Kratos Defense & Security Solutions (NASDAQ:KTOS) Upgraded to Strong-Buy at Barclays

Barclays upgraded shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) to a strong-buy rating in a research note published on Friday,Zacks reports.

KTOS has been the topic of several other reports. The Goldman Sachs Group decreased their target price on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research note on Tuesday, July 14th. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, July 28th. Piper Sandler raised Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 target price on the stock in a research note on Wednesday, August 5th. BTIG Research increased their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the stock a “buy” rating in a report on Wednesday, August 5th. Finally, Stifel Nicolaus dropped their price target on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Three research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of “Buy” and an average price target of $94.79.

Kratos Defense & Security Solutions Stock Up 1.0%

Shares of NASDAQ:KTOS opened at $42.36 on Friday. Kratos Defense & Security Solutions has a 12-month low of $40.92 and a 12-month high of $134.00. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The stock’s 50-day moving average price is $50.72 and its 200-day moving average price is $55.90. The stock has a market capitalization of $7.95 billion, a P/E ratio of 249.18 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.07. The business had revenue of $458.80 million for the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The business’s quarterly revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. On average, equities analysts anticipate that Kratos Defense & Security Solutions will post 0.57 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $47.83, for a total transaction of $310,895.00. Following the completion of the transaction, the insider owned 175,653 shares of the company’s stock, valued at $8,401,482.99. This trade represents a 3.57% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions 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 transaction, the insider owned 288,111 shares of the company’s stock, valued at $16,180,313.76. The trade was a 2.37% 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. Insiders have sold a total of 375,513 shares of company stock worth $23,597,752 over the last three months. Corporate insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently made changes to their positions in KTOS. Paradigm Capital Management Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions during the second quarter valued at approximately $34,842,000. Bamco Inc. NY purchased a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth $53,746,000. Principal Financial Group Inc. grew its holdings in shares of Kratos Defense & Security Solutions by 48.0% in the first quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company’s stock worth $74,520,000 after acquiring an additional 342,789 shares during the period. Ausbil Investment Management Ltd lifted its holdings in Kratos Defense & Security Solutions by 623.2% in the third quarter. Ausbil Investment Management Ltd now owns 40,339 shares of the aerospace company’s stock valued at $1,722,000 after acquiring an additional 34,761 shares during the period. Finally, Hsbc Holdings PLC boosted its position in Kratos Defense & Security Solutions by 187.7% in the first quarter. Hsbc Holdings PLC now owns 47,566 shares of the aerospace company’s stock worth $3,321,000 after purchasing an additional 31,031 shares during the last quarter. Hedge funds and other institutional investors own 75.92% of the company’s stock.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos demonstrated end-to-end connectivity across a native, multi-vendor 5G NR non-terrestrial network using its OpenSpace fully virtualized satellite ground platform. The milestone supports the company’s positioning in satellite communications and could improve its prospects as operators seek scalable, interoperable 5G services. Kratos Advances 5G NR NTN Ground System Development with Multi-Vendor Connectivity Success
• Positive Sentiment: ARK Invest reportedly added Kratos shares while reducing positions in SpaceX and AMD, reflecting continued institutional interest in defense technology, drones and autonomous warfare. This may reinforce the bullish narrative around KTOS, although the purchases do not directly change the company’s fundamentals. Cathie Wood’s ARK Invest Adds Kratos Defense, AeroVironment Stocks
• Positive Sentiment: Space-cyber expansion combining RF sensing, signal processing, software and cybersecurity could open additional growth opportunities as defense agencies develop emerging space and communications missions. Can Kratos’ Space-Cyber Expansion Unlock New Growth Opportunities?
• Neutral Sentiment: KTOS was described as edging higher while other defense stocks weakened, indicating relative strength but providing no new contract or earnings catalyst. Defense Stocks Market Update
• Neutral Sentiment: Unusually high options volume signals increased trading interest and potentially greater near-term volatility, but it does not establish whether investors are positioned for gains or declines. Kratos Sees Unusually High Options Volume
• Negative Sentiment: Analysts are questioning whether Kratos’s share price is ahead of the cash flow the business can generate. With a reported price-to-earnings ratio near 250 and shares well below their 52-week high, valuation and execution risk remain important headwinds. Is Kratos Getting Too Stretched on Cash Flow?

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense, and commercial applications. Its offerings support unmanned systems, satellite communications, space operations, missile defense, hypersonic programs, launch systems, and command, control, communications, computers, intelligence, surveillance, and reconnaissance (C5ISR) missions.

The company provides unmanned aerial, ground, and maritime systems, including target drones and other autonomous platforms used for testing, training, and operational missions.