Kratos Defense & Security Solutions (NASDAQ:KTOS) Shares Down 3% – Time to Sell?

Posted by George Bondi on Sep 25th, 2026

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS – Get Free Report) traded down 3% on Friday. The company traded as low as $45.31 and last traded at $45.62. Approximately 3,172,027 shares changed hands during mid-day trading, a decline of 27% from the average daily volume of 4,324,791 shares. The stock had previously closed at $47.02.

More Kratos Defense & Security Solutions News

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

Positive Sentiment: Kratos remains positioned in the expanding unmanned-systems market, alongside Draganfly, although the companies have different growth strategies. Continued demand for drones and related defense technologies supports the long-term investment case for KTOS. Kratos Defense vs. Draganfly: Which Drone Stock Has More Potential?
Neutral Sentiment: A Buffalo Mid Cap Discovery Fund investor letter cited moderation in the defense sector as a factor weighing on Kratos. The report reflects broader sector sentiment rather than a new contract, earnings revision, or change in company fundamentals. Defense Sector Moderation Weighs on Kratos Defense & Security Solutions
Neutral Sentiment: Reports showed no reported short interest as of September 24, implying that short sellers were not a significant measurable source of pressure. However, the unusual zero-share figure may reflect a data or reporting issue, limiting its usefulness as a trading signal.
Negative Sentiment: CFO Deanna Lund sold 7,000 shares for approximately $341,460, reducing her holdings by 2.5%. The transaction was made under a pre-arranged Rule 10b5-1 plan, which weakens its significance as a fundamental warning, but insider selling can still weigh on investor sentiment. SEC insider transaction filing

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on KTOS shares. Canaccord Genuity Group raised their price objective on Kratos Defense & Security Solutions from $130.00 to $135.00 and gave the stock a “buy” rating in a research note on Wednesday, August 5th. Wedbush started coverage on Kratos Defense & Security Solutions in a research report on Tuesday, June 30th. They set an “outperform” rating and a $85.00 target price for the company. Stifel Nicolaus reduced their target price on 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. Jefferies Financial Group set a $105.00 price target on Kratos Defense & Security Solutions in a research report on Wednesday, August 5th. Finally, Guggenheim initiated coverage on Kratos Defense & Security Solutions in a research note on Monday, September 14th. They issued a “buy” rating and a $74.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Kratos Defense & Security Solutions has a consensus rating of “Moderate Buy” and a consensus target price of $98.06.

Read Our Latest Analysis on Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Stock Down 3.0%

The company has a quick ratio of 4.99, a current ratio of 5.54 and a debt-to-equity ratio of 0.04. The firm has a 50 day moving average of $51.64 and a two-hundred day moving average of $59.31. The firm has a market capitalization of $8.56 billion, a price-to-earnings ratio of 268.35 and a beta of 1.11.

Kratos Defense & Security Solutions (NASDAQ:KTOS – Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $0.21 earnings per share for the quarter, beating analysts’ consensus estimates 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 net margin of 2.03% and a return on equity of 3.07%. The firm’s quarterly revenue was up 30.5% compared to the same quarter last year. During the same period last year, the company posted $0.11 EPS. As a group, sell-side analysts anticipate that Kratos Defense & Security Solutions, Inc. will post 0.57 EPS for the current fiscal year.

Insider Activity at Kratos Defense & Security Solutions

In other Kratos Defense & Security Solutions news, Director Scot Jarvis sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $63.50, for a total value of $635,000.00. Following the completion of the transaction, the director directly owned 65,123 shares in the company, valued at approximately $4,135,310.50. This represents a 13.31% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Steven S. Fendley sold 7,000 shares of the stock in a transaction dated Monday, August 24th. The shares were sold at an average price of $56.16, for a total value of $393,120.00. Following the completion of the sale, the insider directly owned 288,111 shares of the company’s stock, valued at approximately $16,180,313.76. The trade was a 2.37% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 396,188 shares of company stock valued at $24,636,142. Corporate insiders own 1.50% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of KTOS. Geode Capital Management LLC boosted 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 purchasing an additional 148,622 shares in the last quarter. Clearbridge Investments LLC lifted its holdings in shares of Kratos Defense & Security Solutions by 48.5% in the 4th quarter. Clearbridge Investments LLC now owns 1,458,084 shares of the aerospace company’s stock worth $110,683,000 after purchasing an additional 476,049 shares in the last quarter. Bank of New York Mellon Corp grew its position in Kratos Defense & Security Solutions by 12.2% in the 1st quarter. Bank of New York Mellon Corp now owns 1,515,997 shares of the aerospace company’s stock valued at $106,893,000 after purchasing an additional 164,607 shares during the period. Goldman Sachs Group Inc. increased its stake in Kratos Defense & Security Solutions by 66.0% during the 4th quarter. Goldman Sachs Group Inc. now owns 1,398,525 shares of the aerospace company’s stock valued at $106,162,000 after purchasing an additional 556,036 shares in the last quarter. Finally, Norges Bank bought a new position in shares of Kratos Defense & Security Solutions in the fourth quarter valued at $104,807,000. 75.92% of the stock is owned by institutional investors.

Kratos Defense & Security Solutions Company Profile

(Get Free Report)

Kratos Defense & Security Solutions, Inc is a technology company that develops products and systems for national security, defense and commercial applications. The company primarily serves the U.S. Department of Defense and other government agencies, while also supporting allied governments and selected commercial customers.

Its offerings include unmanned aerial and ground systems, target drones, tactical drones, satellite communications systems, space-related products, missile defense technology, hypersonic and high-speed systems, radar and command-and-control solutions, and microwave electronics.