Have Kratos Defense & Security Solutions Insiders Been Selling Stock?

We wouldn't blame Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) shareholders if they were a little worried about the fact that Steven Fendley, the President of Unmanned Systems Division recently netted about US$536k selling shares at an average price of US$21.44. However, it's crucial to note that they remain very much invested in the stock and that sale only reduced their holding by 5.9%.

See our latest analysis for Kratos Defense & Security Solutions

The Last 12 Months Of Insider Transactions At Kratos Defense & Security Solutions

The President of Microwave Electronics Division, Yonah Adelman, made the biggest insider sale in the last 12 months. That single transaction was for US$1.1m worth of shares at a price of US$16.50 each. That means that an insider was selling shares at slightly below the current price (US$21.54). When an insider sells below the current price, it suggests that they considered that lower price to be fair. That makes us wonder what they think of the (higher) recent valuation. However, while insider selling is sometimes discouraging, it's only a weak signal. This single sale was just 50% of Yonah Adelman's stake.

Kratos Defense & Security Solutions insiders didn't buy any shares over the last year. The chart below shows insider transactions (by companies and individuals) over the last year. By clicking on the graph below, you can see the precise details of each insider transaction!

If you are like me, then you will not want to miss this free list of small cap stocks that are not only being bought by insiders but also have attractive valuations.

Insider Ownership Of Kratos Defense & Security Solutions

For a common shareholder, it is worth checking how many shares are held by company insiders. We usually like to see fairly high levels of insider ownership. It appears that Kratos Defense & Security Solutions insiders own 2.4% of the company, worth about US$78m. This level of insider ownership is good but just short of being particularly stand-out. It certainly does suggest a reasonable degree of alignment.

What Might The Insider Transactions At Kratos Defense & Security Solutions Tell Us?

Insiders sold Kratos Defense & Security Solutions shares recently, but they didn't buy any. And even if we look at the last year, we didn't see any purchases. Insiders own shares, but we're still pretty cautious, given the history of sales. We'd practice some caution before buying! In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kratos Defense & Security Solutions. To assist with this, we've discovered 2 warning signs that you should run your eye over to get a better picture of Kratos Defense & Security Solutions.

Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of interesting companies.

For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.