Key Points
- Insider sale: Director Steven Fendley sold 7,000 shares at an average price of $92.57 for $647,990, a 2.05% reduction that leaves him with 334,648 shares valued at about $30.98 million.
- Strong Q4 and program wins: Kratos beat Q4 estimates with $345.1M revenue (+21.9% YoY) and $0.18 EPS, and secured a $61.1M Navy contract while completing the SDA AFCGI critical design review, reinforcing near‑term revenue visibility.
- Mixed market view and risks: Analysts hold a consensus "Moderate Buy" (avg. target ~$98.28) with several raised targets to $115–$128, but weak Q1 guidance, ongoing cash burn and a very high P/E (~700) highlight valuation and near‑term downside risks.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Steven Fendley sold 7,000 shares of the stock in a transaction that occurred on Monday, February 23rd. The shares were sold at an average price of $92.57, for a total value of $647,990.00. Following the transaction, the insider directly owned 334,648 shares of the company's stock, valued at $30,978,365.36. The trade was a 2.05% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink.
Kratos Defense & Security Solutions Price Performance
Shares of NASDAQ:KTOS traded up $2.71 during trading on Thursday, reaching $90.94. The stock had a trading volume of 659,063 shares, compared to its average volume of 3,895,833. The company has a debt-to-equity ratio of 0.05, a quick ratio of 3.68 and a current ratio of 4.06. Kratos Defense & Security Solutions, Inc. has a 1-year low of $24.80 and a 1-year high of $134.00. The stock has a market cap of $15.49 billion, a PE ratio of 700.22 and a beta of 1.09. The business has a fifty day moving average price of $97.50 and a 200-day moving average price of $84.86.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share for the quarter, beating analysts' consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The company had revenue of $345.10 million for the quarter, compared to analyst estimates of $327.51 million. During the same quarter last year, the firm posted $0.13 EPS. The firm's revenue for the quarter was up 21.9% on a year-over-year basis. On average, equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.
Institutional Trading of Kratos Defense & Security Solutions
Several institutional investors and hedge funds have recently bought and sold shares of KTOS. Greenleaf Trust lifted its holdings in shares of Kratos Defense & Security Solutions by 2.7% in the fourth quarter. Greenleaf Trust now owns 3,830 shares of the aerospace company's stock valued at $291,000 after purchasing an additional 100 shares in the last quarter. LVW Advisors LLC lifted its stake in Kratos Defense & Security Solutions by 3.0% in the 4th quarter. LVW Advisors LLC now owns 3,665 shares of the aerospace company's stock valued at $278,000 after buying an additional 107 shares in the last quarter. CENTRAL TRUST Co lifted its stake in Kratos Defense & Security Solutions by 7.3% in the 4th quarter. CENTRAL TRUST Co now owns 1,698 shares of the aerospace company's stock valued at $129,000 after buying an additional 115 shares in the last quarter. Quadrant Capital Group LLC grew its holdings in Kratos Defense & Security Solutions by 2.1% during the 4th quarter. Quadrant Capital Group LLC now owns 5,918 shares of the aerospace company's stock valued at $449,000 after buying an additional 122 shares during the last quarter. Finally, Parkside Financial Bank & Trust increased its position in Kratos Defense & Security Solutions by 6.9% during the fourth quarter. Parkside Financial Bank & Trust now owns 1,945 shares of the aerospace company's stock worth $148,000 after buying an additional 125 shares in the last quarter. 75.92% of the stock is currently owned by hedge funds and other institutional investors.
Wall Street Analyst Weigh In
Several brokerages have recently weighed in on KTOS. Piper Sandler started coverage on Kratos Defense & Security Solutions in a report on Wednesday, January 21st. They set a "neutral" rating and a $99.00 target price on the stock. Cantor Fitzgerald restated an "overweight" rating and issued a $115.00 target price on shares of Kratos Defense & Security Solutions in a report on Tuesday. BTIG Research lifted their price target on Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the stock a "buy" rating in a report on Tuesday. B. Riley Financial upped their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a "buy" rating in a report on Friday, January 9th. Finally, Citizens Jmp raised their price objective 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. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus price target of $98.28.
Read Our Latest Research Report on KTOS
Key Headlines Impacting Kratos Defense & Security Solutions
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets, a near‑term revenue book that reinforces its DOD production pipeline and drew analyst upside commentary. Kratos Lands $61.1M Navy Drone Deal—Analysts Eye 17% Upside
- Positive Sentiment: Kratos completed the Critical Design Review for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), validating multi‑partner integration and advancing its role in space/ground architectures — a program milestone that de‑risks future revenue and strengthens program credibility. Kratos Completes Critical Design Review for SDA's AFCGI System
- Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism and providing a bullish reference point for investors after the company’s recent program wins and tech positioning. BTIG Research Increases Kratos Price Target to $115.00
- Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS ahead of estimates) and a larger backlog, showing topline momentum; these fundamentals are supportive but were already priced in ahead of guidance. Kratos Defense Q4 Earnings and Revenues Surpass Estimates
- Neutral Sentiment: Market commentary is mixed — some outlets see KTOS as well‑positioned for long‑term growth in unmanned, hypersonics and space, while others flag valuation risk; these views matter for medium/long‑term positioning but less so for intraday moves. Kratos Stock Poised for Acceleration
- Negative Sentiment: Shares fell after management’s weak Q1 guidance and continued cash burn (inventory/production ramps), which overshadowed the Q4 beat and prompted near‑term growth concerns. Why Kratos (KTOS) Stock Is Falling Today
- Negative Sentiment: An insider (Steven S. Fendley) sold 7,000 shares last week — not a large position relative to total holdings but a headline that can add short‑term selling pressure. SEC Filing: Insider Sale
- Negative Sentiment: Valuation concerns persist (very high P/E multiples by some measures), which leaves KTOS vulnerable to profit‑taking if growth guidance or cash flow timing disappoints. Why Kratos Defense Stock Just Dropped
About Kratos Defense & Security Solutions
(
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.
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