Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 2% on Insider Selling

Key Points

• Kratos shares fell 2% to $63.29 after CEO Eric DeMarco sold 300,000 shares for approximately $19.3 million under a pre-arranged Rule 10b5-1 trading plan, reducing his direct ownership by 28.26%.
• Analysts remain broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $99.47, despite several firms recently lowering their targets.
• Kratos reported stronger-than-expected quarterly results, posting EPS of $0.21 versus estimates of $0.14 and revenue of $458.8 million, up 30.5% year over year.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report)'s stock price traded down 2% during trading on Monday after an insider sold shares in the company. The company traded as low as $62.88 and last traded at $63.29. 3,432,868 shares traded hands during mid-day trading, a decline of 23% from the average daily volume of 4,476,052 shares. The stock had previously closed at $64.58.

Specifically, CEO Eric M. Demarco sold 300,000 shares of the stock in a transaction on Friday, August 14th. The stock was sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the sale, the chief executive officer directly owned 761,632 shares of the company's stock, valued at $48,995,786.56. This trade represents a 28.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on KTOS shares. Stifel Nicolaus lowered their price objective on shares of Kratos Defense & Security Solutions from $134.00 to $115.00 and set a "buy" rating on the stock in a research report on Thursday, August 6th. Cantor Fitzgerald reduced their target price on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an "overweight" rating for the company in a research note on Tuesday, August 4th. Clear Str raised shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Wednesday, April 29th. UBS Group reiterated a "neutral" rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a research note on Thursday, May 7th. Finally, BTIG Research raised their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the company a "buy" rating in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $99.47.

Kratos Defense & Security Solutions Trading Down 2.0%

The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04. The business's fifty day moving average is $52.48 and its 200 day moving average is $68.26. The stock has a market cap of $11.88 billion, a PE ratio of 372.29 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results 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. The company had revenue of $458.80 million during the quarter, compared to analysts' expectations of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm's quarterly revenue was up 30.5% compared to the same quarter last year. During the same period last year, the company posted $0.11 earnings per share. As a group, analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Harbor Investment Advisory LLC purchased a new position in shares of Kratos Defense & Security Solutions in the second quarter valued at $25,000. Mcguire Capital Advisors Inc. purchased a new stake in shares of Kratos Defense & Security Solutions in the 4th quarter worth about $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. Vision Retirement LLC grew its stake 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 acquiring an additional 317 shares during the last quarter. Finally, Rakuten Securities Inc. purchased a new position in Kratos Defense & Security Solutions during the 2nd quarter valued at about $31,000. 75.92% of the stock is 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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