Deanna H. Lund, who serves as executive vice president and chief financial officer at Kratos Defense & Security Solutions (NASDAQ:KTOS), disposed of 4,990 shares of the company's common stock on February 2, 2026. The aggregate proceeds from the sale were approximately $484,362, with the transactions executed at weighted average prices between $95.6279 and $100.6195.
The sale was carried out pursuant to a pre-arranged 10b5-1 trading plan that Lund adopted on May 20, 2025. Following the completion of these transactions, Lund's direct holdings in Kratos total 274,983 shares. That total includes shares acquired via the company’s Employee Stock Purchase Plan and holdings maintained through the 401(k) Plan.
Market data referenced from InvestingPro indicates that KTOS has produced a 166.42% return over the last year. The stock is trading at a price-to-earnings ratio of 712.9, a figure that signals elevated market expectations for future growth.
Beyond the insider sale, Kratos has continued to advance its role in several defense initiatives and to expand its operational capacity. The company was selected to participate in the War Department's Drone Dominance Program alongside 24 other vendors. That program includes an evaluation process known as "the Gauntlet," in which military operators will test vendor systems. The program concludes with prototype delivery orders valued at approximately $150 million.
Kratos also opened a new 55,000-square-foot facility in Princess Anne, Maryland. The facility is intended to support hypersonic testing operations for multiple military branches and agencies, underscoring the company's work in high-speed flight testing.
Analysts have reacted to these developments by raising valuation targets. Stifel increased its price target for Kratos to $134 from $112, citing order momentum in the company's Valkyrie drone business and progress on the MACH-TB hypersonic testing program. Citizens similarly raised its target to $125 from $105, noting Kratos's position as a key subcontractor on Northrop Grumman's U.S. Marine Corps Collaborative Combat Aircraft contract.
Kratos has also publicly signaled a preference for allocating capital toward technology development and defense capability investments rather than share repurchases, consistent with a corporate strategy of reinvesting profits into innovation.
Taken together, the insider sale and the company's program participation, facility expansion, and analyst commentary reflect continued strategic activity at Kratos in defense sectors such as unmanned systems and hypersonic testing. The scale of recent analyst target increases and the company's involvement in competitive military programs are noteworthy for investors and industry observers assessing Kratos's positioning within defense contracting and aerospace testing markets.