Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) insiders sold US$1.2m worth of stock, possibly signalling a downtrend

A number of Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) insiders sold their shares in the last year, which may have raised concerns among investors. When analyzing insider transactions, it is usually more valuable to know whether insiders are buying versus knowing if they are selling, as the latter sends an ambiguous message. However, shareholders should take a deeper look if several insiders are selling stock over a specific time period.

While we would never suggest that investors should base their decisions solely on what the directors of a company have been doing, logic dictates you should pay some attention to whether insiders are buying or selling shares.

View our latest analysis for Kratos Defense & Security Solutions

Kratos Defense & Security Solutions Insider Transactions Over The Last Year

Over the last year, we can see that the biggest insider sale was by the President of C5ISR Modular Systems Division, Thomas Mills, for US$379k worth of shares, at about US$25.10 per share. While insider selling is a negative, to us, it is more negative if the shares are sold at a lower price. It's of some comfort that this sale was conducted at a price well above the current share price, which is US$22.17. So it is hard to draw any strong conclusion from it.

In the last year Kratos Defense & Security Solutions insiders didn't buy any company stock. The chart below shows insider transactions (by companies and individuals) over the last year. If you click on the chart, you can see all the individual transactions, including the share price, individual, and the date!

If you like to buy stocks that insiders are buying, rather than selling, then you might just love this free list of companies. (Hint: insiders have been buying them).

Does Kratos Defense & Security Solutions Boast High Insider Ownership?

Many investors like to check how much of a company is owned by insiders. I reckon it's a good sign if insiders own a significant number of shares in the company. It appears that Kratos Defense & Security Solutions insiders own 1.6% of the company, worth about US$43m. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders.

So What Does This Data Suggest About Kratos Defense & Security Solutions Insiders?

It doesn't really mean much that no insider has traded Kratos Defense & Security Solutions shares in the last quarter. We don't take much encouragement from the transactions by Kratos Defense & Security Solutions insiders. But we do like the fact that insiders own a fair chunk of the company. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Kratos Defense & Security Solutions. While conducting our analysis, we found that Kratos Defense & Security Solutions has 1 warning sign and it would be unwise to ignore it.

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, but not derivative transactions.

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.

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