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An aerospace and defense stock that insiders are active in here is
Kratos Defense & Security Solutions(KTOS - Get Report), a specialized national security technology business providing mission critical products, services and solutions for U.S. national security priorities. Insiders are buying this stock into weakness, since shares are off by 17% in the last six months.
Kratos Defense & Security Solutions has a market cap of $282 million and an enterprise value of $887 million. This stock trades at a premium valuation, with a forward price-to-earnings of 499. Its estimated growth rate for this year is 93.4%, and for next year it's pegged at 106.2%. This not a cash-rich company, since the total cash position on its balance sheet is $49 million and its total debt is $650.60 million.
The CEO just
bought 26,627 shares, or about $124,000 worth of stock, at $4.69 per share.
From a technical perspective, KTOS is currently trending above its 50-day moving average and just below is 200-day moving average, which is neutral trendwise. This stock has been uptrending strong for the last month, with shares soaring higher from its low of $4.08 to its high of $5.16 a share. During that move, shares of KTOS have been mostly making higher lows and higher highs, which is bullish technical price action. That move has now pushed KTOS within range of triggering a near-term breakout trade.
If you're bullish on KTOS, then I would look for long-biased trades as long as this stock is trending above its 50-day at $4.59, and then once it breaks out above some near-term overhead resistance levels at $5.16 to $5.24 a share with high volume. Look for a sustained move or close above those levels with volume that hits near or above its three-month average action of 345,090 shares. If that breakout triggers, then KTOS will set up to re-test or possibly take out its next major overhead resistance levels at $5.97 to $6.19 a share.