Kratos Defense CEO Eric DeMarco sells $19.3 million in stock

On August 14, 2026, Kratos Defense & Security Solutions CEO Eric M. DeMarco disposed of 300,000 shares of the company's common stock, amounting to about $19.3 million. The sales were executed in line with a pre-established 10b5-1 trading plan, which was initially set on March 6, 2026, and subsequently updated on May 15, 2026. The shares were divided into four transactions, with prices fluctuating between $62.77 and $66.88 per share.

Specifically, 19,638 shares were sold within the $62.77 to $63.76 range, 266,316 shares between $63.77 and $64.76, 4,946 shares in the $64.77 to $65.68 bracket, and 9,100 shares in the $65.89 to $66.88 interval. It is worth noting that all the shares were held indirectly through a trust. Kratos shares have experienced a 27% drop over the past six months, currently trading at $64.58 with a market capitalization of $11.79 billion.

According to InvestingPro analysis, the company is considered overvalued, ranking among the Most Overvalued stocks. Following the stock sales, Mr. DeMarco still holds a beneficial ownership of 761,632 shares indirectly and 63,036 shares directly. These direct holdings consist of 43,925 shares from the Employee Stock Purchase Plan, 19,111 shares from the 401(k) Plan, 745,000 vested deferred restricted stock units (RSUs), and 750,000 unvested RSUs, which are subject to specific vesting conditions.

Kratos Defense & Security Solutions recently reported strong second-quarter 2026 results, surpassing earnings and revenue estimates. The company reported adjusted earnings of $0.21 per share, outperforming the consensus estimate of $0.16, and generated revenues of around $459 million, marking a 30% increase year-over-year. Consequently, Kratos has raised its full-year organic revenue growth outlook to 19% to 23% from the previous range of 15% to 20%.

Analysts have reacted to these results, with Canaccord raising their price target to $135, Stifel lowering it to $115 due to foreign exchange headwinds, and Piper Sandler upgrading the company to an Overweight rating.