Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 2.1% – Here’s Why

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price traded down 2.1% on Tuesday . The company traded as low as $61.00 and last traded at $61.99. 2,756,541 shares traded hands during trading, a decline of 38% from the average session volume of 4,462,213 shares. The stock had previously closed at $63.29.

Key Stories Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos received multi-million-dollar orders through its newly acquired Orbit business for GAIA 100 tri-band satellite ground-station systems. The orders indicate demand for Orbit’s S-, X- and Ka-band communications and tracking technology and provide support for Kratos’ satellite-communications expansion. Kratos Receives Multi-Million-Dollar Orders for GAIA 100 Tri-Band Ground Station Systems Through Newly Acquired Orbit
• Positive Sentiment: A U.S. Marine Corps Valkyrie Collaborative Combat Aircraft successfully demonstrated electronic-warfare capabilities and beyond-line-of-sight command and control during flight testing. The milestone reinforces Kratos’ position in unmanned and autonomous defense, although it did not include a new contract award. USMC Valkyrie Demonstrates Beyond-Line-Of-Sight Command and Control
• Positive Sentiment: Recent coverage highlighted Kratos’ strong second quarter, including 30.5% year-over-year revenue growth to $458.8 million and earnings of $0.21 per share versus a $0.14 consensus estimate. Organic growth was led by Kratos Government Solutions and businesses focused on rocket support, turbine technology and microwave products. Kratos: A Production Powerhouse That No Longer Feels Speculative
• Neutral Sentiment: Analysts cited Kratos’ $2.08 billion backlog, capacity expansion and exposure to unmanned systems and hypersonics as long-term advantages. However, the investment case depends on improving margins, and the stock’s roughly 356 price-to-earnings ratio leaves limited room for execution misses. Kratos: A Cautious Buy At The Inflection Point
• Negative Sentiment: Insider Phillip D. Carrai sold 26,500 shares for approximately $1.68 million, reducing his holdings by 12.7%. SVP Marie Mendoza separately sold 1,513 shares worth about $97,000, cutting her position by 2.38%. Both sales were made under pre-arranged Rule 10b5-1 plans, which reduces their importance as discretionary bearish signals, but the transactions still weighed on investor sentiment. Kratos Insider Selling

Analyst Upgrades and Downgrades

A number of research analysts have recently issued reports on the company. Clear Str upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a report on Wednesday, April 29th. Jefferies Financial Group set a $105.00 price objective on Kratos Defense & Security Solutions in a research note on Wednesday, August 5th. The Goldman Sachs Group dropped their price objective on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research report on Tuesday, July 14th. Stifel Nicolaus cut their target price on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating on the stock in a research note on Thursday, August 6th. Finally, Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a report on Wednesday, August 5th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of “Moderate Buy” and a consensus target price of $99.47.

Kratos Defense & Security Solutions Trading Down 3.9%

The company has a 50 day moving average of $52.82 and a two-hundred day moving average of $67.18. The stock has a market capitalization of $10.92 billion, a PE ratio of 341.82 and a beta of 1.08. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 EPS for the quarter, beating analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The company had revenue of $458.80 million during the quarter, compared to analysts’ expectations of $410.36 million. During the same period last year, the business posted $0.11 earnings per share. The firm’s revenue was up 30.5% compared to the same quarter last year. Sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Insider Transactions at Kratos Defense & Security Solutions

In related news, insider Steven S. Fendley sold 35,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, June 8th. The shares were sold at an average price of $58.23, for a total value of $2,038,050.00. Following the completion of the sale, the insider directly owned 309,087 shares in the company, valued at $17,998,136.01. This trade represents a 10.17% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, insider Phillip D. Carrai sold 26,500 shares of the business’s stock in a transaction that occurred on Monday, August 17th. The stock was sold at an average price of $63.25, for a total transaction of $1,676,125.00. Following the sale, the insider directly owned 182,084 shares in the company, valued at approximately $11,516,813. This represents a 12.70% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 461,536 shares of company stock worth $28,557,264 over the last ninety days. 1.50% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently made changes to their positions in the company. CENTRAL TRUST Co lifted its position in 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 worth $129,000 after acquiring an additional 115 shares during the period. Quadrant Capital Group LLC increased its holdings in shares of Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock valued at $449,000 after purchasing an additional 122 shares during the period. Parkside Financial Bank & Trust raised its stake in shares of Kratos Defense & Security Solutions by 6.9% in the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock worth $148,000 after purchasing an additional 125 shares during the last quarter. Northwestern Mutual Investment Management Company LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 0.4% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 37,776 shares of the aerospace company’s stock worth $2,868,000 after purchasing an additional 153 shares during the period. Finally, Parallel Advisors LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 44.1% during the fourth quarter. Parallel Advisors LLC now owns 526 shares of the aerospace company’s stock worth $40,000 after purchasing an additional 161 shares during the period. 75.92% of the stock is owned by institutional investors and hedge funds.

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.