Arete Wealth Advisors LLC Takes Position in Kratos Defense & Security Solutions, Inc. $KTOS

Arete Wealth Advisors LLC acquired a new stake in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) during the third quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The institutional investor acquired 16,413 shares of the aerospace company’s stock, valued at approximately $1,500,000.

Several other institutional investors and hedge funds have also recently added to or reduced their stakes in KTOS. TD Waterhouse Canada Inc. acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at approximately $30,000. Rakuten Securities Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the second quarter worth approximately $31,000. Bayforest Capital Ltd bought a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. Caitlin John LLC acquired a new stake in shares of Kratos Defense & Security Solutions in the third quarter worth $32,000. Finally, Accredited Wealth Management LLC increased its position in Kratos Defense & Security Solutions by 193.5% during the third quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company’s stock worth $37,000 after acquiring an additional 269 shares during the period. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Price Performance

Kratos Defense & Security Solutions stock opened at $86.18 on Monday. The business has a 50 day simple moving average of $98.13 and a 200 day simple moving average of $85.28. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.46. The company has a market capitalization of $14.68 billion, a PE ratio of 662.97 and a beta of 1.12. Kratos Defense & Security Solutions, Inc. has a one year low of $25.11 and a one year high of $134.00.

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 (EPS) for the quarter, topping the consensus estimate 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 firm 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 company posted $0.13 earnings per share. The business’s revenue for the quarter 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 fiscal year.

Wall Street Analyst Weigh In

KTOS has been the topic of several research analyst reports. BTIG Research raised their price target on shares of Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the stock a “buy” rating in a research report on Tuesday, February 24th. Cantor Fitzgerald reiterated an “overweight” rating and issued a $115.00 target price on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the stock a “buy” rating in a research report on Tuesday, February 24th. BNP Paribas Exane set a $80.00 price target on Kratos Defense & Security Solutions in a report on Tuesday, November 18th. Finally, Stifel Nicolaus lifted their price objective on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $98.28.

More Kratos Defense & Security Solutions News

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

In other news, insider Stacey G. Rock sold 16,568 shares of the business’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $116.74, for a total value of $1,934,148.32. Following the transaction, the insider directly owned 26,487 shares of the company’s stock, valued at $3,092,092.38. The trade was a 38.48% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Eric M. Demarco sold 200,000 shares of the stock in a transaction that occurred on Monday, December 22nd. The stock was sold at an average price of $80.53, for a total value of $16,106,000.00. Following the sale, the chief executive officer owned 796,237 shares in the company, valued at approximately $64,120,965.61. This trade represents a 20.08% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 582,907 shares of company stock worth $50,754,943 over the last ninety days. Corporate insiders own 2.37% of the company’s stock.

About Kratos Defense & Security Solutions

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.