Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Falls 2.6% Following Analyst Downgrade

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was down 2.6% during mid-day trading on Tuesday after Barclays lowered their price target on the stock from $90.00 to $80.00. Barclays currently has an overweight rating on the stock. Kratos Defense & Security Solutions traded as low as $36.20 and last traded at $36.72. Approximately 3,870,926 shares traded hands during mid-day trading, a decline of 12% from the average session volume of 4,408,240 shares. The stock had previously closed at $37.69.

Several other brokerages have also commented on KTOS. Rothschild & Co Redburn started coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, October 6th. They set a “buy” rating and a $70.00 price target on the stock. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Monday, October 19th. Stifel Nicolaus reduced their price objective on shares of 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. Jefferies Financial Group reiterated a “buy” rating and issued a $50.00 price objective on shares of Kratos Defense & Security Solutions in a report on Monday. Finally, BNP Paribas Exane upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “outperform” rating in a report on Thursday, October 8th. Two analysts have rated the stock with a Strong Buy rating, twenty-two have issued a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average target price of $77.40.

Insider Activity

In other Kratos Defense & Security Solutions news, CFO Deanna H. Lund sold 7,000 shares of the business’s stock in a transaction on Monday, September 21st. The shares were sold at an average price of $48.78, for a total transaction of $341,460.00. Following the completion of the transaction, the chief financial officer owned 273,511 shares of the company’s stock, valued at $13,341,866.58. The trade was a 2.50% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 26,500 shares of the company’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $63.25, for a total transaction of $1,676,125.00. Following the sale, the insider owned 182,084 shares of the company’s stock, valued at $11,516,813. This trade represents a 12.70% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders have sold 373,013 shares of company stock worth $23,340,582. Insiders own 1.50% 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: Kratos reached a long-term agreement with Seagate Space to use its Gateway offshore launch platform. The deal supports a first mission planned for 2027, with additional launches anticipated in later years—potentially creating a recurring source of activity in national-security launches. Article: Kratos and Seagate Space partnership
• Positive Sentiment: Kratos reported Q3 revenue of $471.8 million, up 35.7% year over year, and non-GAAP earnings of $0.24 per share, ahead of consensus. Its next-quarter revenue outlook was also reported above analyst estimates, while management cited growth plans for 2027. Article: KTOS Q3 2026 deep dive
• Positive Sentiment: The company also won a contract to provide gateway and antenna systems for Gulf Space Technology’s software-defined satellite, complementing its work on the customer’s satellite operations center. Article: Gulf Space Technology contract
• Negative Sentiment: Barclays lowered its KTOS price target from $90 to $80, although it maintained an Overweight rating. The reduction could weigh on sentiment despite the firm’s continued positive stance. Article: Barclays price-target update
• Neutral Sentiment: Recent coverage also flags supply-chain and cash-flow pressures as risks to execution, even as drone, engine, hypersonics and space programs support the company’s growth outlook. Article: Kratos and Seagate Space partnership

Institutional Trading of Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the business. B&D White Capital Company LLC raised its position in shares of Kratos Defense & Security Solutions by 21,357.3% during the third quarter. B&D White Capital Company LLC now owns 1,823,870 shares of the aerospace company’s stock valued at $77,861,000 after buying an additional 1,815,370 shares during the last quarter. Bank of New York Mellon Corp bought a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at about $65,293,000. Bamco Inc. NY acquired a new stake in Kratos Defense & Security Solutions during the second quarter worth about $53,746,000. American Capital Management Inc. acquired a new stake in Kratos Defense & Security Solutions during the second quarter worth about $51,338,000. Finally, Paradigm Capital Management Inc. NY acquired a new stake in Kratos Defense & Security Solutions during the second quarter worth about $34,842,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Stock Down 2.6%

The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The stock has a market capitalization of $6.89 billion, a P/E ratio of 306.00 and a beta of 1.18. The firm has a 50 day moving average of $43.20 and a 200-day moving average of $62.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Thursday, November 5th. The aerospace company reported $0.24 EPS for the quarter, beating the consensus estimate of $0.21 by $0.03. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The firm had revenue of $471.80 million during the quarter, compared to analysts’ expectations of $471.40 million. During the same quarter in the prior year, the firm posted $0.14 EPS. The company’s revenue for the quarter was up 35.7% on a year-over-year basis. On average, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current fiscal year.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions is a defense technology company that develops products and services for U.S. government agencies, national security organizations, and allied governments. Its work spans unmanned systems, satellite communications, microwave electronics, command-and-control systems, and training and simulation. The company’s offerings include unmanned aerial vehicles and target drones, as well as systems and components used in space and satellite communications and other defense applications.