Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 6.7% After Insider Selling

Shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) dropped 6.7% on Thursday after an insider sold shares in the company. The stock traded as low as $84.50 and last traded at $85.25. Approximately 3,521,948 shares changed hands during mid-day trading, a decline of 18% from the average daily volume of 4,321,294 shares. The stock had previously closed at $91.33.

Specifically, CFO Deanna H. Lund sold 5,000 shares of the firm’s stock in a transaction on Monday, February 2nd. The stock was sold at an average price of $96.87, for a total value of $484,350.00. Following the transaction, the chief financial officer directly owned 274,983 shares in the company, valued at $26,637,603.21. This trade represents a 1.79% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, Director Scot B. Jarvis sold 5,000 shares of the company’s stock in a transaction on Wednesday, January 28th. The shares were sold at an average price of $118.28, for a total value of $591,400.00. Following the sale, the director owned 100,417 shares of the company’s stock, valued at approximately $11,877,322.76. This trade represents a 4.74% decrease in their position. The SEC filing for this sale provides additional information.

Wall Street Analyst Weigh In

A number of equities research analysts have issued reports on the company. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Monday, January 12th. BNP Paribas Exane set a $80.00 target price on shares of Kratos Defense & Security Solutions in a report on Tuesday, November 18th. Citizens Jmp increased their price target on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the stock a “market outperform” rating in a research report on Monday, January 12th. Canaccord Genuity Group boosted their price objective on shares of Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the company a “buy” rating in a research report on Thursday, October 9th. Finally, The Goldman Sachs Group raised their target price on Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a “buy” rating in a report on Tuesday, January 20th. One equities research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average target price of $95.28.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Taiwan partnership and operational test: Kratos and Taiwan’s military successfully tested a new jet‑powered attack drone designed for low‑cost, scalable deployment — a meaningful export/partner win that increases near‑term program and production visibility for Kratos’ unmanned systems business. Taiwan teams with US firm Kratos to build attack drones to counter China
• Positive Sentiment: Successful integrated system tests: Reports show Kratos and Taiwan’s NCSIST completed an integrated Mighty Hornet IV test and Kratos is winning training/simulation contracts — both signal product maturation across drone and training platforms, which supports recurring contract opportunities. Kratos, NCSIST Team Successfully Test Integrated Mighty Hornet IV System
• Positive Sentiment: Market recognition and analyst support: Several firms have recently raised price targets and reiterated buy/overweight views (Goldman, KeyCorp, Canaccord), providing additional sell‑side backing for future upside. MarketBeat KTOS analyst notes
• Neutral Sentiment: Catalyst calendar: Kratos remains a near‑term earnings/catalyst name (next report late Feb), and is featured in lists of high‑momentum defense names — both keep it on investors’ radar but are mixed for direction until results/contract rollouts are quantified. KTOS company and forecast page
• Negative Sentiment: Insider selling flagged: Kratos’ CFO sold 5,000 shares (~$484k) in early February; the disclosure has coincided with headline coverage and is being cited as a proximate reason for today’s weakness. CFO Sells $484,350.00 in Stock
• Negative Sentiment: Extended valuation and profit‑taking risk: KTOS trades with a very high P/E and has rallied strongly over the past year; that elevated valuation increases sensitivity to earnings misses, contract timing, or any negative headlines, amplifying downside on distribution. Valuation and performance context

Kratos Defense & Security Solutions Price Performance

The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04. The stock has a 50 day simple moving average of $92.42 and a 200-day simple moving average of $81.34. The firm has a market cap of $14.39 billion, a PE ratio of 655.82 and a beta of 1.09.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last released its quarterly earnings data on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02. The firm had revenue of $347.60 million during the quarter, compared to analyst estimates of $323.01 million. Kratos Defense & Security Solutions had a return on equity of 3.14% and a net margin of 1.56%.The business’s quarterly revenue was up 26.0% compared to the same quarter last year. During the same quarter in the prior year, the company posted $0.11 earnings per share. Equities analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently added to or reduced their stakes in the stock. Franklin Resources Inc. boosted its position in shares of Kratos Defense & Security Solutions by 29.6% during the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after acquiring an additional 1,162,577 shares during the last quarter. ARK Investment Management LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 22.2% during the 2nd quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company’s stock valued at $209,382,000 after purchasing an additional 818,104 shares during the last quarter. Geode Capital Management LLC boosted its holdings in shares of Kratos Defense & Security Solutions by 8.3% during the 2nd quarter. Geode Capital Management LLC now owns 3,949,763 shares of the aerospace company’s stock valued at $183,490,000 after purchasing an additional 301,135 shares during the last quarter. First Trust Advisors LP grew its position 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 purchasing an additional 698,778 shares in the last quarter. Finally, Invesco Ltd. increased its holdings in shares of Kratos Defense & Security Solutions by 7.4% in 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 last quarter. 75.92% of the stock is owned by hedge funds and other institutional investors.

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.