Insider Selling: Kratos Defense & Security Solutions (NASDAQ:KTOS) CEO Sells 300,000 Shares of Stock

Posted by Francis Steltz on Aug 14th, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) CEO Eric Demarco sold 300,000 shares of the firm’s stock in a transaction that occurred on Friday, August 14th. The shares were sold at an average price of $64.33, for a total transaction of $19,299,000.00. Following the completion of the transaction, the chief executive officer directly owned 761,632 shares of the company’s stock, valued at approximately $48,995,786.56. The trade was a 28.26% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Kratos Defense & Security Solutions Stock Up 2.9%

NASDAQ:KTOS traded up $1.79 during midday trading on Friday, reaching $64.58. The company had a trading volume of 5,441,080 shares, compared to its average volume of 3,938,427. Kratos Defense & Security Solutions, Inc. has a 12-month low of $43.09 and a 12-month high of $134.00. The firm has a market capitalization of $12.12 billion, a price-to-earnings ratio of 379.88 and a beta of 1.08. The company has a current ratio of 5.54, a quick ratio of 4.99 and a debt-to-equity ratio of 0.04. The stock’s fifty day simple moving average is $52.48 and its 200-day simple moving average is $68.56.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last issued its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, topping the consensus estimate of $0.14 by $0.07. The company had revenue of $458.80 million for the quarter, compared to the consensus estimate of $410.36 million. Kratos Defense & Security Solutions had a return on equity of 3.07% and a net margin of 2.03%.Kratos Defense & Security Solutions’s revenue was up 30.5% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.11 EPS. On average, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.58 earnings per share for the current fiscal year.

Hedge Funds Weigh In On Kratos Defense & Security Solutions

Hedge funds have recently added to or reduced their stakes in the stock. Mcguire Capital Advisors Inc. acquired a new position in shares of Kratos Defense & Security Solutions in the 4th quarter valued at $25,000. Atlantic Union Bankshares Corp raised its stake 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 acquiring an additional 380 shares in the last quarter. Murphy & Mullick Capital Management Corp raised its stake in Kratos Defense & Security Solutions by 115.4% during the 4th quarter. Murphy & Mullick Capital Management Corp now owns 420 shares of the aerospace company’s stock worth $32,000 after acquiring an additional 225 shares in the last quarter. Vision Retirement LLC raised its stake 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 acquiring an additional 317 shares in the last quarter. Finally, Kemnay Advisory Services Inc. purchased a new stake in Kratos Defense & Security Solutions in the fourth quarter valued at $37,000. 75.92% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

Several research analysts have commented on KTOS shares. UBS Group reiterated a “neutral” rating and set a $82.00 price target on shares of Kratos Defense & Security Solutions in a report on Thursday, May 7th. Stifel Nicolaus reduced their price objective on shares of Kratos Defense & Security Solutions from $134.00 to $115.00 and set a “buy” rating on the stock in a report on Thursday, August 6th. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research report on Tuesday, July 28th. Weiss Ratings downgraded shares of Kratos Defense & Security Solutions from a “hold (c)” rating to a “sell (d+)” rating in a research note on Wednesday, August 5th. Finally, Royal Bank Of Canada dropped their target price on Kratos Defense & Security Solutions from $100.00 to $80.00 and set an “outperform” rating on the stock in a report on Thursday, May 7th. One analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions presently has an average rating of “Moderate Buy” and an average target price of $99.47.

Check Out Our Latest Report on Kratos Defense & Security Solutions

Key Kratos Defense & Security Solutions News

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

Positive Sentiment: Kratos is reported to have a potential $15 billion opportunity pipeline. Continued defense spending and new contract awards could expand its backlog, revenue, and long-term growth prospects. Can Kratos Defense’s $15B Opportunity Pipeline Sustain Growth Momentum?
Positive Sentiment: Reports from Kratos’s second-quarter earnings call highlighted accelerating demand across its hypersonics, jet-engine, and defense-support businesses. Management said investments in scalable, affordable manufacturing are positioning the company to pursue more Department of Defense contracts. 5 Revealing Analyst Questions From Kratos’s Q2 Earnings Call
Positive Sentiment: Kratos is participating in a broader rally in drone and defense stocks after new U.S. tariffs on imported drones and components. The policy could improve the competitive position of domestic defense-drone suppliers and increase interest in U.S.-based production. AeroVironment, Ondas, and Kratos Rising as Trump Levies Tariffs on Drone Imports
Positive Sentiment: Kratos recently exceeded quarterly expectations, reporting $458.8 million in revenue and $0.21 in earnings per share versus consensus estimates of $410.4 million and $0.14, respectively. Revenue increased 30.5% year over year, reinforcing the growth narrative.
Neutral Sentiment: Analysts are offering updated forecasts for Kratos’s fiscal 2026 earnings, which may influence expectations as investors assess how quickly the opportunity pipeline converts into funded contracts and profit.
Negative Sentiment: The bullish outlook carries execution risk. Kratos trades at a very high earnings multiple, while its reported net margin and return on equity remain modest; delays in contract awards or weaker-than-expected cash generation could make the valuation harder to justify.

About Kratos Defense & Security Solutions

(Get Free Report)

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.