Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 1.2% – Should You Sell?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was down 1.2% during trading on Tuesday . The company traded as low as $55.01 and last traded at $56.34. 3,123,906 shares were traded during mid-day trading, a decline of 28% from the average daily volume of 4,341,019 shares. The stock had previously closed at $57.02.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos reported strong momentum in its Defense Rocket Systems business, with Q1 2026 revenue jumping nearly 46% as demand for missiles and propulsion systems increased. Can Kratos Defense Become a Major Beneficiary of Rising Missile Demand?
• Positive Sentiment: The company also completed a cross-country autonomous tractor-trailer deployment supporting NASCAR logistics, highlighting progress in its autonomy and unmanned systems capabilities. Kratos Completes Cross-Country Autonomous Tractor-Trailer Deployment Supporting NASCAR Race Logistics
• Positive Sentiment: Analyst sentiment remains constructive overall, with the consensus still at “Moderate Buy,” suggesting Wall Street continues to see upside potential in KTOS. Kratos Defense & Security Solutions stock page
• Neutral Sentiment: Kratos’ latest earnings report beat expectations, but the market appears focused more on near-term trading flows than on the strong revenue and EPS results. Kratos Defense & Security Solutions stock page
• Negative Sentiment: Recent insider selling by SVP Marie Mendoza and another executive has likely added pressure to the stock, even though the trades were made under pre-arranged 10b5-1 plans. Marie Mendoza Sells 1,500 Shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock
• Negative Sentiment: One article suggests the stock is also fading as enthusiasm around war-driven missile and drone demand cools now that the Iran conflict has eased, removing a short-term catalyst. Why Kratos Defense Stock Dropped Today

Wall Street Analysts Forecast Growth

KTOS has been the subject of several recent analyst reports. Clear Str raised shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research report on Wednesday, April 29th. Royal Bank Of Canada reduced their price target on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. BNP Paribas Exane boosted their price objective on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. Cantor Fitzgerald reissued an “overweight” rating and set a $115.00 target price on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Finally, Piper Sandler decreased their price target on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating for the company in a research note on Thursday, May 7th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have given a Buy rating and four have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $101.35.

Kratos Defense & Security Solutions Trading Down 3.5%

The company has a market cap of $10.17 billion, a price-to-earnings ratio of 318.88 and a beta of 1.04. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The firm’s 50-day moving average price is $61.58 and its 200 day moving average price is $79.77.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings data on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, beating the consensus estimate of $0.13 by $0.03. The company had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. Kratos Defense & Security Solutions’s revenue for the quarter was up 22.6% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.12 EPS. As a group, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current year.

Insider Activity

In other news, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction dated Wednesday, April 15th. The shares were sold at an average price of $74.72, for a total transaction of $485,680.00. Following the transaction, the insider owned 227,898 shares of the company’s stock, valued at $17,028,538.56. This represents a 2.77% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director William A. Hoglund sold 30,500 shares of the firm’s stock in a transaction dated Wednesday, April 1st. The shares were sold at an average price of $71.19, for a total value of $2,171,295.00. Following the completion of the sale, the director owned 252,500 shares of the company’s stock, valued at approximately $17,975,475. This represents a 10.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 196,278 shares of company stock valued at $12,428,868. Corporate insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently added to or reduced their stakes in the company. Royal Bank of Canada lifted its holdings in shares of Kratos Defense & Security Solutions by 22.6% in the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after purchasing an additional 35,098 shares in the last quarter. Amundi acquired a new stake in Kratos Defense & Security Solutions in the 1st quarter valued at $791,000. NewEdge Advisors LLC increased its stake in Kratos Defense & Security Solutions by 64.4% during 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. Jones Financial Companies Lllp raised its holdings in Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock worth $108,000 after buying an additional 2,286 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in Kratos Defense & Security Solutions by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock worth $11,686,000 after buying an additional 41,265 shares during the last quarter. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.