Citigroup Inc. Decreases Position in Kratos Defense & Security Solutions, Inc. $KTOS

Citigroup Inc. trimmed its stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 40.8% in the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 182,489 shares of the aerospace company’s stock after selling 125,591 shares during the period. Citigroup Inc. owned approximately 0.11% of Kratos Defense & Security Solutions worth $16,674,000 at the end of the most recent reporting period.

Several other large investors have also recently modified their holdings of KTOS. TD Waterhouse Canada Inc. bought a new stake in Kratos Defense & Security Solutions in the second quarter worth $30,000. Rakuten Securities Inc. purchased a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at $31,000. Bayforest Capital Ltd bought a new stake in shares of Kratos Defense & Security Solutions in the 3rd quarter worth about $32,000. Whittier Trust Co. purchased a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth about $38,000. Finally, NewEdge Advisors LLC boosted its stake in shares of 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 worth $39,000 after purchasing an additional 515 shares during the period. Institutional investors own 75.92% of the company’s stock.

Wall Street Analyst Weigh In

Several analysts have issued reports on KTOS shares. B. Riley Financial raised their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the stock a “buy” rating in a research note on Friday, January 9th. KeyCorp increased their price target on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a report on Wednesday, January 28th. Jefferies Financial Group reissued a “hold” rating and set a $85.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, November 6th. Truist Financial set a $135.00 price objective on Kratos Defense & Security Solutions in a research report on Friday, January 9th. Finally, Piper Sandler started coverage on Kratos Defense & Security Solutions in a research report on Wednesday, January 21st. They set a “neutral” rating and a $99.00 target price for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have given a Hold rating to the company. According to MarketBeat, the company currently has a consensus rating of “Moderate Buy” and an average price target of $98.28.

Kratos Defense & Security Solutions Price Performance

KTOS opened at $86.18 on Friday. The company has a market capitalization of $14.68 billion, a price-to-earnings ratio of 662.97 and a beta of 1.09. The company has a current ratio of 4.06, a quick ratio of 3.68 and a debt-to-equity ratio of 0.05. Kratos Defense & Security Solutions, Inc. has a 12-month low of $25.11 and a 12-month high of $134.00. The business’s fifty day simple moving average is $98.13 and its 200-day simple moving average is $85.06.

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

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
• Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
• Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
• Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
• Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
• Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
• Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
• Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
• Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Stacey G. Rock sold 16,568 shares of the stock in a transaction on Monday, January 12th. The stock was sold at an average price of $116.74, for a total transaction of $1,934,148.32. Following the sale, the insider owned 26,487 shares of the company’s stock, valued at approximately $3,092,092.38. This trade represents a 38.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Scott I. Anderson sold 15,401 shares of the business’s stock in a transaction on Monday, December 15th. The stock was 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 approximately $4,942,546.34. The trade was a 18.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 897,907 shares of company stock valued at $74,113,293 over the last quarter. 2.37% of the stock is owned by insiders.

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.