Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 6.7% After Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS)’s share price dropped 6.7% during mid-day trading on Thursday following insider selling activity. The stock traded as low as $84.50 and last traded at $85.25. Approximately 3,521,948 shares were traded during mid-day trading, a decline of 18% from the average daily volume of 4,321,294 shares. The stock had previously closed at $91.33.

Specifically, CFO Deanna H. Lund sold 5,000 shares of the business’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $96.87, for a total value of $484,350.00. Following the transaction, the chief financial officer directly owned 274,983 shares in the company, valued at $26,637,603.21. The trade was a 1.79% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Scot B. Jarvis sold 5,000 shares of the firm’s stock in a transaction that occurred on Wednesday, January 28th. The stock was sold at an average price of $118.28, for a total transaction of $591,400.00. Following the sale, the director directly owned 100,417 shares of the company’s stock, valued at approximately $11,877,322.76. The trade was a 4.74% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure.

Wall Street Analyst Weigh In

KTOS has been the topic of a number of research analyst reports. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Monday, January 12th. KeyCorp boosted their price objective on Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. BNP Paribas Exane set a $80.00 target price on Kratos Defense & Security Solutions in a research note on Tuesday, November 18th. Piper Sandler assumed coverage on Kratos Defense & Security Solutions in a report on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target for the company. Finally, The Goldman Sachs Group upped their price target on shares of Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the stock a “buy” rating in a research report on Tuesday, January 20th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have given a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Moderate Buy” and an average price target of $95.28.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Taiwan partnership and drone production ramp — Kratos and Taiwan’s military successfully tested a jet-powered attack drone aimed at rapidly fielding low-cost, attritable aircraft, a material international contract/partnership that supports near-term production and revenue growth. Taiwan teams with US firm Kratos to build attack drones to counter China
• Positive Sentiment: Successful integrated Mighty Hornet IV test — Kratos and NCSIST validated the integrated Mighty Hornet IV system, reinforcing international demand for Kratos’ attritable and integrated drone/weapon solutions. This demonstrates exportable tech and program traction. Kratos, NCSIST Team Successfully Test Integrated Mighty Hornet IV System
• Positive Sentiment: Analyst/market coverage turning favorable — Coverage notes (Zacks, MarketBeat) highlight strong recent share gains, contract wins, hypersonics expansion and rising price targets from major brokers, which supports investor appetite and higher upside expectations. KTOS Stock Rises 17.7% in 3 Months
• Neutral Sentiment: Training and simulation wins noted — Coverage (Yahoo/Business Insider) flags Kratos’ training and simulation contracts as potential durable edges, but these are longer-duration revenue streams and less immediately accretive than production contracts. Do Kratos (KTOS) Training Wins Hint At A Durable Edge In Defense Simulation?
• Neutral Sentiment: Momentum / thematic coverage — MarketBeat and others include KTOS in lists of high-risk/high-reward defense stocks that outperformed in 2025; useful for sentiment but not a direct operational catalyst. Earnings scheduled late February remain the next major event. 3 High-Risk Stocks That Soared in 2025 But Can Still Fly Higher (KTOS)
• Negative Sentiment: Insider selling — CFO Deanna Lund sold 5,000 shares (~$484k) and insider David M. Carter sold 4,000 shares (~$350k) in early Feb. Multiple insider sales can weigh on sentiment even as executives retain substantial positions. SEC filing for Carter’s sale: SEC filing: Carter sale SEC filing: Lund sale

Kratos Defense & Security Solutions Trading Up 10.7%

The company has a debt-to-equity ratio of 0.04, a quick ratio of 3.68 and a current ratio of 4.30. The company has a market capitalization of $15.94 billion, a price-to-earnings ratio of 726.29 and a beta of 1.09. The business’s 50-day simple moving average is $92.79 and its 200-day simple moving average is $81.59.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Tuesday, November 4th. The aerospace company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.12 by $0.02. Kratos Defense & Security Solutions had a net margin of 1.56% and a return on equity of 3.14%. The business had revenue of $347.60 million during the quarter, compared to the consensus estimate of $323.01 million. During the same period in the previous year, the firm posted $0.11 earnings per share. Kratos Defense & Security Solutions’s revenue for the quarter was up 26.0% compared to the same quarter last year. On average, research analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of institutional investors have recently made changes to their positions in the stock. Amalgamated Bank grew its stake in Kratos Defense & Security Solutions by 57.7% in the third quarter. Amalgamated Bank now owns 73,673 shares of the aerospace company’s stock valued at $6,732,000 after purchasing an additional 26,946 shares in the last quarter. Mission Wealth Management LP acquired a new stake in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at approximately $1,828,000. Baillie Gifford & Co. bought a new position in shares of Kratos Defense & Security Solutions in the third quarter valued at $19,048,000. ARK Investment Management LLC increased its holdings in Kratos Defense & Security Solutions by 22.2% during the second quarter. ARK Investment Management LLC now owns 4,507,692 shares of the aerospace company’s stock worth $209,382,000 after buying an additional 818,104 shares during the last quarter. Finally, WCM Investment Management LLC bought a new stake in Kratos Defense & Security Solutions during the third quarter worth $17,922,000. 75.92% of the stock is owned by institutional investors and hedge funds.

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.