On October 30, 2023, President of the US Division, Steven Fendley, sold 7,000 shares of Kratos Defense & Security Solutions Inc (KTOS, Financial). This move is part of a series of transactions made by the insider over the past year, which have seen a total of 67,000 shares sold and no shares purchased.
Steven Fendley is a key figure at Kratos Defense & Security Solutions Inc, a leading technology, intellectual property, and proprietary product and solution company focused on the United States and its allies' national security. The company specializes in unmanned systems, satellite communications, cyber security/warfare, microwave electronics, missile defense, hypersonic systems, training, combat systems, and next-generation turbojet and turbofan engine development.
The insider's recent sell-off is part of a broader trend within the company. Over the past year, there have been 26 insider sells and no insider buys. This trend is illustrated in the following image:
On the day of the insider's recent sell, shares of Kratos Defense & Security Solutions Inc were trading at $16.89, giving the stock a market cap of $2.22 billion. Despite the insider's sell-off, the stock appears to be modestly undervalued based on its GuruFocus Value of $22.46, as shown in the following image:
The GuruFocus Value is an intrinsic value estimate that takes into account historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at, a GuruFocus adjustment factor based on the company’s past returns and growth, and future estimates of business performance from Morningstar analysts. With a price-to-GF-Value ratio of 0.75, the stock appears to be modestly undervalued.
The insider's sell-off, coupled with the broader trend of insider sells at Kratos Defense & Security Solutions Inc, may raise some eyebrows among investors. However, the stock's modest undervaluation suggests that there may still be potential for growth. As always, investors should conduct their own due diligence and consider multiple factors before making investment decisions.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
