Marie Mendoza, the Senior Vice President & General Counsel of Kratos Defense (NASDAQ:KTOS) & Security Solutions, Inc. (NASDAQ:KTOS), recently sold 1,500 shares of company stock, according to the latest SEC filings. The shares were sold at an average price of $18.1805, totaling approximately $27,270.
The transaction occurred on April 15, 2024, and was part of a pre-arranged 10b5-1 trading plan, which Mendoza had adopted back on March 15, 2021, and subsequently amended on December 4, 2023. A 10b5-1 trading plan allows company insiders to set up a predetermined schedule for buying and selling stocks at a time when they are not in possession of non-public information, providing a defense against accusations of insider trading.
The sales were executed in multiple transactions with prices ranging from $18.07 to $18.38. Following the sale, Mendoza still owns a substantial number of shares in Kratos Defense, which includes 1,547 shares purchased through the company's Employee Stock Purchase Plan and approximately 14,437 shares held through the company's 401(k) Plan, bringing her total holdings to 67,030 shares post-transaction.
Kratos Defense & Security Solutions, Inc., headquartered in San Diego, California, specializes in the manufacturing of guided missiles and space vehicles and parts. The company has a long history in the defense sector, previously known as Wireless Facilities Inc. before changing its name.
Investors and stakeholders typically monitor insider transactions as they can provide insights into an executive's confidence in the company's future performance. However, sales under 10b5-1 plans are generally viewed as less indicative of an insider's sentiment towards the company, given their pre-planned nature.
InvestingPro Insights
Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) has been a key player in the defense sector, with a focus on innovative technologies in guided missiles and space vehicles. The recent insider transaction involving Marie Mendoza, the company's Senior Vice President & General Counsel, has shed light on the stock's activity and potential outlook.
As of the last twelve months ending Q1 2023, Kratos has reported a revenue growth of 15.45%, indicating a solid expansion in its financial performance. This aligns with the InvestingPro Tips that suggest net income is expected to grow this year. The company's ability to grow its revenue is a positive sign for investors looking for companies with upward trajectories.
The InvestingPro Tips also highlight that Kratos operates with a moderate level of debt and has liquid assets that exceed its short-term obligations, which could give investors confidence in the company's financial health and its ability to meet its immediate financial commitments. Despite not being profitable over the last twelve months, analysts predict Kratos will turn a profit this year, which may be a turning point for the company's financial outlook.
From the InvestingPro Data, Kratos Defense & Security Solutions has a market capitalization of $2.66 billion. However, the company is trading at a high EBITDA valuation multiple, which investors might want to consider when evaluating the stock's price relative to its earnings before interest, taxes, depreciation, and amortization. Moreover, the stock is currently trading at 81.62% of its 52-week high, with a previous close price of $17.63. These figures can be crucial for investors aiming to time their entry or adjust their portfolio based on the company's market performance.
For those interested in a deeper analysis, there are more InvestingPro Tips available on the Kratos Defense & Security Solutions page on InvestingPro, which could offer additional insights into the company's performance and valuation. To access these tips and more detailed metrics, use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription.
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