Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS) experienced a notable decline of 6.2% on January 12, 2024. The stock traded as low as $85.02 during the day and closed at $87.73, down from a previous close of $93.48. Trading volume reached 2,979,609 shares, marking a 28% decrease compared to the average session volume of 4,140,275 shares.
Analyst Insights on Kratos Defense
Recent commentary from research analysts has provided mixed signals regarding Kratos’ stock performance. Citigroup reaffirmed a “market outperform” rating on January 12. Meanwhile, BTIG Research raised their price target on Kratos from $80.00 to $95.00, assigning a “buy” rating on November 6, 2023. On the other hand, The Goldman Sachs Group increased its price target from $93.00 to $125.00 and maintained a “buy” rating as of January 20, 2024.
Overall, the consensus rating for Kratos stock is “Moderate Buy,” with one analyst rating it as a Strong Buy, sixteen as Buy, and five as Hold. The average price target stands at $95.28, according to MarketBeat.com.
Insider Trading Activity Raises Questions
In addition to market fluctuations, insider trading activity has drawn attention. On January 12, insider Stacey G. Rock sold 16,568 shares at an average price of $116.74, totaling approximately $1.93 million. Following the sale, Rock retained 26,487 shares valued at around $3.09 million, indicating a 38.48% decrease in ownership.
CEO Eric M. Demarco also engaged in significant trading, selling 200,000 shares on December 1, 2023, for a total of $14.82 million. Post-transaction, Demarco owned 1,196,237 shares valued at approximately $88.63 million, reflecting a 14.32% decrease in his holdings. Over the last 90 days, insiders sold a total of 916,815 shares worth $75.02 million. Currently, insiders hold 2.37% of the company’s stock.
Institutional investors have also been active in the market. AllianceBernstein L.P. significantly increased its stake by 1,389% during the third quarter, acquiring an additional 2,525,921 shares for a total of $247.41 million. Other notable institutional purchases include Norges Bank, which acquired shares worth approximately $104.81 million in the fourth quarter, and Franklin Resources Inc., which raised its stake by 29.6% in the second quarter to own 5,086,494 shares valued at $236.27 million.
Currently, institutional investors hold 75.92% of Kratos Defense’s stock, indicating strong confidence in the company’s long-term prospects despite recent market fluctuations.
As Kratos Defense continues to navigate these challenges, investors will be closely monitoring both insider trading patterns and analyst ratings to gauge the company’s future performance in the competitive defense sector.
