Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider David Carter Sells 4,000 Shares

Key Points

• Insider sale: Kratos Defense & Security Solutions insider David Carter sold 4,000 shares at $58.00 each, totaling $232,000. The transaction was made under a pre-arranged Rule 10b5-1 plan and reduced his ownership by 5.12%.
• Strong quarterly results: The company reported Q1 EPS of $0.16, beating estimates of $0.13, on revenue of $371 million versus $345 million expected. Revenue rose 22.6% year over year.
• Analyst sentiment remains positive: Despite some lowered price targets, the stock still has a Moderate Buy consensus rating, with a consensus target price of $96.56. Several firms reiterated buy or strong-buy views after the earnings report.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider David Carter sold 4,000 shares of the stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $58.00, for a total transaction of $232,000.00. Following the sale, the insider directly owned 74,071 shares in the company, valued at $4,296,118. This trade represents a 5.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Performance

NASDAQ KTOS traded up $0.89 during mid-day trading on Friday, reaching $57.89. 4,309,273 shares of the stock were exchanged, compared to its average volume of 4,222,491. The business's 50 day moving average is $76.46 and its 200-day moving average is $84.41. Kratos Defense & Security Solutions, Inc. has a 1 year low of $32.85 and a 1 year high of $134.00. The company has a market capitalization of $10.85 billion, a P/E ratio of 340.53 and a beta of 1.06. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.46 and a current ratio of 4.06.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million for 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 3.33%. The firm's quarterly revenue was up 22.6% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.12 earnings per share. On average, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.58 EPS for the current fiscal year.

Analyst Ratings Changes

A number of research firms have weighed in on KTOS. Truist Financial upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Friday, May 1st. Royal Bank Of Canada decreased their target price on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a research report on Thursday. Canaccord Genuity Group boosted their price target on Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a report on Thursday. BNP Paribas Exane boosted their price target on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the stock a "neutral" rating in a report on Thursday. Finally, Piper Sandler cut their price target on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating for the company in a report on Thursday. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have issued a Hold rating to the stock. Based on data from MarketBeat, Kratos Defense & Security Solutions has a consensus rating of "Moderate Buy" and a consensus target price of $96.56.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Kratos reported Q1 revenue of $371 million and adjusted EPS of $0.16, both ahead of expectations, while also lifting full-year fiscal 2026 guidance. The company highlighted 22.6% revenue growth, a record backlog of $2 billion, and a 1.6x book-to-bill ratio, all of which support the stock. Article: Kratos Reports First Quarter 2026 Financial Results and Increases Fiscal FY26 Financial Guidance
• Positive Sentiment: The company also announced Odon, Indiana as the home of its new hypersonic test facility, a long-duration investment that could expand Kratos’ role in U.S. defense infrastructure and hypersonic materials development. Article: Kratos Names Odon, Indiana as Home of New Hypersonic Test Facility
• Positive Sentiment: Analyst commentary remains constructive despite some lower targets: Citizens JMP kept an outperform-style view and still sees substantial upside, while BTIG maintained a buy rating after reducing its target.
• Neutral Sentiment: Piper Sandler and BNP Paribas Exane both lowered price targets, but neither changed the broader investment thesis materially, suggesting valuation concerns rather than a major change in business momentum.
• Negative Sentiment: Kratos’ CFO sold about $310,500 in stock, which may add some caution for investors watching insider activity. Article: Insider Selling: Kratos Defense & Security Solutions NASDAQ: KTOS CFO Sells $310,500.00 in Stock
• Negative Sentiment: Some coverage also noted that the company continues to burn cash, which helps explain why the stock may not have reacted even more strongly to the earnings beat.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several institutional investors and hedge funds have recently bought and sold shares of the stock. Geode Capital Management LLC increased its position in Kratos Defense & Security Solutions by 3.5% during the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company's stock worth $337,565,000 after purchasing an additional 148,622 shares during the last quarter. Morgan Stanley increased its position in Kratos Defense & Security Solutions by 3.9% during the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company's stock worth $251,345,000 after purchasing an additional 124,607 shares during the last quarter. First Trust Advisors LP increased its position in Kratos Defense & Security Solutions by 29.5% during the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company's stock worth $280,402,000 after purchasing an additional 698,778 shares during the last quarter. Invesco Ltd. increased its stake in Kratos Defense & Security Solutions by 7.4% during the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company's stock worth $278,331,000 after acquiring an additional 209,189 shares during the last quarter. Finally, Alliancebernstein L.P. increased its stake in Kratos Defense & Security Solutions by 1,389.0% during the third quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company's stock worth $247,409,000 after acquiring an additional 2,525,921 shares during the last quarter. Institutional investors and hedge funds own 75.92% of the company's stock.

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.

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