SAN DIEGO – Deanna H. Lund, the Executive Vice President and Chief Financial Officer of Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), has sold shares of the company's common stock. The transaction, dated June 3, 2024, involved the sale of 6,000 shares at a price of $21.91 per share, totaling approximately $131,460.
The sale was conducted under a prearranged 10b5-1 trading plan, which allows company insiders to establish a predetermined plan to sell company stocks. Lund's plan was adopted on September 12, 2019, and later amended on August 18, 2023. This type of plan is designed to prevent any accusations of insider trading by allowing the automatic execution of transactions at set times or prices.
Following the transaction, Lund still has a substantial stake in the company, with 303,909 shares of Kratos Defense & Security Solutions, Inc. This includes 16,626 shares purchased through the company's Employee Stock Purchase Plan and approximately 20,230 shares held through the company's 401(k) Plan.
Kratos Defense & Security Solutions, Inc. is a specialized National Security technology business providing mission critical products, services, and solutions for United States National Security priorities. The company's shares are traded on the NASDAQ stock exchange under the ticker symbol KTOS.
The sale was officially signed off by Deanna H. Lund, through her attorney-in-fact Eva Yee, on June 5, 2024. The details of the transaction are disclosed as per the regulatory requirements set by the Securities and Exchange Commission.
In other recent news, Kratos Defense & Security Solutions has been making waves in the investment community. The company reported robust first-quarter results for 2024, with revenues and profits surpassing estimates across all business units. This includes the unmanned systems segment, which experienced a remarkable 21.8% organic growth and contributed to a $1.2 billion backlog. Kratos is also optimistic about securing new contracts and expanding its manufacturing capabilities.
RBC Capital has increased its price target for Kratos shares to $24.00, up from the previous $23.00, maintaining an Outperform rating. This adjustment follows a meeting with Kratos' CEO and CFO, who expressed confidence in the company's growth potential for 2024, particularly within the air defense business. RBC Capital also noted Kratos' revised expectations for its tactical drone business as a positive development.
In addition, JMP Securities has initiated coverage of Kratos with a Market Outperform rating and a price target of $27.00. This bullish outlook is based on Kratos' diverse offerings, which include unmanned systems, space and satellite communications, microwave electronics, and cybersecurity solutions. These recent developments reflect a favorable outlook for Kratos Defense & Security Solutions in the investment community.
InvestingPro Insights
In light of the recent stock sale by Kratos Defense & Security Solutions' CFO, Deanna H. Lund, investors and stakeholders may be interested in key financial metrics and analyst insights from InvestingPro. As of the last twelve months as of Q1 2024, Kratos holds a market capitalization of approximately $3.2 billion. Despite the company not being profitable over the last twelve months, with a negative P/E ratio of -3847.07, it has experienced a robust revenue growth of 15.91%, signaling potential for future profitability.
InvestingPro Tips suggest that Kratos has a strong liquidity position, holding more cash than debt on its balance sheet and with liquid assets exceeding short-term obligations. Additionally, the company has seen a high return over the last year, with a 56.5% price total return, which could be indicative of investor confidence in its growth trajectory.
For those considering a deeper dive into Kratos Defense & Security Solutions, InvestingPro offers further insights, including 11 additional tips on the company's financial health and future prospects. These tips range from net income expectations to analyst earnings revisions and valuation multiples. For a comprehensive analysis, visit https://www.investing.com/pro/KTOS and remember to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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