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

Kratos Defense & Security Solutions (KTOS) is down 3.6% today. Here is some analysis on what might have caused this price movement.

Analysis: The most likely explanation is that the move is not tied to a clearly negative company-specific announcement. Kratos actually disclosed a new contract on September 1, 2026, so today’s decline may reflect profit-taking, the market viewing that award as relatively modest versus the company’s larger growth outlook, and a broader risk-off tone in equities.

Details:

Kratos said it won a contract worth more than $20 million to provide mobile SATCOM gateways for a defense customer in Asia, which suggests the selloff was not driven by an obvious bad-news release.

In its August 4, 2026 second-quarter update, the company posted revenue of $458.8 million, 19.1% organic growth, and increased full-year 2026 revenue guidance to $1.75 billion to $1.81 billion.

That same quarterly update showed bookings of $492.2 million, a 1.1-to-1 book-to-bill ratio, and consolidated backlog of about $2.084 billion, reinforcing that the underlying demand picture remained solid recently.

This could also be because investors were de-risking smaller defense and technology names as stocks broadly faced pressure from higher yields, firmer oil prices, and geopolitical tension on September 2.

Sources:

Kratos Defense, SEC, AP News

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 121 times in the past 6 months. Of those trades, 0 have been purchases and 121 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 14 sales selling 77,000 shares for an estimated $4,419,053.
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.
SCOT B JARVIS has made 0 purchases and 4 sales selling 25,417 shares for an estimated $1,879,811.
JONAH ADELMAN (President, ME Division) sold 31,348 shares for an estimated $1,788,625
STACEY G ROCK (President, KTT Division) has made 0 purchases and 16 sales selling 22,741 shares for an estimated $1,580,564.
DEANNA H LUND (EVP & CFO) has made 0 purchases and 18 sales selling 25,000 shares for an estimated $1,484,326.
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.
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.

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$KTOS Hedge Fund Activity

We have seen 344 institutional investors add shares of $KTOS stock to their portfolio, and 459 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.