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

David M. Carter, President of DRSS Division at Kratos Defense & Security Solutions, sold 4,000 shares of common stock at an average price of $22.4061 under a pre-arranged 10b5-1 trading plan.

Summary

• On September 3, 2024, David M. Carter, President of the DRSS Division at Kratos Defense & Security Solutions, sold 4,000 shares of common stock.
• The sale was executed under a 10b5-1 trading plan adopted on May 20, 2024.
• The shares were sold at a weighted average price of $22.4061, with individual prices ranging from $22.10 to $22.69.
• Following the transaction, Carter directly owns 119,154 shares, which includes shares purchased through the Employee Stock Purchase Plan and held in the 401(k) Plan.

Sentiment

Score: 5

Explanation: Neutral sentiment as the transaction is a routine sale under a pre-existing trading plan and doesn't necessarily indicate a negative outlook on the company.

Industry Context

Executive stock sales are a common occurrence and are often pre-planned using 10b5-1 trading plans to avoid accusations of insider trading. The sale represents a small percentage of Carter's overall holdings.

Stakeholder Impact

• The sale of shares by an executive could be perceived negatively by some shareholders, although the existence of a 10b5-1 plan mitigates this concern.

Key Dates