Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Gap Up After Analyst Upgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) gapped up prior to trading on Monday after Jefferies Financial Group upgraded the stock from a hold rating to a buy rating. The stock had previously closed at $67.31, but opened at $71.13. Jefferies Financial Group now has a $85.00 price target on the stock. Kratos Defense & Security Solutions shares last traded at $72.25, with a volume of 1,052,600 shares changing hands.

Several other research firms have also recently issued reports on KTOS. Canaccord Genuity Group upped their price target on Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a “buy” rating in a report on Tuesday, February 24th. Noble Financial reissued an “outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Citizens Jmp boosted their target price on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a research note on Monday, January 12th. UBS Group started coverage on shares of Kratos Defense & Security Solutions in a research note on Wednesday, February 18th. They set a “neutral” rating and a $79.00 target price on the stock. Finally, The Goldman Sachs Group boosted their target price on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $98.28.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, Director Scot B. Jarvis sold 5,000 shares of the business’s stock in a transaction on Thursday, March 26th. The shares were sold at an average price of $78.14, for a total transaction of $390,700.00. Following the sale, the director directly owned 80,417 shares of the company’s stock, valued at $6,283,784.38. The trade was a 5.85% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, insider Steven S. Fendley sold 7,000 shares of the business’s stock in a transaction on Monday, March 30th. The shares were sold at an average price of $69.59, for a total transaction of $487,130.00. Following the sale, the insider directly owned 358,023 shares in the company, valued at approximately $24,914,820.57. This trade represents a 1.92% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 211,000 shares of company stock worth $19,390,027. Insiders own 2.37% of the company’s stock.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Jefferies upgraded KTOS from Hold to Buy and reiterated an $85 price target, citing stronger growth prospects in Kratos’ tactical systems and unmanned platforms. This upgrade is the main catalyst pushing the stock higher. Kratos Defense stock rises after Jefferies upgrade to buy
• Positive Sentiment: Jefferies’ analyst specifically highlights upside from hypersonics and sustained missile/drone demand as key earnings and revenue drivers for Kratos, reinforcing a more bullish medium‑term thesis. This Drone Stock Can Rise 26%, Says Jefferies. Missile Demand Holds the Key.
• Positive Sentiment: Fund commentary and media coverage point to geopolitical risk (ongoing conflict in the Middle East) supporting defense budgets and near‑term program demand, a context analysts say could benefit Kratos’ product lines. Why Kratos Defense & Security Solutions Is Soaring Today
• Negative Sentiment: Insider selling reported today may give some investors pause: the CFO sold roughly $348,150 of KTOS stock. CFO Sells $348,150 in Stock
• Negative Sentiment: A company director disclosed a larger sale of about $2.17 million in KTOS shares, which can be viewed as a short-term headwind for sentiment even if sales are routine or for diversification. Director Sells $2,171,295 in Stock

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently modified their holdings of the stock. Greenleaf Trust grew its holdings in shares of Kratos Defense & Security Solutions by 2.7% during the 4th quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company’s stock valued at $291,000 after acquiring an additional 100 shares in the last quarter. LVW Advisors LLC grew its holdings in shares of Kratos Defense & Security Solutions by 3.0% during the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company’s stock valued at $278,000 after acquiring an additional 107 shares in the last quarter. CENTRAL TRUST Co grew its holdings in shares of Kratos Defense & Security Solutions by 7.3% during the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company’s stock valued at $129,000 after acquiring an additional 115 shares in the last quarter. Quadrant Capital Group LLC grew its holdings in shares of Kratos Defense & Security Solutions by 2.1% during the 4th quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock valued at $449,000 after acquiring an additional 122 shares in the last quarter. Finally, Parkside Financial Bank & Trust grew its holdings in shares of Kratos Defense & Security Solutions by 6.9% during the 4th quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock valued at $148,000 after acquiring an additional 125 shares in the last quarter. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Stock Performance

The firm’s fifty day moving average price is $88.90 and its 200 day moving average price is $87.97. The company has a current ratio of 4.06, a quick ratio of 3.46 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $13.88 billion, a PE ratio of 569.97 and a beta of 1.22.

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

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.