Kratos (KTOS) Stock Trades Up, Here Is Why

What Happened?

Shares of aerospace and defense company Kratos (NASDAQ:KTOS) jumped 2.4% in the afternoon session after the company announced the launch of its new "Ragnarök" Low-Cost Cruise Missile (LCCM) system. 

The new strike munition, displayed at the 2025 Miramar Air Show, represented a significant advancement in tactical strike capabilities. Kratos detailed that the Ragnarök system featured a range of 500 nautical miles and could carry an 80-pound payload, making it suitable for various precision missions. A key feature highlighted was its affordability, with an estimated production cost of around $150,000 per unit for bulk orders. The company stated that the initial development was complete and the system was ready for production, with discussions for deployment already underway with defense partners.

After the initial pop the shares cooled down to $96.89, up 2.4% from previous close.

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What Is The Market Telling Us

Kratos’s shares are extremely volatile and have had 33 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 4 days ago when the stock gained 2.3% on the news that an analyst at Canaccord Genuity reaffirmed a "Buy" rating on the stock and significantly raised the price target, which was coupled with news of a new contract from the U.S. Navy. The analyst, Austin Moeller, increased the price target to $120.00 from $74.00, a substantial 62.16% jump. Adding to the positive sentiment, Kratos was awarded a Phase 1 contract by the U.S. Navy to help establish a program for sustaining the AN/SPY-1 radar systems, which are key sensors on Aegis-equipped ships. The move highlighted the Navy's focus on maintaining the operational readiness of its fleet.

Kratos is up 267% since the beginning of the year, and at $96.89 per share, it is trading close to its 52-week high of $105.67 from October 2025. Investors who bought $1,000 worth of Kratos’s shares 5 years ago would now be looking at an investment worth $4,623.

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