Pinnacle Wealth Management LLC Makes New $2.32 Million Investment in Kratos Defense & Security Solutions, Inc. $KTOS

Pinnacle Wealth Management LLC acquired a new stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) during the third quarter, according to its most recent disclosure with the SEC. The institutional investor acquired 25,332 shares of the aerospace company’s stock, valued at approximately $2,315,000. Kratos Defense & Security Solutions comprises about 1.6% of Pinnacle Wealth Management LLC’s investment portfolio, making the stock its 23rd biggest position.

Several other large investors also recently modified their holdings of the company. Rovida Advisors Inc. bought a new stake in Kratos Defense & Security Solutions during the second quarter valued at $82,315,000. Franklin Resources Inc. lifted its stake in shares of 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 valued at $236,268,000 after purchasing an additional 1,162,577 shares during the period. Westfield Capital Management Co. LP bought a new stake in shares of Kratos Defense & Security Solutions during the 3rd quarter valued at about $91,901,000. First Trust Advisors LP boosted its position in shares of Kratos Defense & Security Solutions by 29.1% during the 2nd quarter. First Trust Advisors LP now owns 2,370,085 shares of the aerospace company’s stock valued at $110,090,000 after purchasing an additional 533,912 shares in the last quarter. Finally, Seven Grand Managers LLC acquired a new stake in Kratos Defense & Security Solutions during the second quarter worth approximately $23,225,000. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Insider Buying and Selling

In other Kratos Defense & Security Solutions news, Director William A. Hoglund sold 75,000 shares of the firm’s stock in a transaction on Monday, December 1st. The stock was sold at an average price of $74.35, for a total transaction of $5,576,250.00. Following the transaction, the director directly owned 147,193 shares in the company, 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 the SEC website. Also, CEO Eric M. Demarco sold 200,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, December 1st. The stock was sold at an average price of $74.09, for a total transaction of $14,818,000.00. Following the transaction, the chief executive officer directly owned 1,196,237 shares in the company, valued at $88,629,199.33. This represents a 14.32% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 888,907 shares of company stock valued at $73,312,173. 2.37% of the stock is currently owned by company insiders.

Kratos Defense & Security Solutions Stock Down 2.7%

Shares of NASDAQ KTOS opened at $88.23 on Thursday. 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 50-day moving average price of $97.50 and a 200-day moving average price of $84.86. The stock has a market capitalization of $15.03 billion, a P/E ratio of 678.74 and a beta of 1.09. Kratos Defense & Security Solutions, Inc. has a 1 year low of $24.61 and a 1 year high of $134.00.

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

Kratos Defense & Security Solutions News Roundup

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

• Positive Sentiment: Kratos won a $61.1M Navy contract for 70 BQM‑177A subsonic aerial targets, reinforcing its Defense pipeline and near‑term revenue visibility. Kratos Lands $61.1M Navy Drone Deal—Analysts Eye 17% Upside
• Positive Sentiment: Q4 results beat consensus: revenue +21.9% YoY to $345.1M, adjusted EPS ahead of estimates and a growing backlog—evidence of strong demand across unmanned, rockets and space programs. Kratos Defense Q4 Earnings and Revenues Surpass Estimates
• Positive Sentiment: Analysts reacted with some bullish moves (BTIG raised its price target to $115) and sector coverage that highlights Kratos’ exposure to hypersonics, drones and space—supporting upside potential. KTOS Price Target Raised at BTIG
• Positive Sentiment: Management expects substantial growth in hypersonics (guidance to ~ $400M in 2026) and is ramping Valkyrie drone production—key secular drivers if execution continues. Kratos anticipates doubling hypersonic revenue to $400M in 2026
• Neutral Sentiment: Analyst commentary and sector comparisons remain mixed—Kratos is frequently highlighted as a high‑growth play vs. larger defense peers, but views vary on timing and valuation. LMT vs. KTOS: Which Defense Stock Is Better Positioned for 2026?
• Negative Sentiment: Weak near‑term guidance and cash‑flow/headwind concerns—management flagged a softer Q1 and higher inventory/production spending—prompted profit‑taking despite the beat. That guidance was the main reason shares sold off after results. Why Kratos (KTOS) Stock Is Falling Today
• Negative Sentiment: Valuation is very rich relative to fundamentals (multiple commentary and bears point to a high forward PE), raising sensitivity to any guidance misses. Why Kratos Defense Stock Just Dropped
• Negative Sentiment: An insider sale (Steven S. Fendley sold 7,000 shares) was disclosed this week; while modest relative to his holdings, insider sales can weigh on sentiment. Insider Trading Filing (SEC)

Analyst Upgrades and Downgrades

A number of research firms have issued reports on KTOS. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday. Truist Financial set a $135.00 target price on shares of Kratos Defense & Security Solutions in a research report on Friday, January 9th. Stifel Nicolaus raised their price target on shares of Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a report on Tuesday, January 13th. Canaccord Genuity Group lifted their price target on shares of Kratos Defense & Security Solutions from $120.00 to $125.00 and gave the company a “buy” rating in a research note on Tuesday. Finally, Citizens Jmp increased their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the stock a “market outperform” rating in a research report on Monday, January 12th. One equities research analyst has rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target 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.