Kratos Defense & Security Solutions Inc. (NASDAQ: KTOS) stock fell -0.13% on Friday to $15.27 against a previous-day closing price of $15.29. With 1.34 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.93 million shares. During the session, the Aerospace & Defense company that operates in wider Industrials sector, reached to the highest price of $15.56 whereas the lowest price it dropped to was $14.85. The 52-week range on KTOS shows that it touched its highest point at $27.11 and its lowest point at $12.32 during that stretch. It currently has a 1-year price target of $22.11. Beta for the stock currently stands at 0.76.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of KTOS was up-trending over the past week, with a rise of 9.38%, but this was up by 11.14% over a month. Three-month performance dropped to -2.99% while six-month performance fell -10.33%. The stock lost -43.67% in the past year, while it has lost -21.29% so far this year. A look at the trailing 12-month EPS for KTOS yields -0.14 with Next year EPS estimates of 0.51. For the next quarter, that number is 0.04. This implies an EPS growth rate of -99.90% for this year and 38.17% for next year. EPS is expected to grow by 2.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 14.90%.
Float and Shares Shorts:
At present, 125.90 million KTOS shares are outstanding with a float of 122.82 million shares on hand for trading. On Jul 14, 2022, short shares totaled 4.0 million, which was 3.20% higher than short shares on Jun 14, 2022. In addition to Mr. Eric M. DeMarco as the firm’s CEO, Pres & Director, Ms. Deanna Hom Lund serves as its Exec. VP, CFO & Director.
Through their ownership of 86.91% of KTOS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 47.90% of KTOS, in contrast to 37.65% held by mutual funds. Shares owned by individuals account for 2.86%. As the largest shareholder in KTOS with 8.93% of the stake, The Vanguard Group, Inc. holds 11,155,509 shares worth 11,155,509. A second-largest stockholder of KTOS, BlackRock Fund Advisors, holds 8,636,407 shares, controlling over 6.91% of the firm’s shares. ARK Investment Management LLC is the third largest shareholder in KTOS, holding 8,229,121 shares or 6.58% stake. With a 5.09% stake in KTOS, the ARK Autonomous Technology & Robot is the largest stakeholder. A total of 6,359,909 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.97% of KTOS stock, is the second-largest Mutual Fund holder. It holds 3,706,694 shares valued at 51.45 million. Vanguard Small Cap Index Fund holds 2.52% of the stake in KTOS, owning 3,155,506 shares worth 43.8 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KTOS since 11 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With KTOS analysts setting a high price target of $30.00 and a low target of $16.00, the average target price over the next 12 months is $21.95. Based on these targets, KTOS could surge 96.46% to reach the target high and rise by 4.78% to reach the target low. Reaching the average price target will result in a growth of 43.75% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. KTOS will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $0.49 being high and $0.27 being low. For KTOS, this leads to a yearly average estimate of $0.37. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Kratos Defense & Security Solutions Inc. surprised analysts by $0.02 when it reported $0.04 EPS against a consensus estimate of $0.02. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is $0.08 and the low estimate is -$0.01. The average estimate for the next quarter is thus $0.04.
Summary of Insider Activity:
Insiders traded KTOS stock several times over the past three months with 13 Buys and 18 Sells. In these transactions, 204,000 shares were bought while 123,102 shares were sold. The number of buy transactions has increased to 74 while that of sell transactions has risen to 129 over the past year. The total number of shares bought during that period was 1,415,502 while 963,698 shares were sold.