Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CFO Sells 5,000 Shares of Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) CFO Deanna Lund sold 5,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $48.55, for a total value of $242,750.00. Following the sale, the chief financial officer owned 280,487 shares in the company, valued at $13,617,643.85. The trade was a 1.75% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Performance

KTOS traded up $3.47 during trading on Wednesday, reaching $55.34. 9,191,001 shares of the company were exchanged, compared to its average volume of 3,587,887. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The stock has a market cap of $10.38 billion, a P/E ratio of 325.53 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a 52 week low of $43.09 and a 52 week high of $134.00. The firm has a 50 day moving average of $52.50 and a 200 day moving average of $71.15.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million during the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.37%. The company’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same quarter in the previous year, the company posted $0.11 earnings per share. On average, sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Second-quarter results beat expectations. Kratos reported adjusted earnings of $0.21 per share, up from $0.11 a year earlier and above the roughly $0.13-$0.14 consensus. Revenue rose 30.5% year over year to $458.8 million, exceeding estimates near $410 million. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Kratos Government Solutions revenue increased 36.4% to $379.7 million, while Unmanned Systems revenue rose 8.1% to $79.1 million. Management cited demand across hypersonics, space, jet engines, counter-drone systems and unmanned aircraft, along with strong bookings. Kratos Defense Q2 Earnings and Revenues Outpace Estimates
• Positive Sentiment: Management raised its outlook. Full-year 2026 revenue guidance was lifted to approximately $1.8 billion, above the roughly $1.7 billion analyst consensus, with projected organic revenue growth of 19%-23%. Kratos also outlined plans to produce 3,000 Spartan engines in 2027. Kratos 2026 Organic Growth Forecast
• Positive Sentiment: Analyst sentiment improved. Piper Sandler upgraded KTOS, citing a buying opportunity, while BTIG raised its price target to $104 and maintained a Buy rating. The upgrades reinforce the view that the earnings beat and raised outlook may have been overly discounted by the market. Kratos Defense Upgraded at Piper Sandler
• Neutral Sentiment: Near-term guidance was roughly in line. Third-quarter revenue guidance of $460 million-$480 million brackets the $462.8 million consensus estimate, suggesting continued growth but limited immediate upside from the next-quarter forecast. Kratos Defense Rallies on Results and Upgrade
• Neutral Sentiment: Call-option activity was elevated, with 13,877 contracts purchased versus average daily volume of 10,153, indicating increased bullish speculation but not a fundamental change in the business.
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $115 to $100, although it retained an Overweight rating. Kratos also continues to trade at a demanding valuation, making the stock sensitive to any slowdown in growth or execution.

Analyst Ratings Changes

Several research analysts have commented on KTOS shares. BNP Paribas Exane upped their target price on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a “neutral” rating in a research report on Thursday, May 7th. BTIG Research lifted their price target on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a “buy” rating in a report on Wednesday. Jefferies Financial Group set a $105.00 price objective on Kratos Defense & Security Solutions in a research report on Wednesday. Cantor Fitzgerald decreased their price objective on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating for the company in a report on Tuesday. Finally, Clear Str upgraded Kratos Defense & Security Solutions to a “strong-buy” rating in a research report on Wednesday, April 29th. Three investment analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the company currently has a consensus rating of “Buy” and an average price target of $102.41.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Large investors have recently bought and sold shares of the stock. Royal Bank of Canada lifted 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 acquiring an additional 35,098 shares during the period. Amundi acquired a new position in shares of Kratos Defense & Security Solutions during the first quarter valued at approximately $791,000. NewEdge Advisors LLC raised its holdings 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 worth $39,000 after purchasing an additional 515 shares in the last quarter. Jones Financial Companies Lllp lifted its position in Kratos Defense & Security Solutions by 178.0% in the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock worth $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 lifted its position in Kratos Defense & Security Solutions by 11.7% in 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 worth $11,686,000 after purchasing an additional 41,265 shares during the period. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.