Kratos Defense & Security Solutions (NASDAQ:KTOS) Trading Down 3.5% on Insider Selling

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shares dropped 3.5% on Thursday after an insider sold shares in the company. The stock traded as low as $52.94 and last traded at $54.21. 6,949,270 shares changed hands during trading, an increase of 60% from the average daily volume of 4,356,201 shares. The stock had previously closed at $56.16.

Specifically, insider Phillip D. Carrai sold 6,500 shares of the company’s stock in a transaction on Monday, June 15th. The stock was sold at an average price of $57.74, for a total value of $375,310.00. Following the sale, the insider directly owned 215,052 shares in the company, valued at $12,417,102.48. This represents a 2.93% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Marie Mendoza sold 1,500 shares of Kratos Defense & Security Solutions stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $57.93, for a total value of $86,895.00. Following the sale, the senior vice president owned 64,447 shares of the company’s stock, valued at approximately $3,733,414.71. This represents a 2.27% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on KTOS shares. UBS Group restated a “neutral” rating and issued a $82.00 target price on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. BTIG Research cut their price objective on shares of Kratos Defense & Security Solutions from $115.00 to $100.00 and set a “buy” rating for the company in a research report on Thursday, May 7th. Royal Bank Of Canada reduced their price objective on shares of Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a research note on Thursday, May 7th. Piper Sandler decreased their target price on shares of Kratos Defense & Security Solutions from $99.00 to $75.00 and set a “neutral” rating on the stock in a research report on Thursday, May 7th. Finally, Jefferies Financial Group set a $80.00 target price on shares of Kratos Defense & Security Solutions in a research note on Sunday, May 10th. Three investment analysts have rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average target price of $101.35.

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos reported strong demand in its Defense Rocket Systems business, with Q1 2026 revenue in that segment jumping nearly 46% as missile and propulsion demand continues to rise. Article Title
• Positive Sentiment: The company also completed a cross-country autonomous tractor-trailer deployment supporting NASCAR logistics, highlighting progress in autonomy and defense-adjacent transportation applications that investors may view as a growth catalyst. Article Title
• Neutral Sentiment: Analysts continue to view KTOS favorably overall, with a consensus “Moderate Buy” rating and a high target price relative to recent trading, though some firms have trimmed targets or stayed cautious. Article Title
• Negative Sentiment: Recent insider sales by SVP Marie Mendoza and insider Phillip D. Carrai may be weighing on sentiment, even though both transactions were made under pre-arranged 10b5-1 trading plans. Article Title
• Negative Sentiment: One article specifically notes KTOS stock has been down, suggesting investors may be reacting to the insider activity and broader valuation concerns after a strong prior run. Article Title

Kratos Defense & Security Solutions Stock Down 3.5%

The firm has a market capitalization of $10.17 billion, a PE ratio of 318.88 and a beta of 1.04. The company has a current ratio of 5.63, a quick ratio of 5.08 and a debt-to-equity ratio of 0.04. The firm has a 50-day moving average of $61.58 and a two-hundred day moving average of $79.77.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last posted its quarterly earnings results on Wednesday, May 6th. The aerospace company reported $0.16 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.13 by $0.03. The firm had revenue of $371.00 million during the quarter, compared to the consensus estimate of $345.00 million. Kratos Defense & Security Solutions had a return on equity of 2.82% and a net margin of 2.08%.The firm’s quarterly revenue was up 22.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.12 earnings per share. On average, equities research analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.5 EPS for the current year.

Institutional Trading of Kratos Defense & Security Solutions

A number of institutional investors and hedge funds have recently bought and sold shares of KTOS. Mcguire Capital Advisors Inc. purchased a new stake in Kratos Defense & Security Solutions during the fourth quarter worth approximately $25,000. Atlantic Union Bankshares Corp boosted its position in Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after purchasing an additional 380 shares during the period. Vision Retirement LLC boosted its position in Kratos Defense & Security Solutions by 288.2% during the 1st quarter. Vision Retirement LLC now owns 427 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 317 shares during the period. Rakuten Securities Inc. acquired a new stake in Kratos Defense & Security Solutions in the 2nd quarter valued at $31,000. Finally, Caitlin John LLC acquired a new stake in Kratos Defense & Security Solutions in the 3rd quarter valued at $32,000. Institutional investors and hedge funds own 75.92% of the company’s stock.

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.