Bank of America Corp DE Sells 27,029 Shares of Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• Bank of America reduced its Kratos stake by 5.6%, selling 27,029 shares and retaining 458,416 shares valued at approximately $32.3 million. Institutional investors collectively own 75.92% of the company.
• Kratos reported stronger-than-expected quarterly results, with revenue rising 30.5% year over year to $458.8 million and EPS of $0.21 versus the $0.14 consensus estimate.
• Analysts maintain a generally bullish outlook, with a consensus “Moderate Buy” rating and $99.47 price target, although insider selling and Kratos’s high valuation relative to its modest profitability present risks.

Bank of America Corp DE lowered its position in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 5.6% in the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The institutional investor owned 458,416 shares of the aerospace company's stock after selling 27,029 shares during the quarter. Bank of America Corp DE owned approximately 0.24% of Kratos Defense & Security Solutions worth $32,323,000 at the end of the most recent quarter.

Several other institutional investors have also recently added to or reduced their stakes in the company. Geode Capital Management LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 3.5% in the 4th quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company's stock worth $337,565,000 after acquiring an additional 148,622 shares in the last quarter. Morgan Stanley grew its position in Kratos Defense & Security Solutions by 3.9% during the 4th quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company's stock worth $251,345,000 after acquiring an additional 124,607 shares during the last quarter. Invesco Ltd. increased its holdings in Kratos Defense & Security Solutions by 7.4% during the 3rd quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company's stock valued at $278,331,000 after purchasing an additional 209,189 shares in the last quarter. Northern Trust Corp raised its position in Kratos Defense & Security Solutions by 13.6% in the 3rd quarter. Northern Trust Corp now owns 2,072,700 shares of the aerospace company's stock valued at $189,383,000 after purchasing an additional 247,652 shares during the last quarter. Finally, Corient Private Wealth LLC raised its position in Kratos Defense & Security Solutions by 7,701.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company's stock valued at $120,966,000 after purchasing an additional 1,573,123 shares during the last quarter. 75.92% of the stock is owned by institutional investors.

Insider Activity at Kratos Defense & Security Solutions

In related news, CEO Eric M. Demarco sold 300,000 shares of the business's stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the sale, the chief executive officer directly owned 761,632 shares of the company's stock, valued at $48,995,786.56. The trade was a 28.26% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Deanna H. Lund sold 5,000 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $48.55, for a total transaction of $242,750.00. Following the completion of the transaction, the chief financial officer owned 280,487 shares in the company, valued at $13,617,643.85. This represents a 1.75% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 433,523 shares of company stock worth $26,783,747 over the last 90 days. Insiders own 1.50% of the company's stock.

Kratos Defense & Security Solutions Trading Up 2.9%

KTOS stock opened at $64.58 on Friday. 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, Inc. has a twelve month low of $43.09 and a twelve month high of $134.00. The company has a market cap of $12.12 billion, a P/E ratio of 379.88 and a beta of 1.08. The business has a fifty day moving average of $52.48 and a 200-day moving average of $68.56.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted 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. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The business had revenue of $458.80 million for the quarter, compared to analysts' expectations of $410.36 million. During the same quarter last year, the business earned $0.11 earnings per share. The firm's quarterly revenue was up 30.5% compared to the same quarter last year. As a group, equities research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current year.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on KTOS. Cantor Fitzgerald decreased their target price on Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating on the stock in a report on Tuesday, August 4th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, July 28th. Piper Sandler upgraded shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price target on the stock in a research report on Wednesday, August 5th. JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and decreased their price objective for the stock from $99.00 to $82.00 in a report on Friday, June 12th. Finally, UBS Group restated a "neutral" rating and issued a $82.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. One research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $99.47.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos is reported to have a potential $15 billion opportunity pipeline. Continued defense spending and new contract awards could expand its backlog, revenue, and long-term growth prospects. Can Kratos Defense's $15B Opportunity Pipeline Sustain Growth Momentum?
• Positive Sentiment: Reports from Kratos’s second-quarter earnings call highlighted accelerating demand across its hypersonics, jet-engine, and defense-support businesses. Management said investments in scalable, affordable manufacturing are positioning the company to pursue more Department of Defense contracts. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
• Positive Sentiment: Kratos is participating in a broader rally in drone and defense stocks after new U.S. tariffs on imported drones and components. The policy could improve the competitive position of domestic defense-drone suppliers and increase interest in U.S.-based production. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: Kratos recently exceeded quarterly expectations, reporting $458.8 million in revenue and $0.21 in earnings per share versus consensus estimates of $410.4 million and $0.14, respectively. Revenue increased 30.5% year over year, reinforcing the growth narrative.
• Neutral Sentiment: Analysts are offering updated forecasts for Kratos’s fiscal 2026 earnings, which may influence expectations as investors assess how quickly the opportunity pipeline converts into funded contracts and profit.
• Negative Sentiment: The bullish outlook carries execution risk. Kratos trades at a very high earnings multiple, while its reported net margin and return on equity remain modest; delays in contract awards or weaker-than-expected cash generation could make the valuation harder to justify.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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