Is Kratos Defense & Security Solutions, Inc (KTOS) A Good Stock to Buy?

As one would reasonably expect, some big names have jumped into Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) headfirst. Citadel Investment Group created the largest position in Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), holding a $0.5 million invested in the company at the end of the third quarter. Joshua Packwood and Schuster Tanger’s Radix Partners also made a $0.4 million investment in the stock during the quarter. The only other fund with a new position in the stock was Mike Vranos’ Ellington.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) but similarly valued. We will take a look at Carbonite Inc (NASDAQ:CARB), QCR Holdings, Inc. (NASDAQ:QCRH), Federal Agricultural Mortgage Corp. (NYSE:AGM), and Suffolk Bancorp (NYSE:SCNB). This group of stocks’ market values are similar to KTOS’s market value.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $42 million in KTOS’s case. Carbonite Inc (NASDAQ:CARB) is the most popular stock in this table. On the other hand QCR Holdings, Inc. (NASDAQ:QCRH) is the least popular one with only 6 bullish hedge fund positions. Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CARB might be a better candidate to consider taking a long position in.

Disclosure: None