Scot Jarvis Sells 10,000 Shares of Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Director Scot Jarvis sold 10,000 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total transaction of $635,000.00. Following the completion of the sale, the director directly owned 65,123 shares in the company, valued at approximately $4,135,310.50. This represents a 13.31% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link.

Kratos Defense & Security Solutions Trading Up 1.8%

NASDAQ KTOS opened at $57.17 on Friday. The stock has a market capitalization of $10.73 billion, a P/E ratio of 336.29 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a one year low of $43.09 and a one year high of $134.00. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The business has a 50 day simple moving average of $52.76 and a 200 day simple moving average of $66.79.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released 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 company had revenue of $458.80 million during 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%. Kratos Defense & Security Solutions’s revenue for the quarter was up 30.5% compared to the same quarter last year. During the same quarter in the previous year, the business posted $0.11 EPS. Research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.57 earnings per share for the current year.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: President Trump’s new tariffs on foreign drones and related components could give U.S. manufacturers, including Kratos, a competitive policy advantage by redirecting demand toward domestic suppliers. China’s objections to the tariffs underscore the potential importance of the measure. Trump’s New Drone Tariffs Give AeroVironment, Kratos and Red Cat a Policy Tailwind
• Positive Sentiment: Investor focus remains on Kratos’ expansion phase. The company reportedly has a $2.08 billion backlog and is increasing production capacity through 2028 to meet defense demand, particularly in unmanned systems, hypersonics and satellite communications. Is Kratos Defense Entering the Scale-Up Phase of Defense Modernization?
• Positive Sentiment: Recent quarterly results provide fundamental support: revenue rose 30.5% year over year to $458.8 million, while EPS of $0.21 exceeded the $0.14 consensus estimate. The strong results and ongoing defense modernization demand help explain renewed interest in KTOS. Drone Trade Rebound
• Neutral Sentiment: The broader drone-stock rebound may be fragile after a sharp selloff, leaving KTOS vulnerable to continued volatility and profit-taking.
• Negative Sentiment: Director Scot Jarvis sold 10,000 shares for approximately $635,000, following other insider sales. The transaction was made under a pre-arranged Rule 10b5-1 plan, reducing its value as a discretionary bearish signal, but the lack of reported open-market insider purchases may weigh on sentiment. Scot Jarvis Insider Sale
• Negative Sentiment: Kratos trades at a very elevated earnings multiple, so investors may demand sustained growth, production execution and margin improvement. Any disappointment could have an outsized effect on the stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently modified their holdings of the stock. New Age Alpha Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 435.1% in the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company’s stock worth $3,265,000 after buying an additional 34,973 shares during the period. BNP Paribas Financial Markets raised its stake in Kratos Defense & Security Solutions by 245.2% in the fourth quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company’s stock worth $45,673,000 after buying an additional 427,396 shares in the last quarter. M&T Bank Corp boosted its position in shares of Kratos Defense & Security Solutions by 6,900.4% during the fourth quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company’s stock valued at $13,423,000 after purchasing an additional 174,305 shares in the last quarter. Principal Financial Group Inc. boosted its holdings in shares of Kratos Defense & Security Solutions by 65.2% during the 4th quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company’s stock valued at $54,206,000 after buying an additional 281,811 shares in the last quarter. Finally, B. Metzler seel. Sohn & Co. AG bought a new stake in Kratos Defense & Security Solutions during the fourth quarter worth about $1,821,000. 75.92% of the stock is owned by institutional investors.

Analysts Set New Price Targets

A number of equities research analysts recently commented on KTOS shares. UBS Group reissued a “neutral” rating and issued a $82.00 price target on shares of Kratos Defense & Security Solutions in a research report on Thursday, May 7th. Citizens Jmp lowered their price target on shares of Kratos Defense & Security Solutions from $125.00 to $105.00 and set a “market outperform” rating on the stock in a report on Friday, May 8th. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a report on Wednesday, August 5th. Stifel Nicolaus cut their target price on Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating for the company in a research note on Thursday, August 6th. Finally, Cantor Fitzgerald reduced their price target on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set an “overweight” rating for the company in a research report on Tuesday, August 4th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Kratos Defense & Security Solutions currently has an average rating of “Moderate Buy” and an average target price of $99.47.

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.