Why Kratos Defense & Security Solutions (KTOS) Stock Is Down Today

Kratos Defense & Security Solutions (KTOS) is down 7.5% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely explanation is a sharp pullback after a recent earnings-driven rally, rather than a clear new negative company-specific development. Kratos’ latest reported results and guidance were strong, and recent contract-related updates were constructive, so today’s decline could be because investors are taking profits and rotating out of higher-valuation defense and drone names.

Details:

Kratos reported second-quarter 2026 results in early August with revenue growth, improved adjusted earnings, and higher full-year revenue guidance.

The company’s recent filings and investor materials highlighted a large backlog and an expanding opportunity pipeline into 2027, which does not point to an obvious fundamental setback today.

Recent company announcements included defense and space-related awards, and a newly disclosed propulsion program with GE Aerospace received a U.S. military designation and development contract.

With no widely visible negative filing or earnings update tied to August 20, the sell-off appears more consistent with volatility and profit-taking after a fast move in the shares.

Sources:

Kratos Defense & Security Solutions, SEC, Axios

Disclaimer: This price movement analysis was generated with the help of AI. Please double-check the information provided for mistakes.

$KTOS Insider Trading Activity

$KTOS insiders have traded $KTOS stock on the open market 143 times in the past 6 months. Of those trades, 0 have been purchases and 143 have been sales.

Here’s a breakdown of recent trading of $KTOS stock by insiders over the last 6 months:

ERIC M DEMARCO (President & CEO) has made 0 purchases and 4 sales selling 300,000 shares for an estimated $19,300,304.
STEVEN S. FENDLEY (President, US Division) has made 0 purchases and 15 sales selling 77,000 shares for an estimated $4,673,909.
PHILLIP D CARRAI (President, STC Division) has made 0 purchases and 22 sales selling 59,000 shares for an estimated $3,783,991.
WILLIAM A HOGLUND has made 0 purchases and 3 sales selling 30,500 shares for an estimated $2,171,296.
STACEY G ROCK (President, KTT Division) has made 0 purchases and 21 sales selling 26,741 shares for an estimated $1,941,668.
DEANNA H LUND (EVP & CFO) has made 0 purchases and 26 sales selling 30,000 shares for an estimated $1,940,721.
JONAH ADELMAN (President, ME Division) sold 31,348 shares for an estimated $1,788,625
SCOT B JARVIS has made 0 purchases and 4 sales selling 20,417 shares for an estimated $1,684,869.
SCOTT I ANDERSON has made 0 purchases and 5 sales selling 15,000 shares for an estimated $1,336,714.
DAVID M CARTER (President, DRSS Division) has made 0 purchases and 17 sales selling 16,000 shares for an estimated $1,063,464.
DE BURGREEN MARIA CERVANTES (VP & Corp. Controller) has made 0 purchases and 4 sales selling 6,270 shares for an estimated $559,844.
MARIE MENDOZA (SVP & General Counsel) has made 0 purchases and 11 sales selling 8,055 shares for an estimated $539,347.
THOMAS E IV MILLS (President, C5ISR Division) has made 0 purchases and 8 sales selling 5,758 shares for an estimated $525,454.
BRADLEY L BOYD sold 3,000 shares for an estimated $156,240
BOBBI DOORENBOS sold 2,500 shares for an estimated $143,225

To track insider transactions, check out Quiver Quantitative's insider trading dashboard. You can access data on insider stock transactions through the Quiver Quantitative API insider transaction endpoint.

$KTOS Hedge Fund Activity

We have seen 342 institutional investors add shares of $KTOS stock to their portfolio, and 457 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

BLACKROCK, INC. removed 7,627,817 shares (-24.1%) from their portfolio in Q2 2026, for an estimated $380,322,955
FIRST TRUST ADVISORS LP added 3,314,308 shares (+122.7%) to their portfolio in Q2 2026, for an estimated $165,251,396
FRANKLIN RESOURCES INC removed 3,210,459 shares (-80.7%) from their portfolio in Q2 2026, for an estimated $160,073,485
JERICHO CAPITAL ASSET MANAGEMENT L.P. removed 2,649,578 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $132,107,959
PRICE T ROWE ASSOCIATES INC /MD/ removed 1,772,367 shares (-83.0%) from their portfolio in Q2 2026, for an estimated $88,370,218
WESTFIELD CAPITAL MANAGEMENT CO LP removed 1,563,146 shares (-100.0%) from their portfolio in Q2 2026, for an estimated $77,938,459
GEODE CAPITAL MANAGEMENT, LLC removed 1,552,655 shares (-29.5%) from their portfolio in Q2 2026, for an estimated $77,415,378

To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard. You can access data on hedge funds moves and 13F filings through the Quiver Quantitative API 13F endpoint.

$KTOS Price Targets

Multiple analysts have issued price targets for $KTOS recently. We have seen 9 analysts offer price targets for $KTOS in the last 6 months, with a median target of $85.0.

Here are some recent targets:

Sheila Kahyaoglu from Jefferies set a target price of $80.0 on 07/08/2026
Sam Brandeis from Wedbush set a target price of $85.0 on 07/01/2026
Seth Seifman from JP Morgan set a target price of $82.0 on 06/12/2026
Trevor Walsh from Citizens set a target price of $105.0 on 05/08/2026
Clarke Jeffries from Piper Sandler set a target price of $75.0 on 05/07/2026
Andre Madrid from BTIG set a target price of $100.0 on 05/07/2026
Matt Akers from BNP Paribas set a target price of $85.0 on 05/07/2026

This article is not financial advice. See Quiver Quantitative's disclaimers for more information. Note that there may be inaccuracies due to mistakes in ticker-mapping, and other anomalies.