Kratos Defense & Security Solutions, Inc. (KTOS): What’s the Story?

Kratos Defense & Security Solutions, Inc. (KTOS) is an interesting player in the Services space, with a focus on Security & Protection Services. The stock has been active on the tape, currently trading at $10.93, down from yesterday’s close by -2.76%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Kratos Defense & Security Solutions, Inc. (KTOS) currently trades with a market capitalization of $1.13 Billion. That value represents a market adjusting for revenues that have been growing by 8.33 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$39.6 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of $0.01 on a per share basis this quarter. Perhaps, that suggests something about why 9.89% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Kratos Defense & Security Solutions, Inc. recorded a 52-week high of $13.93. It is now trading 3% off that level. The stock is trading $10.58 its 50-day moving average by -0.35%. The stock carved out a 52-week low down at $8.90.

In recent action, Kratos Defense & Security Solutions, Inc. (KTOS) has made a move of -5.29% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 14.61, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 14.07% with $101.57 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of KTOS.

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