Kratos Defense & Security Solut (KTOS) Stock Analysis
Recovery setup
Industrials · Aerospace & Defense
Sell if holding. Engine safety override at $55.70: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.5:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.38; Below-average business quality; Negative price momentum.
Kratos Defense is a technology, hardware, and software company serving defense and national security markets through two segments: Kratos Government Solutions (microwave electronics, space/satellite, training, C5ISR, turbine technologies) and Unmanned Systems (jet-powered aerial... Read more
Sell if holding. Engine safety override at $55.70: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.5:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.38; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 53. Score 5.2/10, moderate confidence.
Passes 6/9 gates (favorable risk/reward ratio, clean insider activity, news events none recent, earnings proximity 58d clear, semi cycle peak clear, materials cycle peak clear). Fails on weak momentum and death cross (50MA < 200MA). Suitability: moderate.
Recent developments
updated 2026-06-09Recent Developments — Kratos Defense & Security Solut
Latest news
- NEWS JP Morgan Upgrades Kratos Defense & Security to Overweight, Lowers Price Target to $82 — benzinga Jun 12, 2026 positive
- NEWS What's Going On With Kratos Defense Stock On Tuesday? — benzinga Jun 9, 2026 neutral
- NEWS If You Invested $100 In Kratos Defense & Security Stock 5 Years Ago, You Would Have This Much Today — benzinga Jun 3, 2026
- NEWS 10 Industrials Stocks With Whale Alerts In Today's Session — benzinga Jun 1, 2026 neutral
- NEWS Kratos Defense (KTOS) Stock Is Trending As Trump Administration Eyes Equity Stakes In US Drone Makers — benzinga May 28, 2026 positive
Generated 2026-06-15T18:11:46Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- MEDIUMCustomerU.S. Navy18%10-K Item 1A: 'the U.S. Navy accounted for 17.7% and 14.7%, respectively, of our total revenues' in fiscal 2025 and 2024
- MEDIUMCustomerU.S. Air Force13%10-K Item 1A: 'the U.S. Air Force accounted for 12.6% and 15.2% respectively, of our total revenues' in fiscal 2025 and 2024
- HIGHCustomerU.S. Government68%10-K Item 1A: 'In fiscal 2025, 2024 and 2023, we generated 68%, 67% and 69%, respectively, of our total revenues from contracts with the U.S. Government'
Material Events(8-K, last 90d)
- 2026-03-25Item 5.02LOWBoard appointed David King as director effective March 23, 2026, also joining the Audit Committee. Mr. Hoglund stepped down from Audit Committee but remains Chairman and member of other committees. Routine board appointment.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results.
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Rating Breakdown
2 floor-breakers·1 ceiling hit
Quality below the gate floor. Component breakdown shows what dragged the score down.static
Price action weak — below key moving averages, no momentum carry. Needs a base before trend-continuation setups apply.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $55.70: Quality below floor (2.2 < 4.0) triggers a hard block regardless of the otherwise-positive setup — overall score 5.2/10 and A.R:R 5.5:1 is above the 1.5:1 BUY gate. Specifically: Elevated put/call ratio: 1.38; Below-average business quality; Negative price momentum. Chart setup: Death cross but MACD improving, RSI 53. Prior stop was $51.76. Score 5.2/10, moderate confidence.
Take-profit target: $101.75 (+82.8% upside). Prior stop was $51.76. Stop-loss: $51.76.
Concentration risk — Customer: U.S. Government (68.0%); Quality below floor (2.2 < 4.0).
Kratos Defense & Security Solut trades at a P/E of 339.6 (forward 53.8). TrendMatrix value score: 6.3/10. Verdict: Sell.
28 analysts cover KTOS with a consensus score of 4.1/5. Average price target: $113.
What does Kratos Defense & Security Solut do?Kratos Defense is a technology, hardware, and software company serving defense and national security markets through...
Kratos Defense is a technology, hardware, and software company serving defense and national security markets through two segments: Kratos Government Solutions (microwave electronics, space/satellite, training, C5ISR, turbine technologies) and Unmanned Systems (jet-powered aerial drones, ground/seaborne unmanned systems). The US Government accounted for 68% of total revenues in fiscal 2025, with the US Navy at 17.7% and US Air Force at 12.6%.