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

Key Points

• Insider sale: Kratos Defense & Security Solutions insider Steven Fendley sold 7,000 shares on May 26 at an average price of $57.24, totaling about $400,680. The sale was made under a pre-arranged Rule 10b5-1 plan.
• Stock performance: KTOS shares were up 13.8% in the session described, trading as high as $65.19 on heavy volume. The company’s stock has a wide 52-week range, reflecting notable volatility.
• Business and outlook: Kratos beat quarterly earnings and revenue estimates, with revenue up 22.6% year over year. Analysts remain broadly positive, with a Moderate Buy consensus and an average price target of $96.28.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Steven Fendley sold 7,000 shares of the firm's stock in a transaction dated Tuesday, May 26th. The stock was sold at an average price of $57.24, for a total transaction of $400,680.00. Following the completion of the sale, the insider directly owned 344,090 shares of the company's stock, valued at approximately $19,695,711.60. The trade was a 1.99% decrease in their position. The sale was disclosed in a legal 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 Up 13.8%

NASDAQ KTOS traded up $7.89 during trading on Thursday, hitting $65.19. The stock had a trading volume of 11,302,738 shares, compared to its average volume of 4,108,288. The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The stock has a market capitalization of $12.22 billion, a price-to-earnings ratio of 383.47 and a beta of 1.06. Kratos Defense & Security Solutions, Inc. has a one year low of $35.88 and a one year high of $134.00. The stock has a 50 day simple moving average of $66.49 and a 200 day simple moving average of $81.17.

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

Wall Street Analysts Forecast Growth

Several analysts have issued reports on KTOS shares. BTIG Research decreased their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Jefferies Financial Group set a $80.00 price target on shares of Kratos Defense & Security Solutions in a research note on Sunday, May 10th. BNP Paribas Exane lifted their price target on shares of Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a "neutral" rating in a research note on Thursday, May 7th. Citigroup reaffirmed a "market outperform" rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, February 24th. Finally, Citizens Jmp decreased their price target on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a "market outperform" rating for the company in a research note on Friday, May 8th. Three analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and a consensus price target of $96.28.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Large investors have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. bought a new position in Kratos Defense & Security Solutions in the fourth quarter worth approximately $25,000. Atlantic Union Bankshares Corp raised its stake in Kratos Defense & Security Solutions by 7,600.0% in the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock worth $29,000 after buying an additional 380 shares in the last quarter. Vision Retirement LLC raised its stake in Kratos Defense & Security Solutions by 288.2% in the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock worth $30,000 after buying an additional 317 shares in the last quarter. Rakuten Securities Inc. bought a new position in Kratos Defense & Security Solutions in the second quarter worth approximately $31,000. Finally, Caitlin John LLC bought a new position in Kratos Defense & Security Solutions in the third quarter worth approximately $32,000. Institutional investors own 75.92% of the company's stock.

Trending Headlines about Kratos Defense & Security Solutions

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

• Positive Sentiment: KTOS was mentioned alongside other U.S. drone stocks that surged after reports of Pentagon-backed funding talks, which could signal stronger strategic and financial support for the domestic drone industry. Drone Stocks Jump As Trump Administration Pursues Funding Deals
• Positive Sentiment: Unusually heavy call option buying in Kratos suggests traders are positioning for more upside, reinforcing bullish sentiment around the stock.
• Positive Sentiment: News flow around the government potentially investing in drone manufacturers is drawing speculative interest into defense-drone names like KTOS. Trump Invested in Intel And it Soared 500%. Here's the Next Industry the Government is Buying.
• Neutral Sentiment: Multiple insiders sold shares on May 26, including director Bobbi Doorenbos, Steven S. Fendley, and Jonah Adelman. While insider selling can weigh on sentiment, one sale was made under a pre-arranged 10b5-1 plan, and the transactions may be less meaningful than the broader industry catalyst.
• Neutral Sentiment: Short interest data showed no meaningful change in the reported figure, so it does not appear to be a major driver of the stock today.

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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