Key Points
- Insider sale: Stacey Rock sold 4,000 KTOS shares at an average of $90.28 on Feb. 26 for $361,120, leaving her with 22,566 shares — a 15.06% reduction in her holdings.
- Operational and earnings momentum: Kratos beat Q4 estimates (revenue +21.9% YoY, EPS $0.18 vs $0.14 est.), won a $61.1M Navy contract for BQM‑177A production, and completed the CDR for the SDA AFCGI program.
- Near‑term risks and dilution: Management issued softer Q1 guidance and flagged cash‑burn concerns, and the company priced a primary offering of 14,285,714 shares at $84 to raise about $1.17B, sparking dilution worries and after‑hours weakness.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) insider Stacey Rock sold 4,000 shares of the business's stock in a transaction dated Thursday, February 26th. The stock was sold at an average price of $90.28, for a total value of $361,120.00. Following the completion of the sale, the insider owned 22,566 shares in the company, valued at $2,037,258.48. This represents a 15.06% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website.
Kratos Defense & Security Solutions Stock Performance
NASDAQ KTOS opened at $86.18 on Friday. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.68. Kratos Defense & Security Solutions, Inc. has a 1-year low of $25.11 and a 1-year high of $134.00. The business has a 50 day simple moving average of $98.13 and a two-hundred day simple moving average of $85.06. The stock has a market capitalization of $14.68 billion, a PE ratio of 662.97 and a beta of 1.09.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, topping the consensus estimate 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 business had revenue of $345.10 million for the quarter, compared to analysts' expectations of $327.51 million. During the same period in the prior year, the firm earned $0.13 EPS. The company's revenue for the quarter was up 21.9% on a year-over-year basis. On average, research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.
Kratos Defense & Security Solutions News Roundup
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 — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
- Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
- Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
- Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
- Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
- Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
- Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
- Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
- Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns
Analyst Upgrades and Downgrades
Several brokerages have recently issued reports on KTOS. Stifel Nicolaus upped their target price on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a "buy" rating in a research report on Tuesday, January 13th. BNP Paribas Exane set a $80.00 price objective on Kratos Defense & Security Solutions in a research report on Tuesday, November 18th. B. Riley Financial raised their price objective on Kratos Defense & Security Solutions from $105.00 to $128.00 and gave the company a "buy" rating in a research note on Friday, January 9th. Truist Financial set a $135.00 target price on Kratos Defense & Security Solutions in a research report on Friday, January 9th. Finally, Piper Sandler assumed 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 for the company. One investment analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the company's stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has a consensus rating of "Moderate Buy" and an average target price of $98.28.
Read Our Latest Report on KTOS
Institutional Trading of Kratos Defense & Security Solutions
Large investors have recently made changes to their positions in the stock. Mcguire Capital Advisors Inc. purchased a new position in Kratos Defense & Security Solutions in the 4th quarter worth about $25,000. Bayforest Capital Ltd purchased a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at about $32,000. Caitlin John LLC bought a new position in Kratos Defense & Security Solutions in the 3rd quarter worth about $32,000. Atlantic Union Bankshares Corp increased its position in shares of 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 acquiring an additional 380 shares during the period. Finally, Whittier Trust Co. bought a new stake in shares of Kratos Defense & Security Solutions during the third quarter valued at approximately $38,000. 75.92% of the stock is owned by hedge funds and other institutional investors.
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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