Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider Sells 26,500 Shares

Key Points

• Insider sale: Kratos insider Phillip Carrai sold 26,500 shares for approximately $1.68 million under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 12.7% to 182,084 shares.
• Strong quarterly performance: Kratos reported adjusted earnings of $0.21 per share versus the $0.14 consensus estimate, while revenue rose 30.5% year over year to $458.8 million.
• Valuation and outlook: Shares recently traded near $60.56, with a very high P/E ratio of 356.24. Analysts maintain a “Moderate Buy” consensus and an average price target of $99.47, although profitability and growth expectations remain key risks.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Phillip Carrai sold 26,500 shares of the company's stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $63.25, for a total transaction of $1,676,125.00. Following the completion of the sale, the insider directly owned 182,084 shares of the company's stock, valued at $11,516,813. The trade was a 12.70% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Price Performance

Kratos Defense & Security Solutions stock traded down $1.43 during trading hours on Wednesday, hitting $60.56. 2,841,062 shares of the company traded hands, compared to its average volume of 4,455,079. The firm has a market cap of $11.37 billion, a P/E ratio of 356.24 and a beta of 1.08. The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04. The firm's 50-day simple moving average is $52.71 and its two-hundred day simple moving average is $67.52. Kratos Defense & Security Solutions, Inc. has a 1-year low of $43.09 and a 1-year high of $134.00.

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 EPS for the quarter, topping analysts' consensus estimates 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 net margin of 2.03% and a return on equity of 3.07%. Kratos Defense & Security Solutions's revenue was up 30.5% on a year-over-year basis. During the same period in the previous year, the firm earned $0.11 EPS. As a group, analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several hedge funds have recently modified their holdings of the stock. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions during the fourth quarter valued at about $25,000. Atlantic Union Bankshares Corp grew its position 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 purchasing 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 valued at $32,000 after purchasing an additional 225 shares during the period. Vision Retirement LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after purchasing an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. acquired a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter worth $37,000. 75.92% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos received multi-million-dollar orders for GAIA 100 5.5-meter and 6.1-meter tri-band ground-station systems through its newly acquired Orbit business. The orders indicate growing demand for S/X/Ka-band satellite communications and tracking capabilities. Kratos Receives Multi-Million-Dollar Orders for GAIA 100 Tri-Band Ground Station Systems Through Newly Acquired Orbit
• Positive Sentiment: A recent analysis highlighted Kratos’ strong second quarter: revenue increased 30.5% year over year to $458.8 million, EPS exceeded expectations, and organic growth reached 19.1%. Defense rocket support, turbine technology and microwave products were particularly strong, supporting the company’s growth narrative. Kratos: A Production Powerhouse That No Longer Feels Speculative
• Positive Sentiment: A USMC Valkyrie unmanned aircraft successfully demonstrated electronic-warfare capabilities and beyond-line-of-sight command and control during testing. The milestone reinforces Kratos’ position in collaborative combat aircraft and advanced unmanned systems. USMC Valkyrie Demonstrates Beyond-Line-Of-Sight Command and Control in Flight at U.S. Navy Test Range
• Neutral Sentiment: Commentary comparing Kratos with Nokia described KTOS as a higher-growth defense investment focused on unmanned aerial systems and hypersonics, while Nokia offers greater stability and free-cash-flow generation. The comparison provides context but no new company-specific catalyst. Kratos Defense vs. Nokia: Is Defense or Telecom a Better Stock Buy in 2026?
• Negative Sentiment: Insider selling was reported as a source of pressure, potentially raising concerns about near-term sentiment even though the company continues to announce new business wins. Kratos Trading Down Following Insider Selling
• Negative Sentiment: Analysts remain concerned that KTOS is priced for substantial long-term growth. With a high earnings multiple and relatively modest profitability, the stock may be vulnerable if margin expansion or growth falls short of investor expectations. Kratos: A Cautious Buy At The Inflection Point, Hinged On Margin Improvement

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the company. Clear Str raised Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. Wedbush assumed coverage on shares of Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They issued an "outperform" rating and a $85.00 price target on the stock. UBS Group restated a "neutral" rating and set a $82.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Stifel Nicolaus lowered 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 research note on Thursday, August 6th. Finally, Cantor Fitzgerald dropped their target price on shares of 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. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $99.47.

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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