Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider Sells 4,000 Shares of Stock

Key Points

• Insider sale: Kratos Defense & Security Solutions insider Stacey Rock sold 4,000 shares at an average price of $65.47, totaling about $261,880. The sale reduced Rock’s ownership by 22.35% and was made under a pre-arranged Rule 10b5-1 plan.
• Stock and earnings backdrop: KTOS shares fell 1.6% to $64.13 amid heavier-than-usual trading volume. The company recently beat earnings and revenue expectations, reporting $0.16 EPS on $371 million in revenue, with quarterly sales up 22.6% year over year.
• Analyst and investor sentiment: Wall Street remains generally positive, with a consensus rating of Moderate Buy and an average price target of $96.28. The article also notes strong institutional ownership and recent optimism tied to possible U.S. drone-sector funding support.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Stacey Rock sold 4,000 shares of the company's stock in a transaction on Thursday, May 28th. The shares were sold at an average price of $65.47, for a total value of $261,880.00. Following the completion of the sale, the insider owned 13,896 shares of the company's stock, valued at approximately $909,771.12. The trade was a 22.35% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Trading Down 1.6%

NASDAQ:KTOS traded down $1.06 during trading hours on Friday, hitting $64.13. The company had a trading volume of 10,032,630 shares, compared to its average volume of 4,387,156. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The company has a 50-day moving average of $66.49 and a 200 day moving average of $81.17. The company has a market cap of $12.03 billion, a P/E ratio of 377.24 and a beta of 1.06. Kratos Defense & Security Solutions, Inc. has a 1 year low of $35.88 and a 1 year high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.13 by $0.03. The company had revenue of $371.00 million during the quarter, compared to analysts' expectations of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm's quarterly revenue was up 22.6% on a year-over-year basis. During the same period in the prior year, the business earned $0.12 EPS. Sell-side analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 earnings per share for the current year.

Wall Street Analysts Forecast Growth

KTOS has been the topic of a number of research analyst reports. UBS Group reissued a "neutral" rating and issued a $82.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Jefferies Financial Group set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Sunday, May 10th. Citigroup reiterated a "market outperform" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, February 24th. Clear Str raised Kratos Defense & Security Solutions to a "strong-buy" rating in a research report on Wednesday, April 29th. Finally, Royal Bank Of Canada decreased their price target on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating on the stock in a research note on Thursday, May 7th. Three analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $96.28.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Reports that the U.S. government may fund or take equity stakes in domestic drone makers have raised hopes that Kratos could benefit from stronger demand, policy support, and a more favorable growth outlook. Kratos And US Drone Funding Talks Could Reshape Growth And Risk Profile
• Positive Sentiment: Heavy call-option buying suggests traders are positioning for additional upside tied to the drone-sector funding theme. Kratos Defense & Security Solutions Sees Unusually Large Options Volume NASDAQ: KTOS
• Neutral Sentiment: Several insiders recently sold shares, including director Bobbi Doorenbos and executives Steven S. Fendley and Jonah Adelman. While the sales can pressure sentiment, at least one was made under a pre-arranged 10b5-1 plan and does not necessarily indicate a change in fundamentals. Jonah Adelman insider sale details

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors have recently bought and sold shares of KTOS. Alliancebernstein L.P. grew its position in Kratos Defense & Security Solutions by 1,389.0% in the 3rd quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock valued at $247,409,000 after acquiring an additional 2,525,921 shares in the last quarter. Corient Private Wealth LLC grew 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 acquiring an additional 1,573,123 shares in the last quarter. Norges Bank acquired a new position in Kratos Defense & Security Solutions in the 4th quarter valued at about $104,807,000. Westfield Capital Management Co. LP acquired a new position in Kratos Defense & Security Solutions in the 3rd quarter valued at about $91,901,000. Finally, First Trust Advisors LP grew its position in Kratos Defense & Security Solutions by 29.5% in the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock valued at $280,402,000 after acquiring an additional 698,778 shares in the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

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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