Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider Steven Fendley Sells 7,000 Shares

Key Points

• Insider sale: Steven Fendley sold 7,000 Kratos shares for approximately $329,910 under a pre-arranged Rule 10b5-1 plan, reducing his holdings by 2.32% to 295,120 shares.
• Stock and financial performance: KTOS recently traded near $43.88, close to its 52-week low, despite reporting quarterly revenue growth of 22.6% and earnings of $0.16 per share, above estimates.
• Investor outlook is mixed: Analysts maintain a consensus “Moderate Buy” rating with a $101.29 price target, but the stock’s P/E ratio above 250 and extensive insider selling make it highly sensitive to earnings execution and future growth.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Steven Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, July 27th. The stock was sold at an average price of $47.13, for a total value of $329,910.00. Following the sale, the insider owned 295,120 shares in the company, valued at $13,909,005.60. This trade represents a 2.32% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Performance

KTOS traded down $4.76 during trading on Wednesday, hitting $43.88. 3,930,203 shares of the stock were exchanged, compared to its average volume of 4,483,863. The company has a quick ratio of 5.08, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 1-year low of $43.75 and a 1-year high of $134.00. The stock has a fifty day moving average price of $53.37 and a two-hundred day moving average price of $74.03. The firm has a market capitalization of $8.23 billion, a P/E ratio of 258.12 and a beta of 1.07.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 EPS for the quarter, beating the consensus estimate of $0.13 by $0.03. Kratos Defense & Security Solutions had a net margin of 2.08% and a return on equity of 2.82%. The firm had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. During the same quarter in the prior year, the firm earned $0.12 EPS. Kratos Defense & Security Solutions's revenue for the quarter was up 22.6% on a year-over-year basis. As a group, sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.48 earnings per share for the current year.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos said it delivered turbomachinery for Lockheed Martin’s ramjet propulsion system. The milestone reinforces KTOS’s role in advanced propulsion and hypersonic programs, although no contract value or near-term revenue impact was disclosed. Kratos delivered turbomachinery for Lockheed Martin’s ramjet propulsion system
• Positive Sentiment: The company completed its $50 million, 68,000-square-foot Indiana Payload Integration Facility ahead of schedule. The site will manufacture, integrate, and test experimental hypersonic payloads, support programs such as MACH-TB, and is expected to create more than 100 high-tech jobs. The facility could expand KTOS’s capacity and strengthen its position in the hypersonics market, though financial returns were not provided. Kratos completes Indiana hypersonic facility
• Positive Sentiment: One analyst characterized Kratos as offering “outstanding relative value” compared with Anduril and suggested substantial upside potential. However, this is an analyst opinion rather than a new contract or change in fundamentals. Analyst compares Kratos with Anduril
• Neutral Sentiment: KTOS is scheduled to report results next week. Analysts expect earnings growth, but Zacks said the company lacks the combination of factors typically associated with a likely earnings beat, increasing the risk of a disappointing outlook or muted reaction. Kratos earnings expectations
• Negative Sentiment: Insider-trading data shows extensive selling, with 147 insider sales and no purchases over the past six months. While some sales may reflect scheduled transactions or compensation, the one-sided activity can weigh on investor sentiment.
• Negative Sentiment: KTOS’s valuation remains demanding, with a reported price-to-earnings ratio above 250. That leaves the stock particularly sensitive to earnings execution, guidance, and evidence that hypersonic investments will generate meaningful future growth.

Wall Street Analyst Weigh In

Several brokerages have issued reports on KTOS. JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and dropped their price objective for the company from $99.00 to $82.00 in a research note on Friday, June 12th. Truist Financial upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Friday, May 1st. Royal Bank Of Canada cut their price target on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an "outperform" rating for the company in a report on Thursday, May 7th. Citizens Jmp reduced their price objective 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 report on Friday, May 8th. Finally, Jefferies Financial Group reaffirmed a "buy" rating and issued a $80.00 price objective on shares of Kratos Defense & Security Solutions in a report on Wednesday, July 8th. Three equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $101.29.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently modified their holdings of KTOS. Mcguire Capital Advisors Inc. acquired a new position in Kratos Defense & Security Solutions during the fourth quarter worth $25,000. Atlantic Union Bankshares Corp grew its stake 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 acquiring an additional 380 shares during the last quarter. Murphy & Mullick Capital Management Corp increased its holdings in Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company's stock valued at $32,000 after acquiring an additional 225 shares in the last quarter. Vision Retirement LLC increased its holdings in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company's stock valued at $30,000 after acquiring an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new position in Kratos Defense & Security Solutions during the 4th quarter valued at about $37,000. 75.92% of the stock is currently owned by institutional investors and hedge funds.

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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