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SAN DIEGO—Deanna H. Lund, Executive Vice President and Chief Financial Officer of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), recently sold 6,000 shares of the company’s common stock. The sale, executed on March 3, was conducted under a 10b5-1 trading plan, which Lund had amended in August 2023.
The shares were sold at a weighted average price of $26.4976, with individual transaction prices ranging from $26.055 to $26.77. Following this transaction, Lund retains ownership of 287,101 shares, which includes shares acquired through the company’s Employee Stock Purchase Plan and 401(k) Plan. InvestingPro analysis shows the company maintains strong financial health with a current ratio of 2.94 and more cash than debt on its balance sheet.
Kratos Defense, headquartered in San Diego, is a key player in the guided missiles and space vehicles sector. With a market capitalization of $4.25 billion, the company has demonstrated solid revenue growth of 9.6% over the last twelve months. For deeper insights into KTOS’s valuation and 12 additional ProTips, visit InvestingPro.
In other recent news, Kratos Defense & Security Solutions reported its fourth-quarter 2024 earnings, which revealed a slight revenue miss but an earnings per share (EPS) that exceeded expectations. The company posted an EPS of $0.13, surpassing the forecast of $0.10, while revenue was $283.1 million, slightly below the anticipated $287.58 million. In a strategic move, Kratos announced a joint venture with Rafael, an Israeli defense company, to produce rocket motors, aiming to tap into a $1 billion market opportunity. This collaboration is part of Kratos’s broader strategy to enhance its merchant portfolio, which already includes partnerships in drone jet engines and space systems. Benchmark analysts maintained a Buy rating on Kratos, citing the company’s shift towards a merchant provider role as a key factor in improving profit margins. The firm’s initial guidance for fiscal year 2026 is at the higher end of market expectations, despite a shortfall in the FY25 EBITDA forecast due to the timing of program wins. Kratos’s strong book-to-bill ratio of 1.5 times and its fixed-price contracts are expected to naturally lift margins, with potential annual increases of over 100 basis points. The company projects a 10% organic revenue growth for 2025, emphasizing its focus on hypersonic systems and tactical drones.
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