Short Interest in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Declines By 21.9%

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) saw a significant decline in short interest during the month of January. As of January 30th, there was short interest totaling 7,018,702 shares, a decline of 21.9% from the January 15th total of 8,985,095 shares. Based on an average trading volume of 4,179,693 shares, the short-interest ratio is currently 1.7 days. Currently, 4.3% of the shares of the stock are sold short. Currently, 4.3% of the shares of the stock are sold short. Based on an average trading volume of 4,179,693 shares, the short-interest ratio is currently 1.7 days.

Analysts Set New Price Targets

Several brokerages have recently issued reports on KTOS. Citigroup reaffirmed a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Monday, January 12th. Citizens Jmp raised their price objective on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a research note on Monday, January 12th. Truist Financial set a $135.00 target price on shares of Kratos Defense & Security Solutions in a report on Friday, January 9th. Stifel Nicolaus raised their price target on Kratos Defense & Security Solutions from $112.00 to $134.00 and gave the stock a “buy” rating in a research report on Tuesday, January 13th. Finally, Noble Financial reiterated an “outperform” rating on shares of Kratos Defense & Security Solutions in a report on Tuesday, January 20th. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating and five have issued a Hold rating to the company’s stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $95.28.

Insider Activity at Kratos Defense & Security Solutions

In other news, insider Jonah Adelman sold 30,000 shares of the company’s stock in a transaction on Tuesday, November 25th. The stock was sold at an average price of $74.80, for a total transaction of $2,244,000.00. Following the transaction, the insider owned 9,348 shares of the company’s stock, valued at $699,230.40. This represents a 76.24% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Eric M. Demarco sold 200,000 shares of the firm’s stock in a transaction dated Monday, December 1st. The shares were sold at an average price of $74.09, for a total value of $14,818,000.00. Following the completion of the transaction, the chief executive officer owned 1,196,237 shares in the company, valued at approximately $88,629,199.33. This represents a 14.32% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 921,815 shares of company stock valued at $75,465,021 in the last three months. 2.37% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

A number of hedge funds and other institutional investors have recently made changes to their positions in KTOS. Atlantic Union Bankshares Corp boosted its stake in shares of Kratos Defense & Security Solutions by 7,600.0% during the 4th quarter. Atlantic Union Bankshares Corp now owns 385 shares of the aerospace company’s stock worth $29,000 after buying an additional 380 shares during the last quarter. TD Waterhouse Canada Inc. bought a new stake in Kratos Defense & Security Solutions during the second quarter worth about $30,000. Rakuten Securities Inc. acquired a new position in Kratos Defense & Security Solutions during the second quarter valued at approximately $31,000. Bayforest Capital Ltd bought a new position in Kratos Defense & Security Solutions in the third quarter valued at approximately $32,000. Finally, Caitlin John LLC acquired a new position in shares of Kratos Defense & Security Solutions during the 3rd quarter worth approximately $32,000. 75.92% of the stock is currently owned by institutional investors and hedge funds.

Kratos Defense & Security Solutions Stock Up 2.3%

Shares of NASDAQ:KTOS traded up $2.01 during trading on Friday, hitting $89.06. 1,764,829 shares of the company’s stock traded hands, compared to its average volume of 3,608,455. The company has a current ratio of 4.30, a quick ratio of 3.68 and a debt-to-equity ratio of 0.04. The company has a 50-day moving average price of $94.49 and a 200-day moving average price of $82.91. Kratos Defense & Security Solutions has a 52 week low of $23.90 and a 52 week high of $134.00. The company has a market cap of $15.04 billion, a price-to-earnings ratio of 685.13 and a beta of 1.09.

Key Headlines Impacting Kratos Defense & Security Solutions

Here are the key news stories impacting Kratos Defense & Security Solutions this week:

• Positive Sentiment: Seeking Alpha initiated coverage with a bullish thesis highlighting Kratos’ role in U.S. defense industrial rebuilding and growth areas like unmanned systems and attrition‑driven defense spending — a narrative that can support higher valuation and investor interest. Kratos Defense: A $134 Story In The Age Of Attrition
• Positive Sentiment: Kratos expanded a commercial application — a partnership with Champion Tire & Wheel to extend automated truck platooning for the NASCAR 2026 season — showing revenue diversification and commercial validation of its autonomy technologies. Kratos and Champion Tire & Wheel Expand Automated Truck Platooning for NASCAR 2026 Season
• Positive Sentiment: Recent Wall Street support and institutional flows appear constructive: multiple buy/overweight analyst ratings and elevated price targets (median ~$125) plus reported institutional adds (e.g., BlackRock increasing shares) bolster investor confidence. Earnings release / Quiver summary (includes analyst & institutional notes)
• Neutral Sentiment: Kratos scheduled its Q4 and FY2025 earnings release and conference call for Feb. 23 (post‑market) — a near‑term catalyst that can drive volatility either way depending on results and guidance. Earnings Conference Call Announcement
• Neutral Sentiment: Analysis pieces are debating market support for KTOS (mixed takeaways); these narratives can amplify moves but don’t change fundamentals immediately. Is Kratos Defense & Security Solutions Inc Gaining or Losing Market Support?
• Neutral Sentiment: Recent short‑interest reports in feeds show anomalous/zero and NaN values — data appears inconsistent and likely unreliable; unclear near‑term impact until corrected reporting.
• Negative Sentiment: Significant insider selling activity has been reported (many executives selling shares, no purchases shown), which can create perception of selling pressure or governance concerns for some investors. Quiver report with insider trading details

About Kratos Defense & Security Solutions

Kratos Defense & Security Solutions, Inc (NASDAQ: KTOS) is a technology-driven company that specializes in national security and defense solutions for government and military customers. The firm’s core capabilities span unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons. Through its integrated approach, Kratos delivers mission-critical products and services designed to enhance operational readiness and support force modernization initiatives.

In the unmanned systems arena, Kratos develops high-performance aerial platforms used as target drones, low-cost attritable aircraft and experimental stealth demonstrators.