Form 4: Kratos Officer Phillip D. Carrai Sells 6,000 Shares Under 10b5-1 Plan

Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, sold 6,000 shares of common stock at an average price of $33.726 per share, executed under a pre-arranged 10b5-1 trading plan.

Summary

• On May 15, 2025, Phillip D. Carrai, President of the STC Division at Kratos Defense & Security Solutions, sold 6,000 shares of the company's common stock.
• The sale was executed at a weighted average price of $33.726 per share, with individual transactions ranging from $33.56 to $33.925.
• The transaction was conducted under a 10b5-1 trading plan adopted on November 15, 2024.
• Following the sale, Carrai directly owns 282,084 shares and indirectly owns 46,644 shares through a trust.
• The directly owned shares include 11,385 shares purchased through the Employee Stock Purchase Plan and approximately 4,220 shares held through the 401(k) Plan.

Sentiment

Score: 5

Explanation: The sentiment is neutral as it reports a routine stock sale under a pre-existing trading plan. There is no indication of positive or negative implications for the company's performance.

Industry Context

Insider sales are a common occurrence in publicly traded companies. The use of a 10b5-1 trading plan allows insiders to sell shares over a predetermined period, mitigating concerns about trading on non-public information. The market typically views these sales in the context of the overall financial health and future prospects of the company.

Comparison to Industry Standards

• Comparing Carrai's transactions to those of other executives in similar defense and security companies would provide context.
• Companies like Lockheed Martin (LMT), Northrop Grumman (NOC), and General Dynamics (GD) often have insider trading activity.
• Analyzing the frequency and size of these transactions relative to company performance and industry trends can offer insights.
• For example, if other executives in Kratos or similar companies are also selling shares, it could indicate a broader trend or concern.

Stakeholder Impact

• The sale of shares by an executive could be perceived negatively by some shareholders, but the existence of a 10b5-1 plan mitigates concerns about insider information.
• The impact on employees, customers, suppliers, and creditors is likely to be minimal.

Key Dates

Keywords

Kratos Defense & Security Solutions, Phillip D. Carrai, stock sale, Form 4, 10b5-1 trading plan, insider trading, KTOS, STC Division