Vestmark Advisory Solutions Inc. Reduces Position in Kratos Defense & Security Solutions, Inc. $KTOS

Vestmark Advisory Solutions Inc. decreased its holdings in shares of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 57.5% in the 3rd quarter, according to its most recent Form 13F filing with the SEC. The firm owned 43,399 shares of the aerospace company’s stock after selling 58,708 shares during the period. Vestmark Advisory Solutions Inc.’s holdings in Kratos Defense & Security Solutions were worth $3,965,000 at the end of the most recent quarter.

Other hedge funds also recently added to or reduced their stakes in the company. Amalgamated Bank boosted its holdings in shares of Kratos Defense & Security Solutions by 57.7% in the third quarter. Amalgamated Bank now owns 73,673 shares of the aerospace company’s stock valued at $6,732,000 after acquiring an additional 26,946 shares in the last quarter. Mission Wealth Management LP acquired a new stake in shares of Kratos Defense & Security Solutions during the 3rd quarter valued at approximately $1,828,000. Baillie Gifford & Co. acquired a new stake in shares of Kratos Defense & Security Solutions in the 3rd quarter worth approximately $19,048,000. WCM Investment Management LLC purchased a new stake in Kratos Defense & Security Solutions during the third quarter worth $17,922,000. Finally, New York State Teachers Retirement System raised its stake in shares of Kratos Defense & Security Solutions by 59.4% during the 3rd quarter. New York State Teachers Retirement System now owns 108,525 shares of the aerospace company’s stock worth $9,916,000 after buying an additional 40,440 shares during the last quarter. 75.92% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Kratos Defense & Security Solutions

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

• Positive Sentiment: Q4 revenue and non‑GAAP EPS beat estimates (Q4 revenue $345.1M, +21.9% YoY; non‑GAAP EPS $0.18), showing strong organic growth across government and unmanned systems. Kratos Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Management highlighted a major ramp in hypersonics (guiding hypersonic revenue toward ~$400M in 2026) and increased Valkyrie drone output, which support faster growth in high‑priority defense markets. Kratos anticipates doubling hypersonic revenue…
• Positive Sentiment: New program awards: a joint $12.4M Air Force award with GE to design the GEK1500 engine and Pentagon hypersonics/materials work — these contracts deepen Kratos’ footprint in priority defense programs. Kratos and GE Aerospace Win U.S. Air Force Award…
• Neutral Sentiment: Balance sheet and cash improved materially (cash +70% YoY to ~$560M), which reduces funding risk as Kratos scales production and makes program investments. Kratos Defense & Security Solutions Inc. (KTOS) Stock Falls on Q4 2025 Earnings
• Neutral Sentiment: Street note: several analysts and outlets re‑examined valuation after the beat; some see growth priced in (UBS initiated Neutral), so upside depends on execution and milestone delivery. A Look At Kratos Defense & Security Solutions (KTOS) Valuation…
• Negative Sentiment: Near‑term softness: Q1 revenue guidance ($335M–$345M) printed slightly below consensus (~$347M), and management warned a potential federal shutdown could dent Q1, which prompted a pullback despite the beat. Kratos (NASDAQ:KTOS) Delivers Impressive Q4 CY2025
• Negative Sentiment: Significant insider selling activity reported in Q4 (multiple senior executives sold shares), which investors often view as a near‑term negative signal for sentiment. Kratos Defense & Security Solutions Inc. (KTOS) Stock Falls on Q4 2025 Earnings

Analyst Upgrades and Downgrades

A number of research firms recently commented on KTOS. BTIG Research increased their price objective on Kratos Defense & Security Solutions from $95.00 to $115.00 and gave the company a “buy” rating in a research note on Tuesday. Weiss Ratings reaffirmed a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, January 22nd. Stifel Nicolaus upped 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 research report on Tuesday, January 13th. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday. Finally, UBS Group began coverage on Kratos Defense & Security Solutions in a report on Wednesday, February 18th. They set a “neutral” rating and a $79.00 target price on the stock. One research analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and six have assigned a Hold rating to the company’s stock. According to MarketBeat.com, Kratos Defense & Security Solutions currently has a consensus rating of “Moderate Buy” and a consensus target price of $94.94.

Kratos Defense & Security Solutions Stock Performance

Shares of Kratos Defense & Security Solutions stock opened at $94.31 on Tuesday. The company has a debt-to-equity ratio of 0.04, a quick ratio of 3.68 and a current ratio of 4.30. Kratos Defense & Security Solutions, Inc. has a 1 year low of $23.90 and a 1 year high of $134.00. The firm’s 50-day simple moving average is $96.78 and its 200-day simple moving average is $84.65. The firm has a market cap of $16.06 billion, a PE ratio of 725.52 and a beta of 1.09.

Kratos Defense & Security Solutions (NASDAQ:KTOS) last announced its quarterly earnings data on Monday, February 23rd. The aerospace company reported $0.18 earnings per share for the quarter, beating the consensus estimate of $0.14 by $0.04. Kratos Defense & Security Solutions had a return on equity of 3.14% and a net margin of 1.56%.The firm had revenue of $345.10 million during the quarter, compared to analyst estimates of $327.51 million. During the same period in the previous year, the company earned $0.13 earnings per share. Kratos Defense & Security Solutions’s quarterly revenue was up 21.9% on a year-over-year basis. Equities analysts forecast that Kratos Defense & Security Solutions, Inc. will post 0.31 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, CEO Eric M. Demarco sold 200,000 shares of the stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $74.09, for a total transaction of $14,818,000.00. Following the sale, the chief executive officer 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 transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Deanna H. Lund sold 30,000 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 $74.08, for a total value of $2,222,400.00. Following the completion of the transaction, the chief financial officer owned 273,285 shares of the company’s stock, valued at approximately $20,244,952.80. The trade was a 9.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last three months, insiders sold 881,907 shares of company stock worth $72,664,183. Corporate insiders own 2.37% of the company’s stock.

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.