Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Price Down 9.1% After Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) was down 9.1% during trading on Friday after an insider sold shares in the company. The stock traded as low as $95.43 and last traded at $96.08. Approximately 4,613,363 shares traded hands during mid-day trading, an increase of 15% from the average daily volume of 3,995,141 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 shares were sold at an average price of $88.08, for a total transaction 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 transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Also, insider Phillip D. Carrai sold 6,500 shares of the stock in a transaction that occurred on Tuesday, February 17th. The stock was sold at an average price of $90.91, for a total transaction of $590,915.00. Following the sale, the insider owned 213,325 shares in the company, valued at $19,393,375.75. This represents a 2.96% decrease in their position. The disclosure for this sale is available in the SEC filing.

Analyst Upgrades and Downgrades

KTOS has been the subject of several research analyst reports. Jefferies Financial Group restated a “hold” rating and set a $85.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Thursday, November 6th. UBS Group began coverage on Kratos Defense & Security Solutions in a research report on Wednesday. They set a “neutral” rating and a $79.00 price objective for the company. JonesTrading initiated coverage on Kratos Defense & Security Solutions in a research note on Monday, January 5th. They issued a “buy” rating on the stock. BTIG Research lifted their target price on Kratos Defense & Security Solutions from $80.00 to $95.00 and gave the company a “buy” rating in a research report on Thursday, November 6th. Finally, Noble Financial restated an “outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus target price of $93.83.

More Kratos Defense & Security Solutions News

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

• Positive Sentiment: Prometheus Energetics (a JV that includes Kratos) broke ground on a new solid rocket motor campus in Indiana—this expands Kratos’ propulsion/energetics capability and supports longer‑term revenue potential. Prometheus Energetics Breaks Ground
• Positive Sentiment: Kratos announced expanded roles in hypersonics, satellites and autonomy programs—operational wins in high‑priority defense segments that support multi‑year growth expectations. Kratos Expands Role In Hypersonics
• Positive Sentiment: Kratos won a contract to streamline hypersonic materials development—a technical contract that reinforces its addressable market in hypersonics. Hypersonic Materials Contract
• Neutral Sentiment: Reported short‑interest figures are effectively zero/ambiguous (likely a reporting/data quirk) and are unlikely to be a material driver of today’s move.
• Negative Sentiment: UBS initiated coverage with a “neutral” rating and a $79 price target—this published target sits well below recent trading levels and can directly weaken sentiment and trigger selling pressure. UBS Initiates Coverage
• Negative Sentiment: Two insiders disclosed sales (SVP Marie Mendoza sold 1,500 shares at ~$88.08; Phillip D. Carrai sold 6,500 shares at ~$90.91). While both still hold large positions, the filings read as near‑term profit taking and likely added to downward pressure. Insider Sale Filings Insider Sale Filings 2

Kratos Defense & Security Solutions Trading Down 9.1%

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 firm has a market cap of $16.37 billion, a P/E ratio of 739.13 and a beta of 1.09. The business’s fifty day moving average is $96.38 and its 200-day moving average is $84.22.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently bought and sold shares of the stock. Alliancebernstein L.P. boosted its holdings in Kratos Defense & Security Solutions by 1,389.0% in the third quarter. Alliancebernstein L.P. now owns 2,707,776 shares of the aerospace company’s stock valued at $247,409,000 after acquiring an additional 2,525,921 shares during the last quarter. Rovida Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 2nd quarter worth approximately $82,315,000. Corient Private Wealth LLC boosted its stake in shares of Kratos Defense & Security Solutions by 7,701.6% in the 4th quarter. Corient Private Wealth LLC now owns 1,593,549 shares of the aerospace company’s stock valued at $120,966,000 after purchasing an additional 1,573,123 shares during the last quarter. Norges Bank bought a new stake in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $104,807,000. Finally, Franklin Resources Inc. increased its position in shares of Kratos Defense & Security Solutions by 29.6% during the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after buying an additional 1,162,577 shares during the period. 75.92% of the stock is owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Company Profile

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.