Waterloo Capital L.P. Has $1.91 Million Stock Position in Kratos Defense & Security Solutions, Inc. $KTOS

Waterloo Capital L.P. cut its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 40.5% during the third quarter, according to the company in its most recent 13F filing with the Securities and Exchange Commission. The firm owned 20,924 shares of the aerospace company’s stock after selling 14,246 shares during the period. Waterloo Capital L.P.’s holdings in Kratos Defense & Security Solutions were worth $1,912,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds also recently modified their holdings of the company. Bayforest Capital Ltd acquired a new position in Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. Whittier Trust Co. acquired a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter valued at $38,000. Sound Income Strategies LLC bought a new position in shares of Kratos Defense & Security Solutions in the 3rd quarter worth $51,000. Rakuten Securities Inc. acquired a new stake in shares of Kratos Defense & Security Solutions during the second quarter worth $31,000. Finally, TD Waterhouse Canada Inc. acquired a new position in Kratos Defense & Security Solutions in the second quarter valued at about $30,000. Institutional investors own 75.92% of the company’s stock.

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 Stock Up 10.7%

Shares of KTOS stock opened at $94.41 on Friday. Kratos Defense & Security Solutions, Inc. has a 12-month low of $23.90 and a 12-month high of $134.00. The company has a quick ratio of 3.68, a current ratio of 4.30 and a debt-to-equity ratio of 0.04. The firm has a fifty day moving average of $92.79 and a 200-day moving average of $81.59. The company has a market capitalization of $15.94 billion, a price-to-earnings ratio of 726.29 and a beta of 1.09.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its 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 firm had revenue of $347.60 million during the quarter, compared to analyst estimates of $323.01 million. During the same period in the prior year, the business earned $0.11 EPS. The company’s revenue for the quarter was up 26.0% compared to the same quarter last year. As a group, equities research analysts predict that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, insider Stacey G. Rock sold 16,568 shares of the company’s stock in a transaction that occurred on Monday, January 12th. The stock was sold at an average price of $116.74, for a total transaction of $1,934,148.32. Following the completion of the transaction, the insider owned 26,487 shares of the company’s stock, valued at $3,092,092.38. This represents a 38.48% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, Director William A. Hoglund sold 75,000 shares of Kratos Defense & Security Solutions stock in a transaction that occurred on Monday, December 1st. The shares were sold at an average price of $74.35, for a total transaction of $5,576,250.00. Following the completion of the sale, the director owned 147,193 shares in the company, valued at $10,943,799.55. This trade represents a 33.75% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 916,815 shares of company stock valued at $75,023,021 over the last ninety days. Company insiders own 2.37% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on KTOS. Piper Sandler assumed coverage on Kratos Defense & Security Solutions in a research note on Wednesday, January 21st. They issued a “neutral” rating and a $99.00 price target for the company. BNP Paribas Exane set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, November 18th. Citizens Jmp increased their target price on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the stock a “market outperform” rating in a report on Monday, January 12th. Stifel Nicolaus boosted their price target on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Finally, Truist Financial set a $135.00 price objective on shares of Kratos Defense & Security Solutions in a research report on Friday, January 9th. One investment analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $95.28.

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.