Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) Short Interest Update

Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) saw a large decline in short interest in 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 daily volume of 4,179,693 shares, the days-to-cover ratio is currently 1.7 days. Currently, 4.3% of the company’s stock are short sold. Currently, 4.3% of the company’s stock are short sold. Based on an average daily volume of 4,179,693 shares, the days-to-cover ratio is currently 1.7 days.

Key Stories 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

Insider Buying and Selling

In other news, insider Steven S. Fendley sold 7,000 shares of Kratos Defense & Security Solutions stock in a transaction on Monday, January 26th. The stock was sold at an average price of $107.97, for a total transaction of $755,790.00. Following the transaction, the insider owned 341,631 shares in the company, valued at approximately $36,885,899.07. The trade was a 2.01% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CFO Deanna H. Lund sold 5,000 shares of the company’s stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $96.87, for a total value of $484,350.00. Following the completion of the transaction, the chief financial officer owned 274,983 shares in the company, valued at $26,637,603.21. This represents a 1.79% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last three months, insiders have sold 921,815 shares of company stock valued at $75,465,021. 2.37% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Kratos Defense & Security Solutions

Institutional investors and hedge funds have recently made changes to their positions in the company. Royal Bank of Canada grew its position in Kratos Defense & Security Solutions by 22.6% during the 1st quarter. Royal Bank of Canada now owns 190,481 shares of the aerospace company’s stock worth $5,655,000 after acquiring an additional 35,098 shares during the last quarter. Amundi bought a new stake in shares of Kratos Defense & Security Solutions during the first quarter worth $791,000. NewEdge Advisors LLC increased its stake in shares of Kratos Defense & Security Solutions by 64.4% in the first quarter. NewEdge Advisors LLC now owns 1,315 shares of the aerospace company’s stock valued at $39,000 after buying an additional 515 shares in the last quarter. Jones Financial Companies Lllp raised its holdings in shares of Kratos Defense & Security Solutions by 178.0% in the first quarter. Jones Financial Companies Lllp now owns 3,570 shares of the aerospace company’s stock valued at $108,000 after buying an additional 2,286 shares during the last quarter. Finally, UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its holdings in shares of Kratos Defense & Security Solutions by 11.7% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 393,614 shares of the aerospace company’s stock valued at $11,686,000 after buying an additional 41,265 shares during the last quarter. Institutional investors and hedge funds own 75.92% of the company’s stock.

Kratos Defense & Security Solutions Price Performance

NASDAQ KTOS traded up $2.01 during trading on Friday, reaching $89.06. 1,764,829 shares of the company traded hands, compared to its average volume of 3,608,455. Kratos Defense & Security Solutions has a 1-year low of $23.90 and a 1-year 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. The stock’s 50 day moving average price is $94.49 and its two-hundred day moving average price is $82.91. The company has a debt-to-equity ratio of 0.04, a quick ratio of 3.68 and a current ratio of 4.30.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on the stock. Citigroup restated a “market outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Monday, January 12th. Citizens Jmp upped their price target on shares of Kratos Defense & Security Solutions from $105.00 to $125.00 and gave the company a “market outperform” rating in a report on Monday, January 12th. Noble Financial reiterated an “outperform” rating on shares of Kratos Defense & Security Solutions in a research note on Tuesday, January 20th. Weiss Ratings reissued a “hold (c)” rating on shares of Kratos Defense & Security Solutions in a research report on Thursday, January 22nd. Finally, The Goldman Sachs Group raised their target price on Kratos Defense & Security Solutions from $93.00 to $125.00 and gave the company a “buy” rating in a report on Tuesday, January 20th. One research analyst has rated the stock with a Strong Buy rating, sixteen have given a Buy rating and five have assigned a Hold rating to the stock. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $95.28.

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.