Trivium Point Advisory LLC Cuts Stock Holdings in Kratos Defense & Security Solutions, Inc. $KTOS

Trivium Point Advisory LLC reduced its position in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 32.1% in the third quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The fund owned 15,207 shares of the aerospace company’s stock after selling 7,199 shares during the period. Trivium Point Advisory LLC’s holdings in Kratos Defense & Security Solutions were worth $1,389,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also added to or reduced their stakes in the company. Rovida Advisors Inc. purchased a new position in shares of Kratos Defense & Security Solutions in the second quarter worth $82,315,000. Franklin Resources Inc. increased its holdings in Kratos Defense & Security Solutions by 29.6% in the 2nd 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 in the last quarter. Westfield Capital Management Co. LP purchased a new position in Kratos Defense & Security Solutions in the 3rd quarter worth about $91,901,000. First Trust Advisors LP raised its position in Kratos Defense & Security Solutions by 29.1% in the 2nd quarter. First Trust Advisors LP now owns 2,370,085 shares of the aerospace company’s stock worth $110,090,000 after buying an additional 533,912 shares during the last quarter. Finally, Seven Grand Managers LLC bought a new position in Kratos Defense & Security Solutions during the 2nd quarter valued at about $23,225,000. 75.92% of the stock is owned by institutional investors.

Kratos Defense & Security Solutions Trading Down 6.5%

Shares of KTOS stock opened at $86.18 on Friday. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.68. The company has a market cap of $14.68 billion, a price-to-earnings ratio of 662.97 and a beta of 1.09. Kratos Defense & Security Solutions, Inc. has a 1 year low of $25.11 and a 1 year high of $134.00. The firm has a fifty day moving average price of $98.13 and a 200-day moving average price of $85.17.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its earnings results on Monday, February 23rd. The aerospace company reported $0.18 EPS for the quarter, topping analysts’ consensus estimates of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.34% and a net margin of 1.63%.The company had revenue of $345.10 million for the quarter, compared to analysts’ expectations of $327.51 million. During the same period last year, the firm earned $0.13 EPS. Kratos Defense & Security Solutions’s revenue for the quarter was up 21.9% compared to the same quarter last year. As a group, equities analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current year.

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

Analyst Ratings Changes

A number of brokerages have recently commented on KTOS. The Goldman Sachs Group lifted 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 note on Tuesday, January 20th. UBS Group began coverage on shares of Kratos Defense & Security Solutions in a research report on Wednesday, February 18th. They issued a “neutral” rating and a $79.00 target price for the company. Stifel Nicolaus increased their price target on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Truist Financial set a $135.00 price target on Kratos Defense & Security Solutions in a research note on Friday, January 9th. Finally, Citigroup reiterated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday. One research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of “Moderate Buy” and an average price target of $98.28.

Insider Activity

In related news, CEO Eric M. Demarco sold 200,000 shares of the stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $74.09, for a total value of $14,818,000.00. Following the completion of the sale, the chief executive officer directly owned 1,196,237 shares of the company’s stock, valued at approximately $88,629,199.33. This represents a 14.32% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Scott I. Anderson sold 15,401 shares of the company’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 transaction of $1,147,528.51. Following the completion of the transaction, the director owned 66,334 shares of the company’s stock, valued at approximately $4,942,546.34. The trade was a 18.84% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last quarter, insiders sold 897,907 shares of company stock worth $74,113,293. 2.37% of the stock is currently owned by corporate insiders.

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.