Kratos Defense & Security Solutions (NASDAQ:KTOS) CFO Sells $280,000.00 in Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) CFO Deanna Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, October 26th. The stock was sold at an average price of $40.00, for a total transaction of $280,000.00. Following the completion of the transaction, the chief financial officer directly owned 266,740 shares of the company’s stock, valued at approximately $10,669,600. This represents a 2.56% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Down 5.7%

KTOS stock opened at $41.09 on Friday. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. Kratos Defense & Security Solutions, Inc. has a 1-year low of $36.37 and a 1-year high of $134.00. The firm has a fifty day moving average price of $45.16 and a two-hundred day moving average price of $64.76. The firm has a market cap of $7.71 billion, a price-to-earnings ratio of 241.71 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. During the same period last year, the firm posted $0.11 EPS. The company’s revenue for the quarter was up 30.5% on a year-over-year basis. Research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.59 EPS for the current year.

Analysts Set New Price Targets

KTOS has been the subject of a number of research reports. Barclays initiated coverage on Kratos Defense & Security Solutions in a research note on Friday, October 9th. They issued an “overweight” rating and a $90.00 target price for the company. Stifel Nicolaus dropped their price target on 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. Weiss Ratings lowered Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. Oppenheimer began coverage on Kratos Defense & Security Solutions in a research report on Thursday, October 22nd. They set an “outperform” rating and a $50.00 price objective for the company. Finally, BTIG Research upped their price objective on Kratos Defense & Security Solutions from $100.00 to $104.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Three analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has assigned a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat, Kratos Defense & Security Solutions has an average rating of “Moderate Buy” and an average price target of $86.40.

Kratos Defense & Security Solutions News Summary

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

• Positive Sentiment: Kratos received a $33.6 million NASA-related contract from Sierra Lobo to design and build the power-conversion system for the Space Reactor-1 Freedom spacecraft, strengthening its space and national-security portfolio ahead of its next earnings report. NASA contract announcement
• Positive Sentiment: Recent analysis points to robust organic growth, strong bookings and production ramp-ups in unmanned systems, propulsion and defense electronics. Kratos’ latest reported revenue rose 30.5% year over year to $458.8 million, while its 1.3x trailing book-to-bill ratio supports future revenue visibility. Seeking Alpha growth analysis
• Positive Sentiment: Analysts continue to highlight potential upside from rising global military spending. B. Riley retained a Buy rating, and the consensus remains “Moderate Buy.” Kratos also has a strong balance sheet, including very low leverage, although its profitability remains modest.
• Neutral Sentiment: Investors are comparing Kratos with larger contractor Lockheed Martin. KTOS offers faster growth exposure but trades at a substantially richer valuation and has less established earnings and cash-flow scale, making the stock more sensitive to execution and interest-rate concerns. Kratos versus Lockheed Martin analysis
• Negative Sentiment: B. Riley lowered its KTOS price target from $128 to $91, while Royal Bank of Canada issued a more pessimistic forecast and previously reduced its target to $55 from $80. Although Buy or Outperform ratings remain, the cuts signal increasing caution about valuation and near-term execution.
• Negative Sentiment: Kratos trades at an elevated earnings multiple despite a net margin of only 2.03% and ongoing investment needs, including negative free cash flow highlighted in recent analysis. This leaves the stock vulnerable to profit-taking after its prior rally.
• Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $280,000 under a pre-arranged Rule 10b5-1 plan. The scheduled nature limits the signal, but insider selling may still weigh modestly on sentiment.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Southern Financial Group LLC raised its stake in shares of Kratos Defense & Security Solutions by 8.4% in the 3rd quarter. Southern Financial Group LLC now owns 6,235 shares of the aerospace company’s stock worth $266,000 after buying an additional 485 shares in the last quarter. Provenance Wealth Advisors LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 128.9% in the third quarter. Provenance Wealth Advisors LLC now owns 744 shares of the aerospace company’s stock valued at $32,000 after buying an additional 419 shares during the period. Gerber Kawasaki Wealth & Investment Management boosted its stake in Kratos Defense & Security Solutions by 2.7% during the third quarter. Gerber Kawasaki Wealth & Investment Management now owns 69,093 shares of the aerospace company’s stock valued at $2,950,000 after buying an additional 1,847 shares in the last quarter. Harold Davidson & Associates Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter worth approximately $369,000. Finally, Traynor Capital Management Inc. grew its position in Kratos Defense & Security Solutions by 48.9% in the third quarter. Traynor Capital Management Inc. now owns 8,954 shares of the aerospace company’s stock worth $382,000 after buying an additional 2,939 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.

Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.