Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider Steven Fendley Sells 35,000 Shares

Key Points

• Insider sale: Kratos Defense & Security Solutions insider Steven Fendley sold 35,000 shares at an average price of $58.23, totaling about $2.04 million. After the transaction, he still held 309,087 shares, reducing his ownership by about 10.17%.
• Stock and valuation context: KTOS shares fell 2.4% to $54.82 in midday trading, below both its 50-day and 200-day moving averages. The stock still carries a high valuation, with a market cap of $10.28 billion and a price-to-earnings ratio of 322.47.
• Fundamentals and analyst view: The company recently beat quarterly estimates, reporting EPS of $0.16 on revenue of $371 million, up 22.6% year over year. Wall Street remains generally positive, with a consensus rating of Moderate Buy and an average price target of $96.28.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Steven Fendley sold 35,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $58.23, for a total value of $2,038,050.00. Following the completion of the sale, the insider owned 309,087 shares of the company's stock, valued at approximately $17,998,136.01. The trade was a 10.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink.

Kratos Defense & Security Solutions Trading Down 2.4%

KTOS stock traded down $1.37 during midday trading on Wednesday, reaching $54.82. The stock had a trading volume of 2,728,439 shares, compared to its average volume of 4,711,833. The business has a fifty day simple moving average of $62.80 and a two-hundred day simple moving average of $80.36. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The firm has a market cap of $10.28 billion, a price-to-earnings ratio of 322.47 and a beta of 1.04. Kratos Defense & Security Solutions, Inc. has a twelve month low of $37.90 and a twelve month high of $134.00.

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 EPS for the quarter, topping analysts' consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million during the quarter, compared to analyst estimates of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The company's revenue was up 22.6% on a year-over-year basis. During the same period last year, the company earned $0.12 earnings per share. As a group, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current fiscal year.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. acquired a new stake in Kratos Defense & Security Solutions in the 4th quarter valued at approximately $25,000. Atlantic Union Bankshares Corp raised its position in Kratos Defense & Security Solutions by 7,600.0% in the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company's stock valued at $29,000 after buying an additional 380 shares during the last quarter. Vision Retirement LLC raised its position in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after buying an additional 317 shares during the last quarter. Rakuten Securities Inc. acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at approximately $31,000. Finally, Caitlin John LLC acquired a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at approximately $32,000. Institutional investors own 75.92% of the company's stock.

Wall Street Analyst Weigh In

A number of brokerages have issued reports on KTOS. UBS Group restated a "neutral" rating and set a $82.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Clear Str upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. Truist Financial upgraded Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Piper Sandler reduced their target price on Kratos Defense & Security Solutions from $99.00 to $75.00 and set a "neutral" rating on the stock in a report on Thursday, May 7th. Finally, Weiss Ratings restated a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Three investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and five have given a Hold rating to the stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $96.28.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos announced a major expansion of Spartan turbojet engine production, targeting 3,000 engines next year to meet rising demand from missile and loitering munition programs, which could boost future revenue visibility. Article: Kratos Expands Production of Spartan Engines to Support Growing Missile and Loitering Munition Demand
• Positive Sentiment: Analysts noted Kratos is building a growth engine in hypersonics and autonomous systems, with Valkyrie drone production and improving Unmanned Systems profitability supporting the longer-term investment case. Article: Is KTOS Building a Growth Engine in Hypersonics & Autonomous Systems?
• Neutral Sentiment: Insider David M. Carter sold 4,000 shares under a pre-arranged 10b5-1 plan; the sale was disclosed properly, but insider selling can still weigh on sentiment. Article: Insider sale filing
• Negative Sentiment: Recent commentary suggested KTOS may be priced for a lot of growth after its multiyear run, adding to valuation concerns that could be contributing to the stock’s weakness. Article: Is Kratos Defense & Security Solutions (KTOS) Pricing In Too Much After Its Multiyear Run?

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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