Form 4: Kratos Defense Executive Executes Planned Stock Sale

Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, sold 6,500 shares of common stock under a pre-established 10b5-1 trading plan.

Summary

• Phillip D. Carrai, President of the STC Division, sold a total of 6,500 shares of Kratos Defense & Security Solutions (KTOS) common stock.
• The sales were executed on May 15, 2026, in two tranches: 6,000 shares at a weighted average price of $52.0578 and 500 shares at a weighted average price of $53.00.
• The transactions were conducted pursuant to a Rule 10b5-1 trading plan adopted on August 26, 2025.
• Following these transactions, the reporting person maintains direct beneficial ownership of 221,550 shares, in addition to 46,644 shares held in a trust.

Sentiment

Score: 5

Explanation: StockSavvy.ai views this as a neutral event, as the sale was pre-planned and represents a standard liquidity event for a corporate executive.

Positives

• The sale was conducted under a pre-arranged 10b5-1 plan, which is a standard mechanism for executives to sell shares without concerns regarding insider trading based on non-public information.

Negatives

• The sale represents a reduction in the direct equity stake held by a senior division executive.

Risks

• Market perception of insider selling can sometimes lead to short-term volatility in share price.

Future Outlook

No forward-looking guidance or strategic outlook was provided in this filing, as it is a standard disclosure of insider transaction activity.

Industry Context

StockSavvy.ai notes that routine insider selling under 10b5-1 plans is common practice in the defense and technology sectors, typically reflecting personal financial planning rather than a change in corporate outlook.

Comparison to Industry Standards

• The use of 10b5-1 plans is the industry standard for corporate officers to manage equity holdings while maintaining compliance with SEC regulations.
• The volume of shares sold is relatively minor compared to the total holdings of the executive, which is consistent with typical executive diversification strategies.

Stakeholder Impact

• Minimal impact expected on shareholders as the sale was executed via a pre-planned 10b5-1 program.

Next Steps

• No further actions or milestones were disclosed in this filing.

Key Dates

Keywords

Kratos Defense, KTOS, Insider Trading, Form 4, Equity Sale, 10b5-1 Plan