Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 9.8% Following Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price dropped 9.8% during trading on Wednesday after an insider sold shares in the company. The company traded as low as $43.75 and last traded at $43.88. Approximately 3,915,550 shares changed hands during mid-day trading, a decline of 13% from the average daily volume of 4,483,671 shares. The stock had previously closed at $48.64.

Specifically, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction on Monday, July 27th. The shares were sold at an average price of $47.13, for a total value of $329,910.00. Following the completion of the sale, the insider owned 295,120 shares of the company’s stock, valued at $13,909,005.60. This represents a 2.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Wall Street Analyst Weigh In

Several equities analysts recently weighed in on the stock. Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Friday, July 17th. BNP Paribas Exane increased their price target on Kratos Defense & Security Solutions from $80.00 to $85.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. The Goldman Sachs Group cut their price objective on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a research report on Tuesday, July 14th. UBS Group reaffirmed a “neutral” rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Finally, Jefferies Financial Group reiterated a “buy” rating and issued a $80.00 target price on shares of Kratos Defense & Security Solutions in a research note on Wednesday, July 8th. Three 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 data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average target price of $101.29.

Key Stories Impacting Kratos Defense & Security Solutions

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.

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 business’s fifty day simple moving average is $53.37 and its 200 day simple moving average is $74.03. The stock has a market cap of $8.23 billion, a price-to-earnings ratio of 258.12 and a beta of 1.07.

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

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions during the 4th quarter worth approximately $25,000. Atlantic Union Bankshares Corp boosted its stake in shares of Kratos Defense & Security Solutions by 7,600.0% during 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. Murphy & Mullick Capital Management Corp grew its position in shares of Kratos Defense & Security Solutions by 115.4% during the fourth quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after buying an additional 225 shares in the last quarter. Vision Retirement LLC grew its position in shares of Kratos Defense & Security Solutions by 288.2% during the first quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after buying an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. bought a new stake in shares of Kratos Defense & Security Solutions in the fourth quarter worth $37,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.