247,409,000 after buying an additional 2,525,921 shares during the period. Corient Private Wealth LLC lifted its holdings in Kratos Defense & Security Solutions by 7,701.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company’s stock valued at $120,966,000 after acquiring an additional 1,573,123 shares during the last quarter. Norges Bank purchased a new position in Kratos Defense & Security Solutions in the fourth quarter worth approximately $104,807,000. Westfield Capital Management Co. LP purchased a new position in Kratos Defense & Security Solutions in the third quarter worth approximately $91,901,000. Finally, First Trust Advisors LP increased its stake in Kratos Defense & Security Solutions by 29.5% during the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock worth $280,402,000 after acquiring an additional 698,778 shares during the last quarter. 75.92% of the stock is currently 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.