Key Points
- CEO Eric Demarco sold 300,000 Kratos shares at an average price of $64.33, generating approximately $19.3 million. The transaction, conducted under a pre-arranged Rule 10b5-1 plan, reduced his direct ownership by 28.26% to 761,632 shares.
- Kratos reported a strong latest quarter, with revenue up 30.5% year over year to $458.8 million and EPS of $0.21, exceeding analysts’ estimates of $410.4 million and $0.14.
- Despite a consensus “Moderate Buy” rating and a $99.47 price target, the stock’s valuation remains elevated, with a P/E ratio near 380 and relatively modest profitability. Institutional investors own 75.92% of the company.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CEO Eric Demarco sold 300,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Friday, August 14th. The stock was sold at an average price of $64.33, for a total value of $19,299,000.00. Following the completion of the transaction, the chief executive officer directly owned 761,632 shares in the company, valued at $48,995,786.56. This trade represents a 28.26% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Kratos Defense & Security Solutions Stock Performance
Shares of KTOS stock opened at $64.58 on Friday. The company has a market capitalization of $12.12 billion, a P/E ratio of 379.88 and a beta of 1.08. Kratos Defense & Security Solutions, Inc. has a fifty-two week low of $43.09 and a fifty-two week high of $134.00. The company has a debt-to-equity ratio of 0.04, a quick ratio of 4.99 and a current ratio of 5.54. The stock has a 50 day moving average price of $52.48 and a two-hundred day moving average price of $68.56.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last issued its earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.14 by $0.07. Kratos Defense & Security Solutions had a net margin of 2.03% and a return on equity of 3.07%. The firm had revenue of $458.80 million for the quarter, compared to analysts' expectations of $410.36 million. During the same quarter last year, the business earned $0.11 earnings per share. The business's revenue was up 30.5% on a year-over-year basis. Analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current year.
Institutional Investors Weigh In On Kratos Defense & Security Solutions
A number of large investors have recently modified their holdings of KTOS. New Age Alpha Advisors LLC boosted its position in shares of Kratos Defense & Security Solutions by 435.1% during the fourth quarter. New Age Alpha Advisors LLC now owns 43,011 shares of the aerospace company's stock valued at $3,265,000 after purchasing an additional 34,973 shares in the last quarter. BNP Paribas Financial Markets raised its holdings in Kratos Defense & Security Solutions by 245.2% in the fourth quarter. BNP Paribas Financial Markets now owns 601,674 shares of the aerospace company's stock worth $45,673,000 after purchasing an additional 427,396 shares in the last quarter. M&T Bank Corp raised its holdings in Kratos Defense & Security Solutions by 6,900.4% in the fourth quarter. M&T Bank Corp now owns 176,831 shares of the aerospace company's stock worth $13,423,000 after purchasing an additional 174,305 shares in the last quarter. Principal Financial Group Inc. lifted its position in Kratos Defense & Security Solutions by 65.2% during the fourth quarter. Principal Financial Group Inc. now owns 714,083 shares of the aerospace company's stock valued at $54,206,000 after buying an additional 281,811 shares during the period. Finally, B. Metzler seel. Sohn & Co. AG purchased a new position in Kratos Defense & Security Solutions during the fourth quarter valued at $1,821,000. Institutional investors own 75.92% of the company's stock.
Wall Street Analyst Weigh In
A number of equities analysts have issued reports on KTOS shares. Weiss Ratings cut shares of Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a research report on Wednesday, August 5th. Truist Financial dropped their target price on shares of Kratos Defense & Security Solutions from $135.00 to $104.00 and set a "buy" rating for the company in a report on Thursday. Wedbush initiated coverage on Kratos Defense & Security Solutions in a research note on Tuesday, June 30th. They issued an "outperform" rating and a $85.00 target price on the stock. UBS Group restated a "neutral" rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Finally, JPMorgan Chase & Co. raised Kratos Defense & Security Solutions from a "neutral" rating to an "overweight" rating and lowered their price target for the company from $99.00 to $82.00 in a research report on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, Kratos Defense & Security Solutions currently has an average rating of "Moderate Buy" and a consensus price target of $99.47.
View Our Latest Analysis on KTOS
Kratos Defense & Security Solutions News Summary
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos is reported to have a potential $15 billion opportunity pipeline. Continued defense spending and new contract awards could expand its backlog, revenue, and long-term growth prospects. Can Kratos Defense's $15B Opportunity Pipeline Sustain Growth Momentum?
- Positive Sentiment: Reports from Kratos’s second-quarter earnings call highlighted accelerating demand across its hypersonics, jet-engine, and defense-support businesses. Management said investments in scalable, affordable manufacturing are positioning the company to pursue more Department of Defense contracts. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
- Positive Sentiment: Kratos is participating in a broader rally in drone and defense stocks after new U.S. tariffs on imported drones and components. The policy could improve the competitive position of domestic defense-drone suppliers and increase interest in U.S.-based production. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
- Positive Sentiment: Kratos recently exceeded quarterly expectations, reporting $458.8 million in revenue and $0.21 in earnings per share versus consensus estimates of $410.4 million and $0.14, respectively. Revenue increased 30.5% year over year, reinforcing the growth narrative.
- Neutral Sentiment: Analysts are offering updated forecasts for Kratos’s fiscal 2026 earnings, which may influence expectations as investors assess how quickly the opportunity pipeline converts into funded contracts and profit.
- Negative Sentiment: The bullish outlook carries execution risk. Kratos trades at a very high earnings multiple, while its reported net margin and return on equity remain modest; delays in contract awards or weaker-than-expected cash generation could make the valuation harder to justify.
Kratos Defense & Security Solutions Company Profile
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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.
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