Kratos Defense & Security Solutions (NASDAQ:KTOS) Director Scot Jarvis Sells 5,000 Shares of Stock

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Director Scot Jarvis sold 5,000 shares of the company’s stock in a transaction on Thursday, February 26th. The shares were sold at an average price of $88.00, for a total transaction of $440,000.00. Following the sale, the director owned 90,417 shares of the company’s stock, valued at $7,956,696. This represents a 5.24% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink.

Kratos Defense & Security Solutions Trading Down 6.5%

KTOS opened at $86.18 on Friday. The firm has a market capitalization of $14.68 billion, a price-to-earnings ratio of 662.97 and a beta of 1.09. The business has a 50 day simple moving average of $98.13 and a two-hundred day simple moving average of $85.06. Kratos Defense & Security Solutions, Inc. has a one year low of $25.11 and a one year high of $134.00. The company has a debt-to-equity ratio of 0.05, a current ratio of 4.06 and a quick ratio of 3.68.

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

Kratos Defense & Security Solutions News Summary

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

Several equities analysts have recently weighed in on KTOS shares. Citizens Jmp raised their price target on Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a report on Monday, January 12th. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday. KeyCorp upped their target price on shares of Kratos Defense & Security Solutions from $90.00 to $130.00 and gave the stock an “overweight” rating in a research note on Wednesday, January 28th. Jefferies Financial Group reissued a “hold” rating and set a $85.00 price target on shares of Kratos Defense & Security Solutions in a research report on Thursday, November 6th. Finally, BNP Paribas Exane set a $80.00 price objective on shares of Kratos Defense & Security Solutions in a report on Tuesday, November 18th. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $98.28.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently made changes to their positions in the business. Franklin Resources Inc. increased its position in Kratos Defense & Security Solutions by 29.6% in the second quarter. Franklin Resources Inc. now owns 5,086,494 shares of the aerospace company’s stock worth $236,268,000 after purchasing an additional 1,162,577 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Kratos Defense & Security Solutions by 3.5% during the 4th quarter. Geode Capital Management LLC now owns 4,446,230 shares of the aerospace company’s stock worth $337,565,000 after buying an additional 148,622 shares in the last quarter. Morgan Stanley raised its holdings in shares of Kratos Defense & Security Solutions by 3.9% in the 4th quarter. Morgan Stanley now owns 3,311,095 shares of the aerospace company’s stock valued at $251,345,000 after purchasing an additional 124,607 shares in the last quarter. First Trust Advisors LP increased its holdings in shares of Kratos Defense & Security Solutions by 29.5% in the 3rd quarter. First Trust Advisors LP now owns 3,068,863 shares of the aerospace company’s stock valued at $280,402,000 after acquiring an additional 698,778 shares during the period. Finally, Invesco Ltd. grew its stake in Kratos Defense & Security Solutions by 7.4% in the third quarter. Invesco Ltd. now owns 3,046,194 shares of the aerospace company’s stock valued at $278,331,000 after purchasing an additional 209,189 shares during the last quarter. Institutional investors own 75.92% of the company’s stock.

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.