Eric Demarco, CEO of Kratos Defense & Security Solutions, Inc. (NASDAQ: KTOS), sold 8,301 shares of the company’s stock on January 5, 2024. The shares were sold at an average price of $90.00, resulting in a total transaction value of $747,090. Following this sale, Demarco still holds 878,816 shares, valued at approximately $79.09 million. This transaction marks a decrease of 0.94% in his overall position in the company.
The details of the sale were disclosed in a filing with the Securities and Exchange Commission (SEC). Investors often scrutinize insider sales, and this particular transaction comes amid a backdrop of fluctuating stock performance for the aerospace and defense firm.
Current Stock Performance and Financial Overview
Shares of Kratos opened at $91.44 on Thursday, reflecting recent market activity. The company reports a current ratio of 4.30, a quick ratio of 3.68, and a notably low debt-to-equity ratio of 0.04. Over the past twelve months, the stock has seen a low of $23.90 and a high of $112.57, with a market capitalization currently standing at $15.44 billion.
In its most recent quarterly earnings report, released on November 4, 2023, Kratos Defense posted earnings of $0.14 per share, surpassing the consensus estimate of $0.12. The firm reported $347.60 million in revenue for the quarter, exceeding analyst expectations of $323.01 million and showing a year-over-year revenue increase of 26.0%.
Analysts project that Kratos Defense will achieve earnings of $0.31 per share for the current year, indicating a positive outlook for the firm.
Institutional Activity and Analyst Ratings
Recent activity among institutional investors has seen several firms adjusting their holdings in Kratos. Notably, Bayforest Capital Ltd and Caitlin John LLC each purchased new stakes in the company, valued at approximately $32,000. Additionally, Whittier Trust Co. acquired a new stake valued at $38,000, while Accredited Wealth Management LLC increased its stake by 193.5% during the same quarter.
Approximately 75.92% of Kratos’ stock is currently held by institutional investors and hedge funds, reflecting strong institutional interest in the company.
In terms of analyst ratings, Kratos has garnered attention from several brokerages. Robert W. Baird raised their price target for the shares from $70.00 to $87.00 with an “outperform” rating. Additionally, JMP Securities increased their target from $70.00 to $105.00 while maintaining a “market outperform” rating. Overall, of the analysts covering Kratos, one has issued a “Strong Buy” rating, fourteen have rated it as a “Buy,” and six have classified it as a “Hold.”
As market analysts assess the potential impact of recent insider sales and changes in institutional ownership, the overall sentiment towards Kratos appears cautiously optimistic, supported by strong earnings and growth prospects within the national security and defense sectors.
