Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS) has reported a significant stock transaction by one of its top executives. Marie Mendoza, the company's Senior Vice President and General Counsel, sold 1,038 shares of common stock at a price of $17.21 per share. The total value of the transaction amounted to approximately $17,863.
This recent sale was conducted under a prearranged 10b5-1 trading plan, which was initially adopted on March 15, 2021, and later amended on December 4, 2023. Such plans allow company insiders to establish predetermined trading arrangements for selling stocks at a future date, providing a legal framework to avoid insider trading accusations.
Following the transaction, Mendoza's remaining holdings in Kratos Defense & Security Solutions include 68,192 shares. This figure includes 1,547 shares acquired through the company's Employee Stock Purchase Plan and around 14,099 shares held in the company's 401(k) Plan.
Kratos Defense & Security Solutions, headquartered in San Diego, California, specializes in guided missiles and space vehicles, as well as related parts. The company is incorporated in Delaware and has a fiscal year ending on December 31.
The sale by Mendoza was officially signed off by Eva Yee, Attorney-In-Fact, and was reported in a filing with the date of March 15, 2024. The disclosed transaction provides transparency to investors and the market regarding the financial activities of the company's executives.
InvestingPro Insights
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has been in the spotlight with the recent stock transaction by a top executive. To provide further context, here are key insights based on the latest data and analysis from InvestingPro:
InvestingPro data shows that KTOS has a market capitalization of approximately $2.59 billion, reflecting its position in the defense and security market. Despite a challenging period, with the stock price taking a notable hit over the last month, declining by 17.39%, the company's revenue growth remains strong. The last twelve months as of Q4 2023 report a revenue growth of 15.45%, indicating a solid performance in its core business areas.
While the stock has faced downward pressure recently, with a one-week price total return of -7.52%, Kratos's gross profit margin stands at a healthy 25.9%, suggesting that the company maintains a robust operational efficiency. Nonetheless, the P/E ratio is currently negative at -204.04, which can be a point of concern for investors looking for immediate profitability. However, the InvestingPro Tips indicate that net income is expected to grow this year, providing a potential upside for future valuation.
Investors considering Kratos should note that while the stock has fared poorly over the last month, it has a history of resilience, with a six-month price total return of 17.12%. Moreover, the company operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which may provide a cushion against market volatility.
For those interested in a deeper analysis, there are additional InvestingPro Tips available, including insights into the company's valuation multiples and profitability forecasts. As of now, there are 8 more tips listed on InvestingPro for Kratos Defense & Security Solutions. For detailed analytics and further tips, interested readers can visit https://www.investing.com/pro/KTOS and use the exclusive coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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