Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 3.5% Following Insider Selling

Key Points

• KTOS fell 3.5% in midday trading after insider selling news, with shares trading as low as $52.94 and volume running about 60% above average.
• Insiders Phillip D. Carrai and Marie Mendoza each sold shares on June 15 under pre-arranged 10b5-1 plans, according to SEC filings.
• Despite the stock pullback, analysts remain broadly positive on Kratos, with a consensus Moderate Buy rating and an average price target of $101.35.

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) was down 3.5% during mid-day trading on Thursday following insider selling activity. The company traded as low as $52.94 and last traded at $54.21. Approximately 6,949,270 shares traded hands during trading, an increase of 60% from the average session volume of 4,356,201 shares. The stock had previously closed at $56.16.

Specifically, insider Phillip D. Carrai sold 6,500 shares of the business's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $57.74, for a total value of $375,310.00. Following the transaction, the insider owned 215,052 shares in the company, valued at $12,417,102.48. The trade was a 2.93% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,500 shares of the company's stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $57.93, for a total value of $86,895.00. Following the sale, the senior vice president directly owned 64,447 shares of the company's stock, valued at approximately $3,733,414.71. This represents a 2.27% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities research analysts recently weighed in on KTOS shares. Truist Financial raised Kratos Defense & Security Solutions to a "strong-buy" rating in a report on Friday, May 1st. Citizens Jmp cut 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. Clear Str upgraded shares of Kratos Defense & Security Solutions to a "strong-buy" rating in a research note on Wednesday, April 29th. Weiss Ratings reaffirmed a "hold (c)" rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, April 21st. Finally, Canaccord Genuity Group boosted their price target on shares of Kratos Defense & Security Solutions from $125.00 to $130.00 and gave the stock a "buy" rating in a research note on Thursday, May 7th. Three analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $101.35.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos reported strong demand in its Defense Rocket Systems business, with Q1 2026 revenue in that segment jumping nearly 46% as missile and propulsion demand continues to rise. Article Title
• Positive Sentiment: The company also completed a cross-country autonomous tractor-trailer deployment supporting NASCAR logistics, highlighting progress in autonomy and defense-adjacent transportation applications that investors may view as a growth catalyst. Article Title
• Neutral Sentiment: Analysts continue to view KTOS favorably overall, with a consensus “Moderate Buy” rating and a high target price relative to recent trading, though some firms have trimmed targets or stayed cautious. Article Title
• Negative Sentiment: Recent insider sales by SVP Marie Mendoza and insider Phillip D. Carrai may be weighing on sentiment, even though both transactions were made under pre-arranged 10b5-1 trading plans. Article Title
• Negative Sentiment: One article specifically notes KTOS stock has been down, suggesting investors may be reacting to the insider activity and broader valuation concerns after a strong prior run. Article Title

Kratos Defense & Security Solutions Price Performance

The company has a debt-to-equity ratio of 0.04, a quick ratio of 5.08 and a current ratio of 5.63. The stock's fifty day moving average price is $61.58 and its 200-day moving average price is $79.77. The firm has a market cap of $10.17 billion, a PE ratio of 318.88 and a beta of 1.04.

Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last released 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. 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 for the quarter, compared to the consensus estimate of $345.00 million. During the same quarter in the previous year, the firm earned $0.12 earnings per share. The firm's revenue was up 22.6% on a year-over-year basis. As a group, equities analysts forecast 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

Several hedge funds and other institutional investors have recently bought and sold shares of KTOS. Royal Bank of Canada grew its holdings in Kratos Defense & Security Solutions by 22.6% in the first quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company's stock valued at $5,655,000 after purchasing an additional 35,098 shares during the last quarter. Amundi acquired a new position in shares of Kratos Defense & Security Solutions during the 1st quarter worth $791,000. NewEdge Advisors LLC raised its stake in shares of Kratos Defense & Security Solutions by 64.4% during the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company's stock worth $39,000 after buying an additional 515 shares during the last quarter. Jones Financial Companies Lllp boosted its position in shares of Kratos Defense & Security Solutions by 178.0% in the 1st quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company's stock worth $108,000 after buying an additional 2,286 shares in the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company's stock valued at $11,686,000 after purchasing an additional 41,265 shares in the last quarter. 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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