Key Points
- CFO Deanna Lund sold 7,000 Kratos shares for approximately $280,000, reducing her position by 2.56%. The sale was made under a pre-arranged Rule 10b5-1 trading plan.
- Kratos recently secured a $33.6 million NASA-related contract to provide a power conversion system for the nuclear-powered Space Reactor-1 Freedom spacecraft, supporting its space and defense growth profile.
- The company’s latest quarter exceeded expectations, with EPS of $0.21 versus a $0.14 estimate and revenue up 30.5% year over year. Analysts maintain a generally positive outlook, though RBC lowered its price target to $55 from $80 amid valuation concerns.
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS - Get Free Report) CFO Deanna Lund sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, October 26th. The stock was sold at an average price of $40.00, for a total value of $280,000.00. Following the completion of the sale, the chief financial officer directly owned 266,740 shares of the company's stock, valued at approximately $10,669,600. The trade was a 2.56% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.
Kratos Defense & Security Solutions Stock Down 0.3%
KTOS stock opened at $41.17 on Thursday. Kratos Defense & Security Solutions, Inc. has a 1-year low of $36.37 and a 1-year high of $134.00. The business has a fifty day moving average price of $45.80 and a 200-day moving average price of $65.50. The company has a debt-to-equity ratio of 0.04, a current ratio of 5.54 and a quick ratio of 4.99. The stock has a market capitalization of $7.73 billion, a P/E ratio of 242.18 and a beta of 1.11.
Kratos Defense & Security Solutions (NASDAQ:KTOS - Get Free Report) last announced its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.14 by $0.07. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%. The firm had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. During the same period in the prior year, the company posted $0.11 earnings per share. The company's quarterly revenue was up 30.5% on a year-over-year basis. Equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.59 earnings per share for the current fiscal year.
More Kratos Defense & Security Solutions News
Here are the key news stories impacting Kratos Defense & Security Solutions this week:
- Positive Sentiment: Kratos received a $33.6 million contract from Sierra Lobo to design, build and deliver the power conversion system for NASA’s Space Reactor-1 Freedom spacecraft. The nuclear-powered spacecraft is targeted for launch in 2028, adding to Kratos’ space and national-security credentials and providing a new contract win ahead of its third-quarter results. Kratos NASA contract announcement
- Positive Sentiment: Macquarie initiated coverage of KTOS with an Outperform rating, while RBC maintained its Outperform recommendation. These ratings indicate analysts continue to see long-term growth potential from defense technology, space systems and advanced military programs.
- Neutral Sentiment: RBC cut its price target to $55 from $80, reflecting a more cautious valuation outlook, but the new target still implies meaningful upside from the referenced trading level. The conflicting message—lower valuation expectations but a continued Outperform rating—may contribute to volatility. RBC price target update
- Negative Sentiment: CFO Deanna Lund sold 7,000 KTOS shares for approximately $280,000, reducing her holdings by 2.56%. Because the transaction occurred under a pre-arranged Rule 10b5-1 plan, it is a limited bearish signal, but insider selling can still pressure sentiment.
- Negative Sentiment: The broader defense sector has suffered a prolonged sell-off, with the SPDR S&P Aerospace & Defense ETF giving back its 2026 gains. Sector-wide risk aversion may be offsetting some of the positive impact from Kratos’ NASA contract.
Institutional Trading of Kratos Defense & Security Solutions
Several large investors have recently modified their holdings of the company. Bank of New York Mellon Corp bought a new stake in Kratos Defense & Security Solutions during the 2nd quarter valued at approximately $65,293,000. Bamco Inc. NY purchased a new position in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $53,746,000. American Capital Management Inc. bought a new position in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $51,338,000. Paradigm Capital Management Inc. NY bought a new position in Kratos Defense & Security Solutions in the 2nd quarter worth approximately $34,842,000. Finally, Principal Financial Group Inc. boosted its stake in Kratos Defense & Security Solutions by 48.0% in the 1st quarter. Principal Financial Group Inc. now owns 1,056,872 shares of the aerospace company's stock worth $74,520,000 after purchasing an additional 342,789 shares during the period. Institutional investors own 75.92% of the company's stock.
Wall Street Analysts Forecast Growth
KTOS has been the topic of several research analyst reports. Guggenheim started coverage on shares of Kratos Defense & Security Solutions in a research note on Monday, September 14th. They set a "buy" rating and a $74.00 target price on the stock. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a "hold (c)" rating to a "sell (d+)" rating in a report on Wednesday, August 5th. Oppenheimer assumed coverage on shares of Kratos Defense & Security Solutions in a research note on Thursday, October 22nd. They issued an "outperform" rating and a $50.00 price target for the company. The Goldman Sachs Group decreased their price objective on shares of Kratos Defense & Security Solutions from $88.00 to $77.00 and set a "buy" rating for the company in a report on Monday, October 12th. Finally, Barclays began coverage on shares of Kratos Defense & Security Solutions in a research report on Friday, October 9th. They set an "overweight" rating and a $90.00 price objective on the stock. Three investment analysts have rated the stock with a Strong Buy rating, twenty have issued a Buy rating, one has given a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $88.25.
Check Out Our Latest Report on KTOS
Kratos Defense & Security Solutions Company Profile
(
Get Free Report)
Kratos Defense & Security Solutions, Inc is a technology and defense contractor that develops systems and products for national security applications. The company supports the U.S. Department of Defense, intelligence agencies, national security-related organizations and selected commercial customers, with an emphasis on affordable, rapidly deployable technologies.
Its offerings include unmanned aerial and target systems, hypersonic and high-speed systems, rocket and propulsion technologies, satellite communications equipment, microwave electronics, radar and missile-defense systems, electronic warfare solutions, command-and-control systems, and virtual and live training products.
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