Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 1.7% on Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares were down 1.7% during mid-day trading on Wednesday after an insider sold shares in the company. The company traded as low as $46.08 and last traded at $46.16. Approximately 2,988,255 shares were traded during trading, a decline of 31% from the average session volume of 4,331,682 shares. The stock had previously closed at $46.97.

Specifically, CFO Deanna H. Lund sold 7,000 shares of the company’s stock in a transaction dated Monday, September 21st. The shares were sold at an average price of $48.78, for a total transaction of $341,460.00. Following the completion of the sale, the chief financial officer directly owned 273,511 shares of the company’s stock, valued at approximately $13,341,866.58. This represents a 2.50% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Phillip D. Carrai sold 6,500 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Tuesday, September 15th. The stock was sold at an average price of $47.83, for a total transaction of $310,895.00. Following the completion of the transaction, the insider directly owned 175,653 shares in the company, valued at approximately $8,401,482.99. This trade represents a 3.57% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In other news, SVP Marie Mendoza sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $48.50, for a total transaction of $48,500.00. Following the sale, the senior vice president owned 61,200 shares in the company, valued at $2,968,200. The trade was a 1.61% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analysts Set New Price Targets

Several equities analysts have weighed in on the stock. Guggenheim initiated coverage on shares of Kratos Defense & Security Solutions in a research report on Monday, September 14th. They set a “buy” rating and a $74.00 price objective on the stock. Wedbush assumed coverage on Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They issued an “outperform” rating and a $85.00 price objective for the company. The Goldman Sachs Group dropped their target price on Kratos Defense & Security Solutions from $100.00 to $89.00 and set a “buy” rating on the stock in a report on Tuesday, July 14th. Piper Sandler upgraded shares of Kratos Defense & Security Solutions from a “neutral” rating to an “overweight” rating and set a $75.00 price target for the company in a report on Wednesday, August 5th. Finally, Canaccord Genuity Group boosted their price objective on shares of Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the company a “buy” rating in a research report on Wednesday, August 5th. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, two have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $98.06.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos remains positioned in the expanding unmanned-systems market, alongside Draganfly, although the companies have different growth strategies. Continued demand for drones and related defense technologies supports the long-term investment case for KTOS. Kratos Defense vs. Draganfly: Which Drone Stock Has More Potential?
• Neutral Sentiment: A Buffalo Mid Cap Discovery Fund investor letter cited moderation in the defense sector as a factor weighing on Kratos. The report reflects broader sector sentiment rather than a new contract, earnings revision, or change in company fundamentals. Defense Sector Moderation Weighs on Kratos Defense & Security Solutions
• Neutral Sentiment: Reports showed no reported short interest as of September 24, implying that short sellers were not a significant measurable source of pressure. However, the unusual zero-share figure may reflect a data or reporting issue, limiting its usefulness as a trading signal.
• Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $341,460, reducing her holdings by 2.5%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which weakens its significance as a fundamental warning, but insider selling can still weigh on investor sentiment. SEC insider transaction filing

Kratos Defense & Security Solutions Trading Down 3.0%

The firm has a market cap of $8.56 billion, a P/E ratio of 268.35 and a beta of 1.11. The company has a 50 day moving average of $51.64 and a 200 day moving average of $59.31. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.07. The firm had revenue of $458.80 million for the quarter, compared to analyst estimates of $410.36 million. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The company’s revenue for the quarter was up 30.5% on a year-over-year basis. During the same quarter last year, the firm earned $0.11 earnings per share. Analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Murphy & Mullick Capital Management Corp boosted its stake in shares of Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after acquiring an additional 225 shares in the last quarter. Vision Retirement LLC lifted its holdings in Kratos Defense & Security Solutions by 288.2% in the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares during the last quarter. Harbor Investment Advisory LLC acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $25,000. IMG Wealth Management Inc. boosted its position in Kratos Defense & Security Solutions by 427.0% during the first quarter. IMG Wealth Management Inc. now owns 527 shares of the aerospace company’s stock worth $37,000 after purchasing an additional 427 shares during the period. Finally, Geneos Wealth Management Inc. boosted its position in Kratos Defense & Security Solutions by 333.3% during the first quarter. Geneos Wealth Management Inc. now owns 650 shares of the aerospace company’s stock worth $46,000 after purchasing an additional 500 shares during the period. Institutional investors own 75.92% of the company’s stock.

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.