Canal Insurance CO Sells 63,800 Shares of Kratos Defense & Security Solutions, Inc. $KTOS

Key Points

• Canal Insurance CO cut its position in Kratos by 36.7%, selling 63,800 shares and retaining 110,000 shares (about 2.0% of its portfolio), valued at roughly $8.35 million and ranking as its 17th largest holding.
• Kratos beat Q1 expectations (adjusted EPS $0.16 vs. $0.13; revenue $371M, +22.6% YoY) and raised FY‑2026 guidance to $1.70B–$1.76B in revenue and $170M–$176M adjusted EBITDA, while projecting production of about 40 Valkyrie unmanned aircraft annually by early 2028.
• Despite the beats, KTOS shares fell about 7.3% after investors noted continued cash burn and a Q2 guide ($400M–$410M) that disappointed some expectations, and insiders have been selling (169,027 shares sold over the last 90 days).

Canal Insurance CO decreased its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Free Report) by 36.7% in the fourth quarter, according to its most recent Form 13F filing with the SEC. The firm owned 110,000 shares of the aerospace company's stock after selling 63,800 shares during the period. Kratos Defense & Security Solutions accounts for about 2.0% of Canal Insurance CO's investment portfolio, making the stock its 17th biggest position. Canal Insurance CO owned approximately 0.07% of Kratos Defense & Security Solutions worth $8,350,000 at the end of the most recent reporting period.

Other large investors have also recently modified their holdings of the company. Rakuten Securities Inc. purchased a new stake in shares of Kratos Defense & Security Solutions in the second quarter valued at approximately $31,000. Bayforest Capital Ltd purchased a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. Caitlin John LLC purchased a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. Accredited Wealth Management LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 193.5% in the third quarter. Accredited Wealth Management LLC now owns 408 shares of the aerospace company's stock valued at $37,000 after purchasing an additional 269 shares during the period. Finally, Whittier Trust Co. purchased a new stake in shares of Kratos Defense & Security Solutions in the third quarter valued at approximately $38,000. Hedge funds and other institutional investors own 75.92% of the company's stock.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Q1 results beat expectations — adjusted EPS $0.16 vs. $0.13 est., revenue $371M (+22.6% YoY), and management raised FY‑2026 revenue guidance to $1.70B–$1.76B and adjusted EBITDA to $170M–$176M; backlog and bookings also strengthened, supporting medium‑term growth. Kratos Reports First Quarter 2026 Financial Results and Increases Fiscal FY26 Financial Guidance
• Positive Sentiment: Production ramp visibility: Kratos is projecting roughly 40 Valkyrie unmanned aircraft annually by early 2028, boosting revenue runway for the Unmanned Systems segment. Kratos projects $1.7B-$1.760B 2026 revenue as it plans ~40 Valkyries annually by early 2028
• Positive Sentiment: Analyst thesis: some analysts highlight meaningful upside from continued Pentagon defense spending momentum and Kratos’s exposure to unmanned and missile‑support markets. KTOS stock in spotlight: Analyst sees 37% upside on Pentagon’s defense spending momentum
• Neutral Sentiment: Some analysts updated targets: BNP Paribas Exane raised its price target to $85 while keeping a "neutral" rating — a modest positive signal but not a buy endorsement. Benzinga
• Neutral Sentiment: BTIG and other firms revised targets/rating mixes (BTIG's target changed but maintained buy) — reflecting differing views on growth vs. valuation that may sustain intraday volatility. Benzinga
• Neutral Sentiment: Full earnings/management commentary is available in the Q1 call transcript for investors wanting detail on backlog, book‑to‑bill and the $14B opportunity pipeline cited by management. Kratos Q1 2026 Earnings Call Transcript
• Negative Sentiment: Piper Sandler cut its price target to $75 (neutral rating) and other shops trimmed targets — downward revisions increase near‑term downside risk if sentiment shifts. Benzinga
• Negative Sentiment: Market reaction drivers: despite beats, the stock pulled back today as investors flagged continued cash burn and a Q2 revenue guide ($400M–$410M) that was roughly flat-to-slightly below some expectations — prompting profit‑taking. Why Kratos Stock Just Dropped Kratos Delivers Strong Q1 — Next Quarter Guidance Slightly Below Expectations
• Negative Sentiment: Insider selling: Kratos CFO sold 5,000 shares under a pre‑arranged 10b5‑1 plan — a small disclosed sale that some traders interpret as a cautionary signal. SEC Filing: Insider Sale

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on KTOS. Weiss Ratings reiterated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. B. Riley Financial boosted their price target on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a "buy" rating in a report on Friday, January 9th. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Royal Bank Of Canada lowered their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a report on Thursday. Finally, KeyCorp boosted their price target on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the company an "overweight" rating in a report on Wednesday, January 28th. Three equities research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $97.67.

Kratos Defense & Security Solutions Stock Down 7.3%

Kratos Defense & Security Solutions stock opened at $57.00 on Friday. The business has a fifty day moving average of $76.46 and a two-hundred day moving average of $84.41. The company has a quick ratio of 3.46, a current ratio of 4.06 and a debt-to-equity ratio of 0.05. The firm has a market cap of $10.68 billion, a P/E ratio of 335.29 and a beta of 1.06. Kratos Defense & Security Solutions, Inc. has a twelve month low of $32.85 and a twelve month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The company had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 3.33% and a net margin of 2.08%.Kratos Defense & Security Solutions's revenue was up 22.6% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.12 earnings per share. On average, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Steven S. Fendley sold 7,000 shares of the company's stock in a transaction on Monday, April 27th. The stock was sold at an average price of $61.64, for a total transaction of $431,480.00. Following the completion of the sale, the insider owned 351,039 shares in the company, valued at $21,638,043.96. This represents a 1.96% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Scot B. Jarvis sold 5,417 shares of the company's stock in a transaction on Thursday, April 16th. The stock was sold at an average price of $75.90, for a total value of $411,150.30. Following the sale, the director owned 75,123 shares of the company's stock, valued at approximately $5,701,835.70. This represents a 6.73% decrease in their position. 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 169,027 shares of company stock valued at $13,522,040 over the last 90 days. Insiders own 1.50% 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.

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