Recent Insider Purchases at Kratos (KTOS) Highlight Value - Noble Financial

Noble Financial affirms Kratos Defense (Nasdaq: KTOS) with a Buy rating and $9 price target amdi a recent slew of insider purchases.

Analyst Mark Jordan noted the following:

• A Director of Kratos, Bandel Carano, has made his second direct open market purchase of the company's stock in less than 3 months; on August 27 he purchased 152,242 shares for $4.23 per share following a 150,000 share purchase on June 4 for $6.01
• Following the purchase on August 27, Director Carano directly owns 506,098 shares of common stock; additionally, his firm, Oak Investment Partners owns 11.8 million shares of the company (a 20.8% ownership position)
• The recent strategic review that led to the $260 million sales of the Electronics Products Group helped show that the company's assets were attractive and materially undervalued by the market: current asset values support our $9 price target
• There are two major catalysts for the stock this fall; the company should complete its 3 demonstration flights for the Navy and the Air Force is expected to award a UAV R&D contract by November; favorable news on these events would be transformative
• We reiterate our Buy rating and $9 price target; major developments in the company's UAV operations could increase this $100 business into a $200 to $400 million operation within 4 years

For an analyst ratings summary and ratings history on Kratos Defense & Security click here. For more ratings news on Kratos Defense & Security click here.

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