Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Receives Average Recommendation of “Buy” from Brokerages

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has earned an average rating of “Buy” from the twenty-three brokerages that are currently covering the company, Marketbeat Ratings reports. Three research analysts have rated the stock with a hold recommendation, seventeen have given a buy recommendation and three have assigned a strong buy recommendation to the company. The average 1 year price target among brokers that have issued a report on the stock in the last year is $102.4118.

A number of brokerages have weighed in on KTOS. The Goldman Sachs Group lowered their target price on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating for the company in a report on Tuesday, July 14th. Jefferies Financial Group set a $105.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Wednesday. Clear Str upgraded shares of Kratos Defense & Security Solutions to a “strong-buy” rating in a research note on Wednesday, April 29th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and dropped their target price for the company from $99.00 to $82.00 in a research report on Friday, June 12th. Finally, Piper Sandler raised shares of 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.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Second-quarter results beat expectations. Kratos reported adjusted earnings of $0.21 per share, up from $0.11 a year earlier and above the roughly $0.13-$0.14 consensus. Revenue rose 30.5% year over year to $458.8 million, exceeding estimates near $410 million. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Kratos Government Solutions revenue increased 36.4% to $379.7 million, while Unmanned Systems revenue rose 8.1% to $79.1 million. Management cited demand across hypersonics, space, jet engines, counter-drone systems and unmanned aircraft, along with strong bookings. Kratos Defense Q2 Earnings and Revenues Outpace Estimates
• Positive Sentiment: Management raised its outlook. Full-year 2026 revenue guidance was lifted to approximately $1.8 billion, above the roughly $1.7 billion analyst consensus, with projected organic revenue growth of 19%-23%. Kratos also outlined plans to produce 3,000 Spartan engines in 2027. Kratos 2026 Organic Growth Forecast
• Positive Sentiment: Analyst sentiment improved. Piper Sandler upgraded KTOS, citing a buying opportunity, while BTIG raised its price target to $104 and maintained a Buy rating. The upgrades reinforce the view that the earnings beat and raised outlook may have been overly discounted by the market. Kratos Defense Upgraded at Piper Sandler
• Neutral Sentiment: Near-term guidance was roughly in line. Third-quarter revenue guidance of $460 million-$480 million brackets the $462.8 million consensus estimate, suggesting continued growth but limited immediate upside from the next-quarter forecast. Kratos Defense Rallies on Results and Upgrade
• Neutral Sentiment: Call-option activity was elevated, with 13,877 contracts purchased versus average daily volume of 10,153, indicating increased bullish speculation but not a fundamental change in the business.
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $115 to $100, although it retained an Overweight rating. Kratos also continues to trade at a demanding valuation, making the stock sensitive to any slowdown in growth or execution.

Insider Activity at Kratos Defense & Security Solutions

In other news, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction dated Friday, May 15th. The stock was sold at an average price of $52.13, for a total value of $338,845.00. Following the completion of the sale, the insider directly owned 221,550 shares in the company, valued at $11,549,401.50. This trade represents a 2.85% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the business’s stock in a transaction dated Monday, June 1st. The shares were sold at an average price of $63.74, for a total value of $318,700.00. Following the completion of the sale, the chief financial officer directly owned 290,161 shares of the company’s stock, valued at $18,494,862.14. The trade was a 1.69% 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. Insiders have sold a total of 140,036 shares of company stock worth $7,810,417 over the last three months. 1.50% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in KTOS. Harbor Investment Advisory LLC bought a new stake in shares of Kratos Defense & Security Solutions during the second quarter valued at approximately $25,000. Mcguire Capital Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions during the fourth quarter worth approximately $25,000. Atlantic Union Bankshares Corp lifted its holdings in shares of Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 380 shares in the last quarter. Vision Retirement LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares in the last quarter. Finally, Rakuten Securities Inc. acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at $31,000. Institutional investors own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Stock Performance

KTOS stock opened at $55.34 on Thursday. The stock has a 50-day moving average price of $52.50 and a 200-day moving average price of $71.15. Kratos Defense & Security Solutions has a 1-year low of $43.09 and a 1-year high of $134.00. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The firm has a market cap of $10.38 billion, a PE ratio of 325.53 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.37% and a net margin of 2.03%.The company had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. During the same period in the previous year, the business earned $0.11 EPS. The firm’s revenue was up 30.5% compared to the same quarter last year. As a group, equities research analysts expect that Kratos Defense & Security Solutions will post 0.48 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.