Kratos Defense & Security Solutions (NASDAQ:KTOS) CEO Eric Demarco Sells 300,000 Shares of Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) CEO Eric Demarco sold 300,000 shares of Kratos Defense & Security Solutions stock in a transaction on Friday, August 14th. The shares were sold at an average price of $64.33, for a total value of $19,299,000.00. Following the completion of the transaction, the chief executive officer owned 761,632 shares of the company’s stock, valued at approximately $48,995,786.56. This trade represents a 28.26% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Trading Up 2.9%

Shares of Kratos Defense & Security Solutions stock opened at $64.58 on Friday. The company’s 50-day moving average price is $52.48 and its 200-day moving average price is $68.56. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. Kratos Defense & Security Solutions, Inc. has a 12-month low of $43.09 and a 12-month high of $134.00. The company has a market cap of $12.12 billion, a price-to-earnings ratio of 379.88 and a beta of 1.08.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.The company had revenue of $458.80 million during the quarter, compared to analyst estimates of $410.36 million. During the same quarter last year, the company earned $0.11 earnings per share. The firm’s quarterly revenue was up 30.5% on a year-over-year basis. On average, equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently made changes to their positions in the business. CENTRAL TRUST Co grew its holdings in shares of Kratos Defense & Security Solutions by 7.3% during the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company’s stock valued at $129,000 after purchasing an additional 115 shares during the last quarter. Quadrant Capital Group LLC lifted its stake in Kratos Defense & Security Solutions by 2.1% in the fourth quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company’s stock worth $449,000 after purchasing an additional 122 shares during the last quarter. Parkside Financial Bank & Trust boosted its position in Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company’s stock valued at $148,000 after buying an additional 125 shares during the period. Northwestern Mutual Investment Management Company LLC boosted its position in Kratos Defense & Security Solutions by 0.4% during the fourth quarter. Northwestern Mutual Investment Management Company LLC now owns 37,776 shares of the aerospace company’s stock valued at $2,868,000 after buying an additional 153 shares during the period. Finally, Parallel Advisors LLC grew its stake in shares of Kratos Defense & Security Solutions by 44.1% during the fourth quarter. Parallel Advisors LLC now owns 526 shares of the aerospace company’s stock valued at $40,000 after buying an additional 161 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of equities analysts have commented on KTOS shares. The Goldman Sachs Group cut their price target on shares of Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating for the company in a research note on Tuesday, July 14th. JPMorgan Chase & Co. raised shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and dropped their price objective for the stock from $99.00 to $82.00 in a report on Friday, June 12th. Weiss Ratings lowered shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research report on Wednesday, August 5th. BTIG Research raised their price target on 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. Finally, Truist Financial cut their price objective on Kratos Defense & Security Solutions from $135.00 to $104.00 and set a “buy” rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions has a consensus rating of “Moderate Buy” and a consensus price target of $99.47.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos is reported to have a potential $15 billion opportunity pipeline. Continued defense spending and new contract awards could expand its backlog, revenue, and long-term growth prospects. Can Kratos Defense’s $15B Opportunity Pipeline Sustain Growth Momentum?
• Positive Sentiment: Reports from Kratos’s second-quarter earnings call highlighted accelerating demand across its hypersonics, jet-engine, and defense-support businesses. Management said investments in scalable, affordable manufacturing are positioning the company to pursue more Department of Defense contracts. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
• Positive Sentiment: Kratos is participating in a broader rally in drone and defense stocks after new U.S. tariffs on imported drones and components. The policy could improve the competitive position of domestic defense-drone suppliers and increase interest in U.S.-based production. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
• Positive Sentiment: Kratos recently exceeded quarterly expectations, reporting $458.8 million in revenue and $0.21 in earnings per share versus consensus estimates of $410.4 million and $0.14, respectively. Revenue increased 30.5% year over year, reinforcing the growth narrative.
• Neutral Sentiment: Analysts are offering updated forecasts for Kratos’s fiscal 2026 earnings, which may influence expectations as investors assess how quickly the opportunity pipeline converts into funded contracts and profit.
• Negative Sentiment: The bullish outlook carries execution risk. Kratos trades at a very high earnings multiple, while its reported net margin and return on equity remain modest; delays in contract awards or weaker-than-expected cash generation could make the valuation harder to justify.

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.