Key Points
- CEO Eric DeMarco sold 191,699 shares on Jan. 6 at an average price of $90.28 for about $17.31M, cutting his holding by 21.8% to 687,117 shares, according to the SEC filing.
- Kratos beat Q3 expectations with $0.14 EPS (vs. $0.12) and revenue of $347.6M (+26% YoY), but the stock trades at a very high P/E (~707) and a market cap of roughly $15.5B.
- Several analysts have raised price targets and institutional ownership is high (~75.9%), providing bullish momentum, though recent insider sales by the CEO and CFO may be viewed negatively by the market.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CFO Deanna Lund sold 5,000 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $77.91, for a total value of $389,550.00. Following the completion of the sale, the chief financial officer directly owned 243,235 shares of the company's stock, valued at $18,950,438.85. This represents a 2.01% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.
Kratos Defense & Security Solutions Trading Up 2.2%
Shares of KTOS stock opened at $91.93 on Wednesday. The firm has a market capitalization of $15.52 billion, a P/E ratio of 707.21 and a beta of 1.09. Kratos Defense & Security Solutions, Inc. has a 1 year low of $23.90 and a 1 year high of $112.57. The firm's fifty day simple moving average is $77.36 and its 200 day simple moving average is $71.84. The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings results on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share for the quarter, beating analysts' consensus estimates of $0.12 by $0.02. The firm had revenue of $347.60 million during the quarter, compared to the consensus estimate of $323.01 million. Kratos Defense & Security Solutions had a net margin of 1.56% and a return on equity of 3.14%. The business's revenue was up 26.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.11 EPS. As a group, sell-side analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current year.
Wall Street Analyst Weigh In
Several equities analysts have commented on KTOS shares. Canaccord Genuity Group upped their price target on Kratos Defense & Security Solutions from $74.00 to $120.00 and gave the company a "buy" rating in a report on Thursday, October 9th. BTIG Research boosted their price objective on Kratos Defense & Security Solutions from $80.00 to $95.00 and gave the company a "buy" rating in a research report on Thursday, November 6th. Jefferies Financial Group restated a "hold" rating and issued a $85.00 target price on shares of Kratos Defense & Security Solutions in a research note on Thursday, November 6th. BNP Paribas set a $80.00 price target on shares of Kratos Defense & Security Solutions in a research note on Tuesday, November 18th. Finally, Stifel Nicolaus boosted their price target on shares of Kratos Defense & Security Solutions from $70.00 to $112.00 and gave the company a "buy" rating in a report on Wednesday, October 15th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have given a Hold rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $82.53.
View Our Latest Analysis on KTOS
Hedge Funds Weigh In On Kratos Defense & Security Solutions
A number of hedge funds have recently modified their holdings of the stock. State of Alaska Department of Revenue lifted its holdings in Kratos Defense & Security Solutions by 15.8% during the 2nd quarter. State of Alaska Department of Revenue now owns 98,033 shares of the aerospace company's stock valued at $4,552,000 after purchasing an additional 13,345 shares during the last quarter. ARK Investment Management LLC increased its holdings in shares of Kratos Defense & Security Solutions by 22.2% during the second quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company's stock worth $209,382,000 after buying an additional 818,104 shares in the last quarter. Trivium Point Advisory LLC increased its holdings in shares of Kratos Defense & Security Solutions by 25.0% during the second quarter. Trivium Point Advisory LLC now owns 22,406 shares of the aerospace company's stock worth $1,041,000 after buying an additional 4,483 shares in the last quarter. Alpha Wealth Funds LLC bought a new position in shares of Kratos Defense & Security Solutions in the second quarter valued at approximately $227,000. Finally, Empowered Funds LLC acquired a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth approximately $4,999,000. 75.92% of the stock is owned by institutional investors and hedge funds.
Key Kratos Defense & Security Solutions News
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Jones Trading initiated coverage with a "buy" rating, providing fresh institutional analyst support that can attract buyers and lend momentum to the rally. Jones Trading Coverage
- Positive Sentiment: Kratos announced program progress (EPOCH–OneSat milestone) and secured new defense contracts, which could boost near‑term revenue visibility and reinforce defense growth thesis for investors. EPOCH–OneSat Milestone & Contracts
- Neutral Sentiment: Coverage pieces explaining past performance (e.g., why KTOS rose ~95% in Q3) provide useful context on growth drivers and investor sentiment but are retrospective rather than direct catalysts. InsiderMonkey Q3 Analysis
- Negative Sentiment: CEO Eric M. DeMarco sold a large block — 191,699 shares on Jan 6 at an average ~$90.28 (and 8,301 shares on Jan 5 at ~$90.00). Combined, the filings show roughly 200,000 shares sold over two days, with the larger Jan 6 sale reported as a ~21.8% reduction in a particular holding; sizable insider sales can be perceived negatively by the market. SEC filing: CEO SEC Filing
- Negative Sentiment: CFO Deanna H. Lund sold 5,000 shares on Jan 2 at an average of $77.91, a modest reduction but another insider sale that adds to the negative signaling from management transactions. SEC filing: CFO SEC Filing
About Kratos Defense & Security Solutions
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Get Free Report)
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.
Further Reading
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