Kratos Defense & Security Solutions, Inc. (KTOS) Seems To Be An Exciting Choice For The Short Term

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) is now being followed by Robert W. Baird, as they initiated the stock at Outperform on December 04. Analysts at Goldman, started covering the stock on December 08 with a Neutral rating. Analysts at JP Morgan, made their first call about the stock on December 01, recommending it is Neutral.

Kratos Defense & Security Solutions, Inc. (KTOS) hit an intraday high Thursday at $13.78. The shares finished at $13.74, after trading as low as $12.423 earlier in the session. It rose 7.26% in recent trade and currently has a stock-market value of $1.44B. Trading activity significantly improved as the volume at ready counter increased to 3,005,553 shares versus 1,508,090 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,452,089 shares. The stock is now 54.38% above against its bear-market low of $8.9 on March 19, 2018. It has retreated -17.1% since it’s 52-week high of $16.09 reached in November. Now the market price is up 36.99% on the year and up 29.75% YTD.

KTOS’s 50 day simple moving average (SMA 50) price is $13.79 and its 200-day simple moving average (SMA 200) price is $12.31. The company’s stock currently has a total float of 101.72M shares. Its weekly volatility is hovering around 5.85% and felt 4.94% volatility in price over a month. On the upside, the share price will test short term resistance at around $14.21. On a downside, the stock is likely to find some support, which begins at $12.85. The failure to get near-term support could push it to $11.95.

Separately, it has been reported that multiple insider activity took place at Kratos Defense & Security Solutions, Inc. (KTOS). President, MS Division Mills Thomas E Iv sold 73,372 shares for $15,768 in transaction occurred on 2018/08/09. After making this transaction, the President, MS Division owns a direct stake of 967,777 shares, worth $216,652, as per the last closing price. On 2018/08/07 Demarco Eric M, President & CEO at KTOS, purchased 10,000 shares at an average price of $12.69 per share. The new stake is valued at $7,844,070.

Director, 10% Owner, Carano Bandel L had invested in 10,000 shares for $13,550,305 through a trade on 2018/08/07. Following this activity, the insider holds 127,000 shares worth $186,000,000 as of recent close. Wall Street’s most bullish Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) analysts are predicting the share price to blow past $20 per share during the next 12 months. The current median share price forecast by them is $16, suggesting that the stock could increase 16.45% in that time frame. The average price target of $16.4 calls for a nearly 19.36% increase in the stock price.

Moreover, it trades for 41.01 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 2.79x price/book and 2.2x price/sales. Compared to others, Kratos Defense & Security Solutions, Inc. is in a different league with regards to profitability, having net margins of -4.6%. To put some perspective around this, the industry’s average net margin is 10.5%. KTOS’s ROE is -6%, which is also considerably worse than the industry’s ROE of 21.14%. It’s also very liquid in the near term, with a current ratio of 2.9. The stock has a debt/capital of 0.

Shares of Kratos Defense & Security Solutions, Inc. (KTOS) have dropped -2.9% since the company’s last earnings report. Over the past 12 fiscal quarters, Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has topped consensus earnings estimates in 10 quarters (83%), missed earnings in 2 quarters (16%), whereas at 0 occasion EPS met analyst expectations. KTOS last reported earnings on November 06, 2018 when it released Sep-18 results that exceeded expectations. The company raked in $0.08 per share, -99.94% change on the same period last year. That was better than consensus for $0.03. Revenue for the recent quarter stood at $159.4 million, down -19% on last year and above the $157.73 million predicted by analysts. For this quarter, Wall Street analysts forecast revenue in a range of $186 million to $192 million, which should be compared with $212.07 million generated last year. EPS is seen in a range of $0.04 to $0.08, against the $0.13 reported a year ago.