Executives sold $1.6M in Kratos shares in Jan 2026 amid strong earnings and rising stock, despite ongoing profitability concerns.

Kratos Defense & Security Solutions (KTOS) saw insider selling in early January 2026, with executives David Carter and Thomas Iv Mills selling shares totaling over $1.6 million, reducing their stakes significantly. Despite the sales, the stock rose to $113.70 on January 9, with heavy trading volume, following strong Q3 earnings on November 4, 2025, which beat expectations with $0.14 EPS and 26% revenue growth. The company, valued at $19.2 billion, continues to attract investor interest due to a major Northrop Grumman contract and defense sector support, though concerns persist over its unprofitability, cash burn, and high valuation.