Marie Mendoza, Senior Vice President and General Counsel of Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), recently sold shares in the company, according to a filing with the Securities and Exchange Commission. On October 15, Mendoza sold 1,355 shares of Kratos common stock at an average price of $24.9575, with the sale totaling approximately $33,817.
This transaction was carried out under a 10b5-1 trading plan initially adopted in March 2021 and later amended in December 2023. Following this sale, Mendoza retains ownership of 58,085 shares, which includes shares acquired through the company's Employee Stock Purchase Plan and 401(k) Plan.
In other recent news, Kratos Defense & Security Solutions has secured a $45 million contract for a new satellite system. The company also reported Q2 revenues of $300.1 million, surpassing financial forecasts, and posted an adjusted EBITDA of $29.9 million. In addition, Kratos secured a $79.9 million contract from the U.S. Air Force for unmanned aerial target systems, potentially reaching a total value of $374 million if all options are exercised.
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 company confirming that it was not due to any internal disputes.
Kratos has also completed ground tests for a new turbofan engine in partnership with GE Aerospace and plans to expand its drone manufacturing capabilities. Shield AI demonstrated its Hivemind AI pilot's ability to autonomously control multiple Kratos MQM-178 Firejet aircraft, marking a significant advancement in autonomous aviation technology. These are the recent developments in Kratos' operations.
InvestingPro Insights
While Marie Mendoza's recent stock sale might raise eyebrows, it's essential to consider Kratos Defense & Security Solutions' broader financial picture. According to InvestingPro data, Kratos boasts a market capitalization of $3.81 billion, reflecting its significant presence in the defense sector. The company's revenue growth of 16.46% over the last twelve months as of Q2 2024 indicates robust business expansion, aligning with the increasing global focus on defense technology.
InvestingPro Tips highlight that Kratos holds more cash than debt on its balance sheet, suggesting financial stability. This strong liquidity position is further reinforced by the fact that the company's liquid assets exceed short-term obligations. These factors may provide reassurance to investors concerned about the insider sale.
However, it's worth noting that Kratos is trading at a high earnings multiple, with a P/E ratio of 352.08. This valuation metric, combined with the InvestingPro Tip indicating that the stock is trading near its 52-week high, suggests that investors are pricing in significant future growth expectations.
For readers interested in a more comprehensive analysis, InvestingPro offers 13 additional tips for Kratos, providing a deeper understanding of the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.