Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Up 1.9% – Should You Buy?

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares were up 1.9% during trading on Tuesday. The company traded as high as $41.72 and last traded at $40.99. Approximately 3,226,426 shares changed hands during mid-day trading, a decline of 26% from the average daily volume of 4,341,057 shares. The stock had previously closed at $40.23.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: KeyBanc maintained an “overweight” rating and still sees about 83% upside from the cited share price, despite lowering its target. The article also notes Kratos has raised its revenue outlook twice, a sign of continued business momentum. Article: Kratos Is Down 46% in 2026. KeyBanc Cut Its Target but Still Sees 83% Upside
• Positive Sentiment: Pre-earnings commentary points to manufacturing expansion, rising hypersonics revenue and strong defense bookings as potential supports for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?
• Neutral Sentiment: One earnings-season outlook highlights defense stocks expected to beat estimates, but the available article summary does not specify Kratos’s individual forecast or expected results. Article: 4 Defense Stocks Poised to Beat Expectations This Earnings Season
• Negative Sentiment: KeyBanc cut its price target from $130 to $75. Although the firm remains bullish, the steep reduction may weigh on sentiment; the article also says KTOS is down 46% in 2026. Article: KeyCorp rating and price-target update
• Negative Sentiment: Currency pressures could constrain margins, tempering otherwise constructive expectations for Q3 growth. Article: Should You Buy, Hold or Sell KTOS Stock Ahead of Q3 Earnings Release?

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Piper Sandler reduced their price target on shares of Kratos Defense & Security Solutions from $75.00 to $61.00 and set an “overweight” rating for the company in a research note on Friday, October 23rd. Citigroup reiterated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Monday, October 19th. BNP Paribas Exane upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “outperform” rating in a research note on Thursday, October 8th. Zacks Research upgraded Kratos Defense & Security Solutions from a “hold” rating to a “strong-buy” rating in a research report on Friday, October 23rd. Finally, Rothschild & Co Redburn started coverage on Kratos Defense & Security Solutions in a research note on Tuesday, October 6th. They set a “buy” rating and a $70.00 price target for the company. Three equities research analysts have rated the stock with a Strong Buy rating, twenty have assigned a Buy rating, one has given a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, Kratos Defense & Security Solutions has an average rating of “Moderate Buy” and a consensus price target of $83.65.

Kratos Defense & Security Solutions Stock Up 1.9%

The business has a fifty day moving average price of $44.82 and a two-hundred day moving average price of $64.36. The firm has a market capitalization of $7.69 billion, a price-to-earnings ratio of 241.12 and a beta of 1.11. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. Kratos Defense & Security Solutions’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.11 EPS. On average, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current year.

Insider Buying and Selling at Kratos Defense & Security Solutions

In other news, CEO Eric Demarco sold 300,000 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $64.33, for a total value of $19,299,000.00. Following the transaction, the chief executive officer owned 761,632 shares in the company, valued at approximately $48,995,786.56. This represents a 28.26% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Steven Fendley sold 7,000 shares of the company’s stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the completion of the sale, the insider directly owned 288,111 shares of the company’s stock, valued at approximately $16,180,313.76. This trade represents a 2.37% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last 90 days, insiders sold 377,013 shares of company stock valued at $23,564,182. Corporate insiders own 1.50% of the company’s stock.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently modified their holdings of the company. Kestra Advisory Services LLC increased its position in Kratos Defense & Security Solutions by 19.7% during the 3rd quarter. Kestra Advisory Services LLC now owns 54,688 shares of the aerospace company’s stock worth $2,335,000 after purchasing an additional 8,994 shares in the last quarter. B&D White Capital Company LLC raised its holdings in shares of Kratos Defense & Security Solutions by 21,357.3% during the 3rd 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 period. Commonwealth Equity Services LLC increased its holdings in Kratos Defense & Security Solutions by 7.9% during the 3rd quarter. Commonwealth Equity Services LLC now owns 40,086 shares of the aerospace company’s stock worth $1,711,000 after purchasing an additional 2,952 shares during the last quarter. Southern Financial Group LLC increased its holdings in shares of Kratos Defense & Security Solutions by 8.4% in the 3rd quarter. Southern Financial Group LLC now owns 6,235 shares of the aerospace company’s stock valued at $266,000 after acquiring an additional 485 shares during the last quarter. Finally, Provenance Wealth Advisors LLC grew its stake in Kratos Defense & Security Solutions by 128.9% during the 3rd quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock worth $32,000 after buying an additional 419 shares during the last quarter. Institutional investors and hedge funds own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.