Connor Clark & Lunn Investment Management Ltd. recently acquired a significant stake in Kratos Defense & Security Solutions, Inc., purchasing 7,969 shares valued at approximately $370,000. This acquisition was disclosed in the firm’s latest 13F filing with the Securities and Exchange Commission (SEC) for the second quarter of 2023.
Several other institutional investors have also shown interest in Kratos Defense. For instance, Costello Asset Management INC established a new stake during the first quarter, valued at $29,000. Similarly, Twin Tree Management LP and Banque Cantonale Vaudoise purchased stakes worth $37,000 and $38,000, respectively. Additionally, NewEdge Advisors LLC increased its position by 64.4% and now holds 1,315 shares, valued at $39,000, after acquiring an additional 515 shares.
Institutional investors collectively own 75.92% of Kratos Defense’s stock, indicating strong confidence in the company’s future.
Stock Performance and Financial Metrics
On the trading front, shares of NASDAQ:KTOS opened at $67.31 on the last trading day, reflecting a decline of 4.8%. The company currently boasts a market capitalization of $11.36 billion, a price-to-earnings (P/E) ratio of 673.17, and a beta of 1.11. Financial ratios indicate a healthy liquidity position, with a current ratio of 4.43 and a quick ratio of 3.88. Kratos has a debt-to-equity ratio of 0.12 and has experienced significant stock price fluctuations, with a 12-month low of $23.90 and a high of $112.57.
In the most recent quarterly earnings report, released on November 4, 2023, Kratos reported earnings per share (EPS) of $0.14, surpassing analysts’ consensus estimates of $0.12. The company’s revenue reached $347.60 million, exceeding expectations of $323.01 million. Compared to the same quarter last year, revenue rose by 26.0%. Analysts anticipate that Kratos will achieve an EPS of $0.31 for the current fiscal year.
Analyst Ratings and Insider Transactions
Recent analyst coverage reflects a mix of optimism and caution. BNP Paribas Exane initiated coverage with a “neutral” rating and a target price of $80.00. Conversely, JMP Securities raised its price target from $70.00 to $105.00, affirming a “market outperform” rating. Stifel Nicolaus also increased its target price to $112.00 with a “buy” rating. Collectively, analysts have given Kratos an average rating of “Moderate Buy” with an average target price of $82.06.
In terms of insider activity, Vice President Maria Cervantes De Burgreen sold 6,264 shares on September 15 for approximately $437,227.20. Following this transaction, she retained 53,609 shares, valued at $3,741,908.20. Additionally, Phillip D. Carrai, another insider, sold 6,000 shares on the same day for about $412,920.00. Over the past 90 days, insiders have sold a total of 85,124 shares worth approximately $6,817,388. Currently, insiders hold 2.37% of the company’s stock.
Kratos Defense & Security Solutions specializes in mission-critical products and services for national security, operating through its Kratos Government Solutions and Unmanned Systems segments. The company is well-positioned to capitalize on growing defense sector demands.
For investors interested in the latest developments regarding Kratos Defense & Security Solutions, further information can be found at HoldingsChannel.com, which tracks the latest 13F filings and insider trades.
