SAN DIEGO—Phillip D. Carrai, President of the STC Division at Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), sold 3,500 shares of the company's common stock on December 16, according to a recent SEC filing. The shares were sold at a weighted average price of $27.948, resulting in a total transaction value of $97,818. This transaction was executed under a pre-established 10b5-1 trading plan, which Carrai adopted on September 15, 2023.
Following this sale, Carrai directly owns 262,024 shares of Kratos Defense, with an additional 46,644 shares held indirectly by a trust. The shares sold were part of multiple transactions, with prices ranging from $27.445 to $28.46. The company, currently valued at $3.9 billion, maintains strong financial health with a current ratio of 3.22 and more cash than debt on its balance sheet, according to InvestingPro analysis, which offers comprehensive insider trading patterns and 12 additional key insights for this defense contractor.
In other recent news, Kratos Defense & Security Solutions has been awarded a $6.5 million contract by the Defense Advanced Research Projects Agency (DARPA) for hypersonic flight testing. This comes alongside Kratos' reported robust third quarter in 2024, with revenues reaching $275.9 million, marking an 8.7% organic growth in unmanned systems and surpassing estimates. Analysts from Jefferies maintained a Hold rating on the company's shares, increasing the price target from $25.00 to $30.00, reflecting a brighter outlook on the company's growth potential in the defense sector.
Kratos Defense also confirmed its financial guidance for the year, projecting a 10% year-over-year revenue growth for 2025. The company is expanding its manufacturing capabilities, planning to open new facilities in Israel and India in Q2 2025. The firm anticipates international opportunities for the Valkyrie drone and expects substantial opportunities in hypersonics that could reach $1 billion over five years.
Despite challenges in hiring skilled personnel and disruptions in the commercial satellite sector, Kratos remains confident in its growth potential, particularly in the international target drone market and driverless vehicle solutions. The firm is also pursuing large contracts, including a potential $1.5 billion award and another space opportunity valued over $100 million. These developments are part of Kratos' recent endeavors in the defense sector.
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