Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.7% Following Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price was down 1.7% during mid-day trading on Wednesday following insider selling activity. The stock traded as low as $46.08 and last traded at $46.16. Approximately 2,988,255 shares were traded during mid-day trading, a decline of 31% from the average daily volume of 4,331,682 shares. The stock had previously closed at $46.97.

Specifically, CFO Deanna H. Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, September 21st. The stock was sold at an average price of $48.78, for a total value of $341,460.00. Following the sale, the chief financial officer directly owned 273,511 shares of the company’s stock, valued at approximately $13,341,866.58. The trade was a 2.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 6,500 shares of the business’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $47.83, for a total value of $310,895.00. Following the completion of the sale, the insider owned 175,653 shares in the company, valued at $8,401,482.99. This represents a 3.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In related news, SVP Marie Mendoza sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $48.50, for a total transaction of $48,500.00. Following the completion of the transaction, the senior vice president directly owned 61,200 shares of the company’s stock, valued at approximately $2,968,200. This represents a 1.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research firms have issued reports on KTOS. The Goldman Sachs Group reduced their price objective on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research note on Tuesday, July 14th. JPMorgan Chase & Co. upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and reduced their price target for the stock from $99.00 to $82.00 in a research report on Friday, June 12th. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. BTIG Research lifted their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Finally, Jefferies Financial Group set a $105.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $98.06.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos remains positioned in the expanding unmanned-systems market, alongside Draganfly, although the companies have different growth strategies. Continued demand for drones and related defense technologies supports the long-term investment case for KTOS. Kratos Defense vs. Draganfly: Which Drone Stock Has More Potential?
• Neutral Sentiment: A Buffalo Mid Cap Discovery Fund investor letter cited moderation in the defense sector as a factor weighing on Kratos. The report reflects broader sector sentiment rather than a new contract, earnings revision, or change in company fundamentals. Defense Sector Moderation Weighs on Kratos Defense & Security Solutions
• Neutral Sentiment: Reports showed no reported short interest as of September 24, implying that short sellers were not a significant measurable source of pressure. However, the unusual zero-share figure may reflect a data or reporting issue, limiting its usefulness as a trading signal.
• Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $341,460, reducing her holdings by 2.5%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which weakens its significance as a fundamental warning, but insider selling can still weigh on investor sentiment. SEC insider transaction filing

Kratos Defense & Security Solutions Stock Down 3.0%

The company has a market cap of $8.56 billion, a PE ratio of 268.35 and a beta of 1.11. The company has a fifty day moving average of $51.64 and a two-hundred day moving average of $59.31. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54.

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

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds have recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its position in shares of Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock valued at $337,565,000 after buying an additional 148,622 shares during the period. Clearbridge Investments LLC raised its holdings in shares of Kratos Defense & Security Solutions by 48.5% in the fourth quarter. Clearbridge Investments LLC now owns 1,458,084 shares of the aerospace company’s stock worth $110,683,000 after buying an additional 476,049 shares during the period. Bank of New York Mellon Corp raised its holdings in shares of Kratos Defense & Security Solutions by 12.2% in the first quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock worth $106,893,000 after buying an additional 164,607 shares during the period. Goldman Sachs Group Inc. lifted its stake in shares of Kratos Defense & Security Solutions by 66.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,398,525 shares of the aerospace company’s stock worth $106,162,000 after acquiring an additional 556,036 shares during the last quarter. Finally, Norges Bank purchased a new position in Kratos Defense & Security Solutions during the 4th quarter valued at $104,807,000. 75.92% of the stock is currently owned by institutional investors.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.