Kratos Defense & Security Solutions, Inc. $KTOS Position Reduced by Artisan Partners Limited Partnership

Artisan Partners Limited Partnership trimmed its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 27.7% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm owned 782,922 shares of the aerospace company’s stock after selling 299,233 shares during the quarter. Artisan Partners Limited Partnership’s holdings in Kratos Defense & Security Solutions were worth $71,536,000 at the end of the most recent quarter.

A number of other large investors have also made changes to their positions in the company. NewEdge Advisors LLC boosted its stake in Kratos Defense & Security Solutions by 15.2% in the 2nd quarter. NewEdge Advisors LLC now owns 1,515 shares of the aerospace company’s stock worth $70,000 after purchasing an additional 200 shares during the period. USA Financial Formulas raised its stake in Kratos Defense & Security Solutions by 15.7% during the 3rd quarter. USA Financial Formulas now owns 1,660 shares of the aerospace company’s stock valued at $152,000 after purchasing an additional 225 shares during the period. MRP Capital Investments LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 11.1% in the second quarter. MRP Capital Investments LLC now owns 2,500 shares of the aerospace company’s stock valued at $116,000 after purchasing an additional 250 shares in the last quarter. MRA Advisory Group boosted its position in shares of Kratos Defense & Security Solutions by 1.1% in the third quarter. MRA Advisory Group now owns 25,037 shares of the aerospace company’s stock worth $2,288,000 after buying an additional 275 shares during the period. Finally, Nisa Investment Advisors LLC grew its holdings in shares of Kratos Defense & Security Solutions by 11.7% during the second quarter. Nisa Investment Advisors LLC now owns 2,769 shares of the aerospace company’s stock valued at $129,000 after buying an additional 289 shares in the last quarter. Institutional investors and hedge funds own 75.92% of the company’s stock.

Insider Buying and Selling at Kratos Defense & Security Solutions

In related news, Director William A. Hoglund sold 75,000 shares of the firm’s stock in a transaction that occurred on Monday, December 1st. The stock was sold at an average price of $74.35, for a total value of $5,576,250.00. Following the transaction, the director directly owned 147,193 shares of the company’s stock, valued at approximately $10,943,799.55. This trade represents a 33.75% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Scott I. Anderson sold 15,401 shares of the business’s stock in a transaction that occurred on Monday, December 15th. The stock was sold at an average price of $74.51, for a total value of $1,147,528.51. Following the completion of the sale, the director owned 66,334 shares of the company’s stock, valued at approximately $4,942,546.34. This trade represents a 18.84% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 897,907 shares of company stock worth $74,113,293 in the last 90 days. Company insiders own 2.37% of the company’s stock.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Kratos won a $61.1M Navy contract modification for full‑rate production of 70 BQM‑177A subsonic aerial targets — adds near‑term funded revenue and supports production momentum. Kratos Navy Contract
• Positive Sentiment: Kratos completed the Critical Design Review (CDR) for the Space Development Agency’s Advanced Fire Control Ground Infrastructure (AFCGI), de‑risking integration milestones on a major space/ground program and supporting future revenue recognition. CDR Completion
• Positive Sentiment: BTIG raised its price target on KTOS to $115, signaling increased analyst optimism tied to program wins and positioning in unmanned/space markets. BTIG Price Target Raise
• Neutral Sentiment: Kratos reported a Q4 beat (revenue +21.9% YoY, EPS above expectations) and a larger backlog — fundamental positives, but largely anticipated and insufficient to offset near‑term concerns. Q4 Results
• Negative Sentiment: The company priced an underwritten offering of 14,285,714 shares at $84.00 to raise roughly $1.17B (with a 30‑day option), all shares sold by Kratos — a primary offering that increases share count and sparked dilution concerns. The offering is expected to close March 2, 2026. Offering Priced
• Negative Sentiment: Noble Financial reduced its Q1 and Q2 2026 EPS estimates for Kratos (Q1 to $0.09, Q2 to $0.10), signaling near‑term earnings pressure despite an Outperform rating — analyst downgrades or cuts tend to pressure sentiment. Noble Financial Estimates
• Negative Sentiment: After‑hours weakness followed management’s softer Q1 guidance and commentary about cash burn (inventory/production ramps), which overshadowed the Q4 beat and likely triggered short‑term profit taking. After‑hours Fall Explanation
• Negative Sentiment: An insider sold 7,000 shares last week (disclosed SEC filing) — not large versus total holdings but a headline that can add selling pressure. Insider Sale Filing
• Negative Sentiment: Valuation remains a concern (very high P/E multiples), leaving KTOS vulnerable to pullbacks if guidance or cash‑flow timing disappoints. Valuation Concerns

Kratos Defense & Security Solutions Stock Performance

Shares of KTOS opened at $86.18 on Friday. The firm has a market cap of $14.68 billion, a price-to-earnings ratio of 662.97 and a beta of 1.09. The company’s fifty day moving average is $98.13 and its 200-day moving average is $85.06. The company has a quick ratio of 3.68, a current ratio of 4.06 and a debt-to-equity ratio of 0.05. Kratos Defense & Security Solutions, Inc. has a 12 month low of $25.11 and a 12 month high of $134.00.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last issued its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a net margin of 1.63% and a return on equity of 3.34%. The firm had revenue of $345.10 million during the quarter, compared to analysts’ expectations of $327.51 million. During the same period in the prior year, the company posted $0.13 earnings per share. Kratos Defense & Security Solutions’s revenue for the quarter was up 21.9% on a year-over-year basis. Equities analysts expect that Kratos Defense & Security Solutions, Inc. will post 0.31 EPS for the current fiscal year.

Analyst Ratings Changes

Several equities research analysts recently issued reports on KTOS shares. JonesTrading started coverage on Kratos Defense & Security Solutions in a research note on Monday, January 5th. They issued a “buy” rating for the company. Weiss Ratings reiterated a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a report on Thursday, January 22nd. Canaccord Genuity Group raised their price target on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the stock a “buy” rating in a report on Tuesday. Jefferies Financial Group reiterated a “hold” rating and issued a $85.00 price objective on shares of Kratos Defense & Security Solutions in a research note on Thursday, November 6th. Finally, BNP Paribas Exane set a $80.00 target price on shares of Kratos Defense & Security Solutions in a research report on Tuesday, November 18th. One investment analyst has rated the stock with a Strong Buy rating, fifteen have given a Buy rating and six have issued a Hold rating to the stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $98.28.

Kratos Defense & Security Solutions 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.