Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Up 10.1% After Analyst Upgrade

06 Apr 2026, 20:56 by Mitch Edgeman · The Markets Daily

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) shares shot up 10.1% during trading on Monday after Jefferies Financial Group upgraded the stock from a hold rating to a buy rating. Jefferies Financial Group now has a $85.00 price target on the stock. Kratos Defense & Security Solutions traded as high as $74.41 and last traded at $74.09. 4,120,434 shares traded hands during trading, a decline of 6% from the average session volume of 4,398,880 shares. The stock had previously closed at $67.31.

Other research analysts also recently issued research reports about the company. Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research note on Thursday, January 22nd. Truist Financial set a $135.00 price target on shares of Kratos Defense & Security Solutions in a report on Friday, January 9th. Cantor Fitzgerald restated an “overweight” rating and set a $115.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Stifel Nicolaus lifted their price objective on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Finally, Citizens Jmp increased 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 report on Monday, January 12th. One research analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have issued a Hold rating to the company. Based on data from MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus price target of $98.28.

Check Out Our Latest Stock Analysis on Kratos Defense & Security Solutions

Insider Transactions at Kratos Defense & Security Solutions

In other news, CEO Eric M. Demarco sold 191,699 shares of the business’s stock in a transaction that occurred on Tuesday, January 6th. The shares were sold at an average price of $90.28, for a total value of $17,306,585.72. Following the completion of the sale, the chief executive officer directly owned 687,117 shares in the company, valued at approximately $62,032,922.76. The trade was a 21.81% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Thomas E. Iv Mills sold 8,523 shares of the company’s stock in a transaction dated Wednesday, January 7th. The shares were sold at an average price of $92.98, for a total transaction of $792,468.54. Following the sale, the insider owned 9,802 shares of the company’s stock, valued at approximately $911,389.96. The trade was a 46.51% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 402,699 shares of company stock valued at $36,696,613. Corporate insiders own 2.37% of the company’s stock.

Kratos Defense & Security Solutions News Roundup

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

Positive Sentiment: Jefferies upgraded KTOS from Hold to Buy and kept an $85 price target, signaling analyst conviction that Kratos can benefit from accelerating demand in missiles, drones and hypersonics. Kratos Defense stock rises after Jefferies upgrade to buy
Positive Sentiment: Jefferies’ analyst note highlights hypersonics and missile-related business as key upside drivers and kept the $85 target—this research push is the primary catalyst cited across market coverage today. This Drone Stock Can Rise 26%, Says Jefferies. Missile Demand Holds the Key.
Positive Sentiment: Market commentary (The Motley Fool) points to an extended Middle East conflict scenario that could sustain defense spending and provide tailwinds for Kratos’ product lines, supporting the upbeat analyst view. Why Kratos Defense & Security Solutions Is Soaring Today
Negative Sentiment: A company director sold about $2.17 million of KTOS stock, a sizable insider disposal that some investors may view as a red flag or personal liquidity action. Director Sells $2,171,295.00 in Stock
Negative Sentiment: The CFO sold $348,150 of shares, another insider sale that could temper enthusiasm for some shareholders despite the analyst upgrade. CFO Sells $348,150.00 in Stock

Institutional Inflows and Outflows

Large investors have recently bought and sold shares of the business. Alliancebernstein L.P. boosted its stake in Kratos Defense & Security Solutions by 1,389.0% during the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock valued at $247,409,000 after purchasing an additional 2,525,921 shares during the last quarter. Corient Private Wealth LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 7,701.6% in the fourth quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company’s stock worth $120,966,000 after buying an additional 1,573,123 shares during the last quarter. Norges Bank bought a new stake in Kratos Defense & Security Solutions during the fourth quarter valued at approximately $104,807,000. Westfield Capital Management Co. LP bought a new position in Kratos Defense & Security Solutions in the third quarter worth approximately $91,901,000. Finally, First Trust Advisors LP raised its holdings in Kratos Defense & Security Solutions by 29.5% in the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock worth $280,402,000 after purchasing an additional 698,778 shares during the period. 75.92% of the stock is owned by hedge funds and other institutional investors.

Kratos Defense & Security Solutions Price Performance

The firm has a 50 day moving average price of $89.65 and a 200 day moving average price of $88.02. The stock has a market cap of $13.88 billion, a P/E ratio of 569.97 and a beta of 1.22. The company has a quick ratio of 3.46, a current ratio of 4.06 and a debt-to-equity ratio of 0.05.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates 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 firm had revenue of $345.10 million during the quarter, compared to analysts’ expectations of $327.51 million. During the same period in the prior year, the company posted $0.13 earnings per share. The company’s revenue for the quarter was up 21.9% compared to the same quarter last year. On average, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

About Kratos Defense & Security Solutions

(Get Free Report)

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.