Form 4: Kratos Defense & Security Solutions Executive Sells Shares Under 10b5-1 Plan

Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, sold 3,500 shares of common stock under a pre-arranged 10b5-1 trading plan.

Summary

• Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, sold 3,500 shares of common stock on December 16, 2024.
• The sale was executed under a 10b5-1 trading plan adopted on September 15, 2023.
• The shares were sold at a weighted average price of $27.948, with individual transactions ranging from $27.445 to $28.46.
• Following the transaction, Carrai directly owns 262,024 shares and indirectly owns 46,644 shares through a trust.
• The indirect holdings include shares purchased through the company's Employee Stock Purchase Plan and 401(k) Plan.

Sentiment

Score: 5

Explanation: The document reflects a routine stock sale by an executive under a pre-arranged plan, which is neither positive nor negative for the company's outlook.

Industry Context

This is a routine transaction for an executive under a pre-arranged trading plan, and is not unusual in the defense and security industry.

Comparison to Industry Standards

• Executive stock sales under 10b5-1 plans are common across publicly traded companies, including those in the defense sector such as Lockheed Martin (LMT) and Northrop Grumman (NOC).
• These plans allow executives to sell shares without being accused of insider trading, as the sales are pre-scheduled.
• The volume of shares sold is relatively small compared to the total outstanding shares of KTOS, and is not unusual for an executive sale.

Stakeholder Impact

• The stock sale is unlikely to have a significant impact on shareholders, as it is a small transaction by an executive under a pre-arranged plan.

Key Dates

Keywords

Kratos Defense & Security Solutions, Phillip D. Carrai, stock sale, 10b5-1 trading plan, insider trading, executive stock transaction, KTOS