Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 9.1% Following Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares dropped 9.1% during mid-day trading on Friday after an insider sold shares in the company. The company traded as low as $95.43 and last traded at $96.08. Approximately 4,613,363 shares were traded during mid-day trading, an increase of 15% from the average daily volume of 3,995,141 shares. The stock had previously closed at $105.67.

Specifically, SVP Marie Mendoza sold 1,500 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $88.08, for a total transaction of $132,120.00. Following the completion of the sale, the senior vice president owned 62,121 shares in the company, valued at approximately $5,471,617.68. This represents a 2.36% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction that occurred on Tuesday, February 17th. The shares were sold at an average price of $90.91, for a total value of $590,915.00. Following the completion of the transaction, the insider directly owned 213,325 shares in the company, valued at $19,393,375.75. The trade was a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Wall Street Analyst Weigh In

Several equities analysts have commented on KTOS shares. Jefferies Financial Group reiterated a “hold” rating and set a $85.00 price target on shares of Kratos Defense & Security Solutions in a report on Thursday, November 6th. Stifel Nicolaus lifted their target price on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. KeyCorp boosted their target price on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a research report on Wednesday, January 28th. Piper Sandler initiated coverage on Kratos Defense & Security Solutions in a research report on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target on the stock. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, January 22nd. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $93.83.

Key Kratos Defense & Security Solutions News

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

• Positive Sentiment: Prometheus Energetics (a JV that includes Kratos) broke ground on a new solid rocket motor campus in Indiana—this expands Kratos’ propulsion/energetics capability and supports longer‑term revenue potential. Prometheus Energetics Breaks Ground
• Positive Sentiment: Kratos announced expanded roles in hypersonics, satellites and autonomy programs—operational wins in high‑priority defense segments that support multi‑year growth expectations. Kratos Expands Role In Hypersonics
• Positive Sentiment: Kratos won a contract to streamline hypersonic materials development—a technical contract that reinforces its addressable market in hypersonics. Hypersonic Materials Contract
• Neutral Sentiment: Reported short‑interest figures are effectively zero/ambiguous (likely a reporting/data quirk) and are unlikely to be a material driver of today’s move.
• Negative Sentiment: UBS initiated coverage with a “neutral” rating and a $79 price target—this published target sits well below recent trading levels and can directly weaken sentiment and trigger selling pressure. UBS Initiates Coverage
• Negative Sentiment: Two insiders disclosed sales (SVP Marie Mendoza sold 1,500 shares at ~$88.08; Phillip D. Carrai sold 6,500 shares at ~$90.91). While both still hold large positions, the filings read as near‑term profit taking and likely added to downward pressure. Insider Sale Filings Insider Sale Filings 2

Kratos Defense & Security Solutions Stock Down 9.1%

The firm has a 50 day moving average of $96.38 and a 200-day moving average of $84.05. The company has a debt-to-equity ratio of 0.04, a current ratio of 4.30 and a quick ratio of 3.68. The stock has a market capitalization of $16.37 billion, a P/E ratio of 739.13 and a beta of 1.09.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Institutional investors have recently bought and sold shares of the business. Mcguire Capital Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $25,000. Bayforest Capital Ltd bought a new stake in Kratos Defense & Security Solutions in the third quarter valued at about $32,000. Caitlin John LLC acquired a new position in Kratos Defense & Security Solutions in the third quarter worth about $32,000. Atlantic Union Bankshares Corp lifted its stake in Kratos Defense & Security Solutions by 7,600.0% during the fourth quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 380 shares during the period. Finally, Whittier Trust Co. acquired a new stake in Kratos Defense & Security Solutions during the third quarter valued at approximately $38,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.