Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 7.9% After Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s stock price traded down 7.9% on Friday after an insider sold shares in the company. The stock traded as low as $97.34 and last traded at $97.3450. 2,192,522 shares changed hands during mid-day trading, a decline of 44% from the average session volume of 3,913,056 shares. The stock had previously closed at $105.67.

Specifically, SVP Marie Mendoza sold 1,500 shares of the company’s stock in a transaction dated Tuesday, February 17th. The stock was sold at an average price of $88.08, for a total value of $132,120.00. Following the completion of the sale, the senior vice president owned 62,121 shares of the company’s stock, valued at $5,471,617.68. This represents a 2.36% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Phillip D. Carrai sold 6,500 shares of the firm’s stock in a transaction dated Tuesday, February 17th. The shares were sold at an average price of $90.91, for a total value of $590,915.00. Following the sale, the insider owned 213,325 shares of the company’s stock, valued at $19,393,375.75. This represents a 2.96% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing.

Analyst Upgrades and Downgrades

A number of research firms recently commented on KTOS. JonesTrading started coverage on Kratos Defense & Security Solutions in a research note on Monday, January 5th. They issued a “buy” rating for the company. UBS Group initiated coverage on shares of Kratos Defense & Security Solutions in a report on Wednesday. They set a “neutral” rating and a $79.00 target price on the stock. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, January 22nd. Citizens Jmp upped their target price on Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a report on Monday, January 12th. Finally, Noble Financial reissued an “outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $93.83.

Key Stories Impacting Kratos Defense & Security Solutions

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Prometheus Energetics (a JV including Kratos) broke ground on a new solid‑rocket‑motor manufacturing campus in Indiana — expands Kratos’ propulsion/energetics supply chain and capacity, supporting longer‑term revenue opportunities. Read More.
• Positive Sentiment: Kratos expanded its role in hypersonics, satellites and autonomy programs — operational wins in high‑priority defense areas that strengthen the multi‑year growth thesis. Read More.
• Positive Sentiment: The company was awarded a contract to streamline development of hypersonic materials — a technical/contract win that reinforces market positioning in hypersonics. Read More.
• Positive Sentiment: Analyst commentary ahead of earnings points to expected double‑digit revenue growth across unmanned and defense segments — supports the growth outlook entering the upcoming reporting cycle. Read More.
• Neutral Sentiment: Reported short‑interest data in recent filings appears effectively zero/ambiguous — likely a reporting quirk and not an immediate market driver. Neutral
• Negative Sentiment: UBS initiated coverage with a “neutral” rating and a $79 price target (well below recent levels) — a published target materially below the market can weigh on investor sentiment and trigger near‑term selling. Read More.
• Negative Sentiment: Insider sales were disclosed this week (SVP Marie Mendoza sold 1,500 shares; Phillip D. Carrai sold 6,500 shares). While insiders retain large holdings, these filings can be interpreted as near‑term profit taking and may add downward pressure on the stock. Read More. Read More.

Kratos Defense & Security Solutions Stock Performance

The stock has a market cap of $16.75 billion, a price-to-earnings ratio of 759.33 and a beta of 1.09. The company’s 50 day simple moving average is $95.97 and its 200 day simple moving average is $83.80. The company has a debt-to-equity ratio of 0.04, a quick ratio of 3.68 and a current ratio of 4.30.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Several hedge funds and other institutional investors have recently bought and sold shares of the business. Royal Bank of Canada grew its position in Kratos Defense & Security Solutions by 22.6% in the first quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after acquiring an additional 35,098 shares in the last quarter. Amundi bought a new position in shares of Kratos Defense & Security Solutions in the 1st quarter valued at approximately $791,000. NewEdge Advisors LLC lifted its holdings in Kratos Defense & Security Solutions by 64.4% in the 1st quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock worth $39,000 after purchasing an additional 515 shares during the last quarter. Jones Financial Companies Lllp boosted its position in Kratos Defense & Security Solutions by 178.0% during the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock worth $108,000 after purchasing an additional 2,286 shares during the period. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its holdings in Kratos Defense & Security Solutions by 11.7% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock valued at $11,686,000 after purchasing an additional 41,265 shares during the last quarter. 75.92% of the stock is currently owned by institutional investors.

About Kratos Defense & Security Solutions

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.