Steven S. Fendley, president of Kratos Defense & Security Solutions’ U.S. division, sold 7,000 ordinary shares on August 24 at $56.16 per share, totaling $393,120, according to a regulatory filing.
The transaction was executed under a Rule 10b5-1 trading plan adopted on May 12, 2025. Following the sale, Fendley retains direct ownership of 288,111 ordinary shares, including approximately 2,439 shares held through the company’s 401(k) plan.
Kratos reported second-quarter revenue of about $459 million, a 30% increase year-over-year, while adjusted earnings per share reached $0.21, surpassing the consensus estimate of $0.16. Adjusted EBITDA totaled $38.2 million, exceeding expectations by 10.7%. The company raised its full-year organic revenue growth guidance to a range of 19% to 23%, up from the prior forecast of 15% to 20%.
Analysts adjusted their price targets following the results. Stifel maintained a buy rating but reduced its target from $134 to $115, citing unfavorable currency pressures. Canaccord raised its target from $130 to $135 while keeping a buy rating, while Piper Sandler upgraded the stock to above average from neutral, citing improved short-term growth visibility. Citizens reiterated an outperform rating with a $105 price target.
Kratos highlighted a $15 billion proposal and bid pipeline, with key growth areas including hypersonics, engines, and unmanned systems. The company also noted an extensive investment program aimed at expanding future production capacity.
