Kratos shares dropped after CEO Eric Demarco sold $16.1M in stock despite strong earnings.

Kratos (KTOS) shares fell 3.6% to $79.34 on December 22, 2025, after CEO Eric M. Demarco sold 200,000 shares for $16.1 million at $80.53 each, reducing his ownership by 20.08%. Insider Stacey G. Rock also sold 8,549 shares on December 18. Despite strong Q3 results—$0.14 EPS and $347.6 million in revenue, up 26% year-over-year—and a "Moderate Buy" analyst rating, the insider sales triggered a sell-off. Trading volume surged to 316,348 shares. The company, valued at $13.4 billion, remains focused on defense technologies like unmanned systems and missile defense.