David M. Carter, President of the DRSS Division at Kratos Defense (NASDAQ:) & Security Solutions, Inc. (NASDAQ:KTOS), recently sold 4,000 shares of the company’s common stock. The sale, executed on November 1, 2024, was conducted under a 10b5-1 trading plan Carter adopted earlier this year. The shares were sold at a weighted average price of $22.9546, amounting to a total transaction value of $91,818. Following this transaction, Carter retains ownership of 111,149 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 reported Q2 revenues of $300.1 million and an adjusted EBITDA of $29.9 million. The company also secured significant contracts, including a $45 million contract for a new satellite system and 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. However, Kratos also announced the immediate resignation of board member Daniel Hagen, with reasons for his departure remaining unspecified.
On the analyst front, B.Riley downgraded Kratos stock from Buy to Neutral, despite increasing the price target from $24 to $26, citing limited near-term upside potential. In contrast, Truist Securities and Baird upgraded their price targets for Kratos to $27 and $35 respectively, while BTIG maintained a neutral rating, focusing on the potential financial impact of Kratos’ involvement in the Collaborative Combat Aircraft tactical drone program.
Kratos has also made strides in technological advancements, completing ground tests for a new turbofan engine in partnership with GE Aerospace and planning 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 recent developments in Kratos Defense & Security Solutions’ operations.
InvestingPro Insights
While David M. Carter’s (NYSE:) recent sale of 4,000 shares might raise questions, it’s important to consider Kratos Defense & Security Solutions’ broader financial picture. According to InvestingPro data, Kratos boasts a market capitalization of $3.46 billion, reflecting its significant presence in the defense sector. The company’s revenue growth is noteworthy, with a 16.46% increase over the last twelve months as of Q2 2024, reaching $1.13 billion. This growth trend aligns with an InvestingPro Tip indicating that net income is expected to grow this year.
Despite the positive revenue trajectory, investors should note that Kratos is trading at a high earnings multiple, with a P/E ratio of 319.03. This valuation suggests the market has high expectations for future growth. Another InvestingPro Tip highlights that Kratos holds more cash than debt on its balance sheet, which could provide financial flexibility for future operations or investments.
For those seeking a deeper understanding of Kratos’ financial health and market position, InvestingPro offers 11 additional tips, providing a more comprehensive analysis for informed investment decisions.
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