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Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS), recently sold shares worth approximately $685,702, according to a recent SEC filing. The transactions occurred on March 3 and March 5, with shares sold at an average price range between $26.33 and $26.51 per share.
On March 3, Carrai sold 6,000 shares, followed by an additional sale of 20,000 shares on March 5. These sales were executed under a 10b5-1 trading plan that Carrai adopted in November 2024, designed to allow insiders to sell stock at predetermined times to avoid potential conflicts of interest. The company, now valued at $4.25 billion, maintains strong liquidity with a current ratio of 2.94 and holds more cash than debt on its balance sheet. For comprehensive insider trading analysis and 13 additional ProTips, visit InvestingPro.
Following these transactions, Carrai retains direct ownership of 263,283 shares of Kratos Defense. Additionally, he holds 46,644 shares indirectly through a trust. The sales were conducted in accordance with Kratos Defense’s trading policies, as noted in the filing. Analyst price targets for KTOS currently range from $22 to $40 per share, reflecting mixed sentiment about the company’s valuation at current levels.
In other recent news, Kratos Defense & Security Solutions reported its fourth-quarter 2024 earnings, with an earnings per share (EPS) of $0.13, surpassing the forecast of $0.10. However, the company’s revenue of $283.1 million fell short of the expected $287.58 million. Despite the revenue miss, Kratos maintains a strong book-to-bill ratio of 1.5 times. The company recently announced a joint venture with Israeli defense company Rafael to produce rocket motors, aiming to tap into a $1 billion market opportunity. This collaboration is part of Kratos’s strategy to expand its merchant portfolio, which includes partnerships for drone jet engines and space systems. Analysts at Benchmark have maintained a Buy rating on Kratos, highlighting the company’s transition to a merchant provider and its potential for organic growth and improved profit margins. The firm’s initial guidance for fiscal year 2026 is at the higher end of market expectations, with anticipated margin improvements. Kratos is projecting a 10% organic revenue growth for 2025, driven by advancements in hypersonic systems and tactical drones.
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