Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CEO Sells 300,000 Shares of Stock

Key Points

• Kratos CEO Eric DeMarco sold 300,000 shares at an average price of $64.33, generating approximately $19.3 million. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his direct ownership by 28.26% to 761,632 shares.
• Kratos reported stronger-than-expected quarterly results, with revenue up 30.5% year over year to $458.8 million and EPS of $0.21 versus the $0.14 consensus estimate.
• Analysts remain broadly positive, with an overall “Moderate Buy” rating and an average price target of $99.47, although the stock’s very high valuation and modest profitability present execution and downside risks.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CEO Eric Demarco sold 300,000 shares of the firm'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 transaction, the chief executive officer directly owned 761,632 shares of the company's stock, valued at approximately $48,995,786.56. The trade was a 28.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Up 2.9%

NASDAQ:KTOS traded up $1.79 during midday trading on Friday, reaching $64.58. The company had a trading volume of 5,441,080 shares, compared to its average volume of 3,938,427. Kratos Defense & Security Solutions, Inc. has a 12-month low of $43.09 and a 12-month high of $134.00. The firm has a market capitalization of $12.12 billion, a price-to-earnings ratio of 379.88 and a beta of 1.08. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The stock's fifty day simple moving average is $52.48 and its 200-day simple moving average is $68.56.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.Kratos Defense & Security Solutions's revenue was up 30.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.11 EPS. On average, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $25,000. Atlantic Union Bankshares Corp raised its stake in Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after acquiring an additional 380 shares in the last quarter. Murphy & Mullick Capital Management Corp raised its stake in Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock worth $32,000 after acquiring an additional 225 shares in the last quarter. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after acquiring an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new stake in Kratos Defense & Security Solutions in the fourth quarter valued at $37,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on KTOS shares. UBS Group reiterated a "neutral" rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Stifel Nicolaus reduced their price objective on shares of Kratos Defense & Security Solutions from $134.00 to $115.00 and set a "buy" rating on the stock in a report on Thursday, August 6th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, July 28th. 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. Finally, Royal Bank Of Canada dropped their target price on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a report on Thursday, May 7th. One 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 assigned a Sell rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of "Moderate Buy" and an average 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.

About Kratos Defense & Security Solutions

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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