Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) Director Sells $635,000.00 in Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Director Scot Jarvis sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 18th. The stock was sold at an average price of $63.50, for a total value of $635,000.00. Following the completion of the transaction, the director directly owned 65,123 shares of the company’s stock, valued at approximately $4,135,310.50. This trade represents a 13.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink.

Kratos Defense & Security Solutions Stock Performance

Shares of NASDAQ KTOS opened at $57.17 on Friday. The firm’s 50-day moving average price is $52.76 and its 200-day moving average price is $66.79. Kratos Defense & Security Solutions, Inc. has a 52-week low of $43.09 and a 52-week high of $134.00. The company has a market cap of $10.73 billion, a PE ratio of 336.29 and a beta of 1.08. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million during the quarter, compared to analysts’ expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm’s quarterly revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the company earned $0.11 earnings per share. As a group, analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

More Kratos Defense & Security Solutions News

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: President Trump’s new tariffs on foreign drones and related components could give U.S. manufacturers, including Kratos, a competitive policy advantage by redirecting demand toward domestic suppliers. China’s objections to the tariffs underscore the potential importance of the measure. Trump’s New Drone Tariffs Give AeroVironment, Kratos and Red Cat a Policy Tailwind
• Positive Sentiment: Investor focus remains on Kratos’ expansion phase. The company reportedly has a $2.08 billion backlog and is increasing production capacity through 2028 to meet defense demand, particularly in unmanned systems, hypersonics and satellite communications. Is Kratos Defense Entering the Scale-Up Phase of Defense Modernization?
• Positive Sentiment: Recent quarterly results provide fundamental support: revenue rose 30.5% year over year to $458.8 million, while EPS of $0.21 exceeded the $0.14 consensus estimate. The strong results and ongoing defense modernization demand help explain renewed interest in KTOS. Drone Trade Rebound
• Neutral Sentiment: The broader drone-stock rebound may be fragile after a sharp selloff, leaving KTOS vulnerable to continued volatility and profit-taking.
• Negative Sentiment: Director Scot Jarvis sold 10,000 shares for approximately $635,000, following other insider sales. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing its value as a discretionary bearish signal, but the lack of reported open-market insider purchases may weigh on sentiment. Scot Jarvis Insider Sale
• Negative Sentiment: Kratos trades at a very elevated earnings multiple, so investors may demand sustained growth, production execution and margin improvement. Any disappointment could have an outsized effect on the stock.

Analysts Set New Price Targets

Several research firms have recently weighed in on KTOS. Truist Financial lowered their price target on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating on the stock in a report on Thursday, August 13th. Piper Sandler raised Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price objective for the company in a report on Wednesday, August 5th. Jefferies Financial Group set a $105.00 price objective on Kratos Defense & Security Solutions in a research report on Wednesday, August 5th. BNP Paribas Exane increased their target price on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Finally, Citizens Jmp dropped their target price on Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a research report on Friday, May 8th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $99.47.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the business. Royal Bank of Canada increased its stake in shares of Kratos Defense & Security Solutions by 22.6% in the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after purchasing an additional 35,098 shares in the last quarter. Amundi purchased a new position in Kratos Defense & Security Solutions during the first quarter valued at $791,000. NewEdge Advisors LLC lifted its position in Kratos Defense & Security Solutions by 64.4% during the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock valued at $39,000 after purchasing an additional 515 shares in the last quarter. Jones Financial Companies Lllp grew its holdings in Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock valued at $108,000 after purchasing an additional 2,286 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Kratos Defense & Security Solutions by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock valued at $11,686,000 after purchasing an additional 41,265 shares during the period. 75.92% of the stock is currently owned by institutional investors.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.