Kratos Defense’s Director Sells $600,900 Stake, Analysts Set $87.94 Target
Director Scot Jarvis sold 5,000 shares of Kratos Defense & Security Solutions at an average price of $120.18 for $600,900, reducing his stake by 4.53% to 105,417 shares valued at $12.67 million. Twenty-two analysts rate the company a “Moderate Buy” with an average 12-month price target of $87.94.
1. Director Jarvis Sells 5,000 Shares
Kratos Defense & Security Solutions director Scot Jarvis completed the sale of 5,000 shares on January 15. The shares were sold at an average of $120.18, generating proceeds of $600,900. Following the sale, Jarvis holds 105,417 shares, representing a 4.53% reduction in his stake. The transaction was disclosed in an SEC filing and underscores insider trimming at a time of strong market interest in Kratos’s unmanned systems and hypersonics businesses.
2. Quarterly Earnings Beat Consensus
In its November quarter report, Kratos posted revenue of $347.6 million, topping analyst estimates by $24.6 million and marking 26.0% year-over-year growth. EPS came in at $0.14, $0.02 above consensus. Net margin was 1.56% and ROE reached 3.14%. Management highlighted robust contract awards in drone target systems and satellite communications as drivers of the revenue beat. Analysts now forecast full-year EPS of $0.31, up from prior estimates of $0.28.
3. Analyst Ratings Reflect Moderate Buy Consensus
Twenty-two brokerages currently cover Kratos, with sixteen assigning buy ratings, five holds and one strong buy. The average 12-month price target stands at $87.94. Notable recent actions include an upgraded outperform rating from Noble Financial and a target increase to $135 by Truist Financial. Canaccord Genuity raised its objective from $74 to $120 and reaffirmed buy, while Jefferies maintained hold status with an $85 target. The consensus ‘Moderate Buy’ reflects confidence in Kratos’s growth prospects in defense spending, unmanned systems and hypersonics.