Kratos Defense & Security Solutions (NASDAQ:KTOS) CFO Deanna Lund Sells 5,000 Shares of Stock

Key Points

• CFO Deanna Lund sold 5,000 Kratos shares for approximately $242,750 under a pre-arranged Rule 10b5-1 plan, reducing her direct ownership by 1.75% to 280,487 shares.
• Kratos reported a strong quarter, with adjusted EPS of $0.21 versus the $0.14 analyst consensus and revenue of $458.8 million, up 30.5% year over year and well above estimates.
• Shares rose 6.7% to $55.34, while analysts maintained a generally positive outlook: the stock carries a consensus “Buy” rating and an average price target of $102.41, despite its demanding valuation.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CFO Deanna Lund sold 5,000 shares of the business's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $48.55, for a total value of $242,750.00. Following the transaction, the chief financial officer directly owned 280,487 shares in the company, valued at $13,617,643.85. This trade represents a 1.75% 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 Up 6.7%

NASDAQ KTOS traded up $3.47 on Wednesday, reaching $55.34. The company had a trading volume of 9,191,001 shares, compared to its average volume of 3,587,887. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.63 and a quick ratio of 5.08. Kratos Defense & Security Solutions, Inc. has a 1 year low of $43.09 and a 1 year high of $134.00. The firm has a 50-day moving average of $52.50 and a 200-day moving average of $71.15. The firm has a market capitalization of $10.38 billion, a PE ratio of 325.53 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.37%. The company had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. During the same quarter last year, the firm posted $0.11 earnings per share. The business's quarterly revenue was up 30.5% on a year-over-year basis. On average, equities research analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.48 EPS for the current fiscal year.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Second-quarter results beat expectations. Kratos reported adjusted earnings of $0.21 per share, up from $0.11 a year earlier and above the roughly $0.13-$0.14 consensus. Revenue rose 30.5% year over year to $458.8 million, exceeding estimates near $410 million. Kratos Reports Second Quarter 2026 Financial Results
• Positive Sentiment: Growth was broad-based. Kratos Government Solutions revenue increased 36.4% to $379.7 million, while Unmanned Systems revenue rose 8.1% to $79.1 million. Management cited demand across hypersonics, space, jet engines, counter-drone systems and unmanned aircraft, along with strong bookings. Kratos Defense Q2 Earnings and Revenues Outpace Estimates
• Positive Sentiment: Management raised its outlook. Full-year 2026 revenue guidance was lifted to approximately $1.8 billion, above the roughly $1.7 billion analyst consensus, with projected organic revenue growth of 19%-23%. Kratos also outlined plans to produce 3,000 Spartan engines in 2027. Kratos 2026 Organic Growth Forecast
• Positive Sentiment: Analyst sentiment improved. Piper Sandler upgraded KTOS, citing a buying opportunity, while BTIG raised its price target to $104 and maintained a Buy rating. The upgrades reinforce the view that the earnings beat and raised outlook may have been overly discounted by the market. Kratos Defense Upgraded at Piper Sandler
• Neutral Sentiment: Near-term guidance was roughly in line. Third-quarter revenue guidance of $460 million-$480 million brackets the $462.8 million consensus estimate, suggesting continued growth but limited immediate upside from the next-quarter forecast. Kratos Defense Rallies on Results and Upgrade
• Neutral Sentiment: Call-option activity was elevated, with 13,877 contracts purchased versus average daily volume of 10,153, indicating increased bullish speculation but not a fundamental change in the business.
• Negative Sentiment: Cantor Fitzgerald lowered its price target from $115 to $100, although it retained an Overweight rating. Kratos also continues to trade at a demanding valuation, making the stock sensitive to any slowdown in growth or execution.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Large investors have recently modified their holdings of the stock. Greenleaf Trust raised its stake in Kratos Defense & Security Solutions by 2.7% during the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock valued at $291,000 after buying an additional 100 shares in the last quarter. CENTRAL TRUST Co lifted its stake in Kratos Defense & Security Solutions by 7.3% during the fourth quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company's stock worth $129,000 after purchasing an additional 115 shares during the last quarter. Quadrant Capital Group LLC boosted its holdings in Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock worth $449,000 after purchasing an additional 122 shares during the period. Parkside Financial Bank & Trust increased its stake in Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock valued at $148,000 after purchasing an additional 125 shares during the last quarter. Finally, Northwestern Mutual Investment Management Company LLC raised its holdings in shares of Kratos Defense & Security Solutions by 0.4% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 37,776 shares of the aerospace company's stock worth $2,868,000 after purchasing an additional 153 shares during the period. Institutional investors own 75.92% of the company's stock.

Analyst Upgrades and Downgrades

Several analysts have recently weighed in on KTOS shares. Wedbush began coverage on Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They set an "outperform" rating and a $85.00 target price for the company. Piper Sandler upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and set a $75.00 price target on the stock in a research note on Wednesday. Citizens Jmp lowered their price objective on 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. JPMorgan Chase & Co. upgraded Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and dropped their price objective for the stock from $99.00 to $82.00 in a report on Friday, June 12th. Finally, Canaccord Genuity Group set a $135.00 target price on Kratos Defense & Security Solutions in a research report on Wednesday. Three research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Buy" and a consensus price target of $102.41.

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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