Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) Insider Sells $647,990.00 in Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) insider Steven Fendley sold 7,000 shares of the firm’s stock in a transaction on Monday, February 23rd. The shares were sold at an average price of $92.57, for a total transaction of $647,990.00. Following the transaction, the insider directly owned 334,648 shares of the company’s stock, valued at $30,978,365.36. The trade was a 2.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website.

Kratos Defense & Security Solutions Stock Performance

Shares of Kratos Defense & Security Solutions stock opened at $86.18 on Friday. The stock has a market cap of $14.68 billion, a price-to-earnings ratio of 662.97 and a beta of 1.09. Kratos Defense & Security Solutions, Inc. has a twelve month low of $25.11 and a twelve month high of $134.00. The company’s fifty day moving average is $98.13 and its 200 day moving average is $85.06. The company has a quick ratio of 3.68, a current ratio of 4.06 and a debt-to-equity ratio of 0.05.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its earnings results on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The business had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. During the same period last year, the company earned $0.13 EPS. Kratos Defense & Security Solutions’s revenue for the quarter was up 21.9% compared to the same quarter last year. Sell-side analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. Franklin Resources Inc. boosted its position in shares of Kratos Defense & Security Solutions by 29.6% during the 2nd quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after purchasing an additional 1,162,577 shares in the last quarter. Geode Capital Management LLC boosted its holdings in Kratos Defense & Security Solutions by 3.5% in the fourth quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after acquiring an additional 148,622 shares in the last quarter. Morgan Stanley grew its stake in Kratos Defense & Security Solutions by 3.9% in the fourth quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock valued at $251,345,000 after acquiring an additional 124,607 shares during the period. First Trust Advisors LP increased its holdings in shares of Kratos Defense & Security Solutions by 29.5% during the third quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock valued at $280,402,000 after acquiring an additional 698,778 shares in the last quarter. Finally, Invesco Ltd. raised its position in shares of Kratos Defense & Security Solutions by 7.4% during the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock worth $278,331,000 after purchasing an additional 209,189 shares during the period. 75.92% of the stock is owned by institutional investors.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
• Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
• Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
• Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
• Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
• Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
• Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
• Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
• Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns

Wall Street Analyst Weigh In

KTOS has been the topic of a number of recent analyst reports. UBS Group assumed coverage on shares of Kratos Defense & Security Solutions in a research report on Wednesday, February 18th. They issued a “neutral” rating and a $79.00 price target on the stock. Citizens Jmp lifted their target price on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the stock a “market outperform” rating in a research note on Monday, January 12th. Weiss Ratings restated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, January 22nd. Canaccord Genuity Group upped their price target on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a “buy” rating in a research report on Tuesday. Finally, Jefferies Financial Group reissued a “hold” rating and issued a $85.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Thursday, November 6th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $98.28.

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.