Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CFO Sells 7,000 Shares of Stock

Key Points

• Kratos CFO Deanna Lund sold 7,000 shares at an average price of $48.78, generating $341,460. The sale was made under a pre-arranged Rule 10b5-1 plan and reduced her direct ownership by 2.5%.
• KTOS shares fell 1.7% to $46.16, with the stock trading well below its 50-day and 200-day moving averages. The company has a market capitalization of approximately $8.67 billion and a high P/E ratio of 271.5.
• Kratos reported stronger-than-expected quarterly results, with EPS of $0.21 versus the $0.14 consensus estimate and revenue up 30.5% year over year to $458.8 million. Analysts maintain a consensus “Moderate Buy” rating and an average price target of $98.06.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CFO Deanna Lund sold 7,000 shares of the stock in a transaction that occurred on 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 transaction was disclosed in a filing with the SEC, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Down 1.7%

KTOS traded down $0.81 during trading on Wednesday, reaching $46.16. The company had a trading volume of 3,032,981 shares, compared to its average volume of 3,399,336. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. Kratos Defense & Security Solutions, Inc. has a 12 month low of $43.09 and a 12 month high of $134.00. The business's fifty day moving average price is $51.64 and its 200 day moving average price is $59.59. The company has a market cap of $8.67 billion, a P/E ratio of 271.53 and a beta of 1.11.

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

Institutional Trading of Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently added to or reduced their stakes in the company. Envestnet Portfolio Solutions Inc. lifted its stake in Kratos Defense & Security Solutions by 45.9% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 12,605 shares of the aerospace company's stock valued at $628,000 after acquiring an additional 3,965 shares during the last quarter. Sequoia Financial Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 29.8% during the 2nd quarter. Sequoia Financial Advisors LLC now owns 140,856 shares of the aerospace company's stock worth $7,023,000 after purchasing an additional 32,315 shares during the last quarter. Engineers Gate Manager LP increased its stake in shares of Kratos Defense & Security Solutions by 53.2% during the 2nd quarter. Engineers Gate Manager LP now owns 6,885 shares of the aerospace company's stock worth $343,000 after purchasing an additional 2,391 shares during the last quarter. Integrated Wealth Concepts LLC bought a new stake in shares of Kratos Defense & Security Solutions in the 2nd quarter valued at about $119,000. Finally, IFP Advisors Inc raised its holdings in shares of Kratos Defense & Security Solutions by 103.6% in the 2nd quarter. IFP Advisors Inc now owns 7,422 shares of the aerospace company's stock valued at $370,000 after purchasing an additional 3,777 shares during the period. 75.92% of the stock is owned by institutional investors.

Wall Street Analyst Weigh In

KTOS has been the topic of a number of research reports. Truist Financial cut 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. Canaccord Genuity Group lifted their target price on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. Wedbush started coverage on shares of Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They set an "outperform" rating and a $85.00 price target for the company. Jefferies Financial Group set a $105.00 target price on shares of Kratos Defense & Security Solutions in a report on Wednesday, August 5th. Finally, BTIG Research raised their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a "buy" rating in a report on Wednesday, August 5th. Two investment analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have issued a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat, Kratos Defense & Security Solutions currently has a consensus rating of "Moderate Buy" and an average target price of $98.06.

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.

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