Kratos defense CFO Deanna Lund sells $137,777 in stock

SAN DIEGO—Deanna H. Lund, Executive Vice President and Chief Financial Officer of Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), recently sold 6,000 shares of the company's common stock. The transaction, executed on November 1, 2024, was completed at an average price of $22.9629 per share, amounting to a total sale value of approximately $137,777.

This stock sale was conducted under a pre-established 10b5-1 trading plan, which Lund adopted in September 2019 and amended in August 2023. Following this transaction, Lund holds 273,881 shares directly. Her holdings include 16,626 shares acquired through the company's Employee Stock Purchase Plan and around 20,202 shares in the company's 401(k) Plan.

Kratos Defense & Security Solutions, based in San Diego, specializes in providing advanced technology solutions for national security and defense.

In other recent news, Kratos Defense & Security Solutions reported Q2 revenues of $300.1 million and an adjusted EBITDA of $29.9 million. The company also secured a $79.9 million contract from the U.S. Air Force for unmanned aerial target systems, which could potentially reach a total value of $374 million if all options are exercised. In addition, Kratos secured a $45 million contract for a new satellite system. Despite these achievements, B.Riley downgraded Kratos stock from Buy to Neutral, citing the stock's limited near-term upside potential. However, the firm expressed long-term optimism, highlighting the company's substantial $12 billion bid and proposal pipeline.

On the analyst front, Truist Securities and Baird upgraded their price targets for Kratos to $27 and $35 respectively, while BTIG maintained a neutral rating. Kratos also announced the immediate resignation of board member Daniel Hagen, with the reasons behind his departure remaining unspecified.

In terms of technological advancements, Kratos completed ground tests for a new turbofan engine in partnership with GE Aerospace and plans to expand its drone manufacturing capabilities. Furthermore, Shield AI demonstrated its Hivemind AI pilot's ability to autonomously control multiple Kratos MQM-178 Firejet aircraft. These are the recent developments at Kratos Defense & Security Solutions.

InvestingPro Insights

Kratos Defense & Security Solutions (NASDAQ:KTOS) presents an intriguing financial picture that adds context to the recent insider sale by CFO Deanna H. Lund. According to InvestingPro data, the company's market capitalization stands at $3.46 billion, reflecting its significant presence in the defense technology sector.

Despite the recent stock sale by the CFO, there are positive indicators for Kratos. An InvestingPro Tip highlights that the company's net income is expected to grow this year, which could be a sign of improving financial health. This growth expectation aligns with the company's revenue growth of 16.46% over the last twelve months, reaching $1.13 billion.

However, investors should note that Kratos is trading at a high earnings multiple, with a P/E ratio of 319.03. This valuation suggests that the market has high growth expectations for the company, which may explain the recent insider sale as executives potentially capitalize on the elevated stock price.

It's worth mentioning that Kratos holds more cash than debt on its balance sheet, according to another InvestingPro Tip. This strong liquidity position could provide the company with financial flexibility to invest in growth opportunities or weather potential market uncertainties.

For readers interested in a more comprehensive analysis, InvestingPro offers additional tips and insights. In fact, there are 8 more InvestingPro Tips available for Kratos Defense & Security Solutions, providing a deeper dive into the company's financial health and market position.

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