---
title: "Kratos insiders made 69 sales in six months and not one purchase"
description: "Every one of 69 open-market insider trades in Kratos over the past six months was a sale, led by CEO Eric DeMarco's $19.3 million near $64 a share. Cathie Wood's ARK bought $3 million more this week near $35, on the other side of the same tape."
publisher: "The Inference"
section: "Robotics & Defense"
published: 2026-11-13T18:20:51.789Z
modified: 2026-11-13T18:20:51.789Z
canonical: https://theinference.org/article/kratos-insiders-made-69-sales-in-six-months-and-not-one-purchase
language: en
keywords: "Kratos Defense, Insider Trading, Defense, ARK Invest, Drones"
---

# Kratos insiders made 69 sales in six months and not one purchase

> Every one of 69 open-market insider trades in Kratos over the past six months was a sale, led by CEO Eric DeMarco's $19.3 million near $64 a share. Cathie Wood's ARK bought $3 million more this week near $35, on the other side of the same tape.

## Sixty-nine insider trades, not one buy

Kratos Defense & Security Solutions (NASDAQ: KTOS), the San Diego contractor behind the Valkyrie combat drone, has spent six months writing a one-sided ledger: 69 open-market insider trades, every one a sale and not a single purchase, a pace [the SEC's Form 4 filing log](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001069258&type=4&dateb=&owner=include&count=40) confirms with a new notice every few days since May [1][2].

CEO Eric DeMarco's four sales moved 300,000 shares for an estimated $19.3 million, about $64 a share on average; CFO Deanna Lund sold 29,000 shares across 14 sales [1]. The dated prints: division president Steven Fendley sold at $56.16 on August 24, director Scot Jarvis at $63.50 on August 18 [3].

The stock closed November 12 at $34.75, [down 5.3% on the day](https://www.marketbeat.com/instant-alerts/price-kratos-defense-security-solutions-nasdaq-ktos-stock-falls-53-heres-why-2026-11-12/) and about 43% below its 200-day average [3]. Sixty-nine sales in six months, and the only named buyer this week was [Cathie Wood](https://theinference.org/markets/people/cathie-wood).

*Chart: **DeMarco's $19.3M of sales tops the rest of the named roster combined** Bar chart of estimated open-market sale proceeds per Kratos insider over the past six months: CEO Eric DeMarco $19.3M, Steve Fendley $3.5M, Phillip Carrai $3.29M, Jonah Adelman $1.79M, CFO Deanna Lund $1.45M, director Scot Jarvis $0.63M*

*Estimated open-market sale proceeds per insider over the past six months, in $ millions, per Quiver Quantitative's insider tracker, November 12, 2026. [1]*

## The one big buyer is Cathie Wood

On November 11, ARK Innovation bought 66,183 shares and ARK Autonomous Technology & Robotics added 19,020, more than $3 million combined, an average above $35 [4][5]. ARK had also bought on November 6, the day after earnings, across three funds including ARK Space & Defense [6]. What the funds hold: [third-quarter revenue of $471.8 million, up 35.7%](https://www.marketscreener.com/news/kratos-reports-third-quarter-2026-financial-results-ce785fdddb8fff25), [$1.037 billion of bookings at a 2.2-to-1 book-to-bill](https://theinference.org/article/kratos-booked-1-04-billion-of-orders-2-2-times-revenue-while-burning-29-4-million-of-cash), a record $2.65 billion backlog, and 2027 guidance of $2.1 to $2.2 billion [7]. The stock is still down about 53% this year [4].

## The growth still burns cash

The same quarter lost $4.9 million at the operating line and used $29.4 million of free cash flow after $30.2 million of capital spending [7]. [Kratos](https://theinference.org/markets/companies/kratos-defense) guides to a full-year 2026 cash use of $110 to $120 million and does not expect to turn cash-flow positive until 2029 [7][8]. [Unmanned Systems, the segment that builds Valkyrie](https://theinference.org/article/kratos-is-building-a-drone-line-for-35-40-aircraft-a-year-its-order-book-is-four), shrank to $74.6 million and booked a 0.8-to-1 book-to-bill [7]. BTIG cut its target from $104 to $65, KeyBanc from $130 to $75 and Guggenheim from $74 to $67, yet the consensus sits at $77.40, more than double the price [3][9].

*Chart: **Revenue is up 67% in two years while free cash flow stays negative** Line chart of Kratos quarterly revenue and free cash flow, Q4 2024 to Q3 2026: revenue rises from $283.1M to $471.8M while free cash flow is negative in seven of the eight quarters*

*Quarterly revenue and free cash flow in $ millions, Q4 2024 to Q3 2026, from Kratos's quarterly filings with the SEC. [10]*

*Chart: **The lowest analyst target is still 87% above the $34.75 close** Bar chart of analyst price targets for Kratos: BTIG $65, Guggenheim $67, KeyBanc $75 and a consensus of $77.40, against a November 12 close of $34.75*

*Analyst price targets in dollars after the third-quarter results, against Kratos's November 12, 2026 close of $34.75. Sources: MarketBeat, TradingView. [3][9]*

## December 11 and late February decide what comes next

The insiders' defense is on the record: Fendley's sale ran under a 10b5-1 plan, a selling schedule committed in advance, and he still held 288,111 shares afterward; no filing states intent [3]. The filings do state arithmetic: nobody on the roster bought at $35 [7]. The same tell ran through [NuScale in October](https://theinference.org/article/nuscale-sold-985-million-of-stock-in-six-months-against-75-000-of-revenue) [7]. What moves the stock next is dated: the federal continuing resolution that restricts new program starts runs at least to December 11, and Kratos says it must reassess its 2027 forecast if it stretches past March 31 [7]. Fourth-quarter results land in late February [7].

## Takeaway

Kratos insiders made 69 open-market sales in six months and not one purchase, led by CEO Eric DeMarco's $19.3 million near $64 a share, while Cathie Wood's ARK bought $3 million near $35.

## Sources

1. [Quiver Quantitative, Kratos Defense Shares Fall as Post-Earnings Cash Burn and Segment Weakness Weigh on Sentiment, 12 November 2026](https://www.quiverquant.com/news/Kratos+Defense+Shares+Fall+as+Post-Earnings+Cash+Burn+and+Segment+Weakness+Weigh+on+Sentiment)
2. [SEC EDGAR, Kratos Defense & Security Solutions Form 4 filing index, retrieved 13 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001069258&type=4&dateb=&owner=include&count=40)
3. [MarketBeat, Kratos Defense & Security Solutions (NASDAQ:KTOS) Stock Falls 5.3% - Here's Why, 12 November 2026](https://www.marketbeat.com/instant-alerts/price-kratos-defense-security-solutions-nasdaq-ktos-stock-falls-53-heres-why-2026-11-12/)
4. [Benzinga, Cathie Wood Loads Up on Kratos Defense: ARK ETFs Buy $3M as Pentagon Bets on Autonomous Warfare, 12 November 2026](https://www.benzinga.com/etfs/specialty-etfs/26/11/63196929/cathie-wood-loads-up-on-kratos-defense-ark-etfs-buy-3m-as-pentagon-bets-on-autonomous-warfare)
5. [Yahoo Finance (Stocktwits), Cathie Wood's ARK Invest Buys $3M In KTOS Stock, 12 November 2026](https://finance.yahoo.com/markets/stocks/articles/cathie-woods-ark-invest-buys-074631993.html)
6. [Stocktwits, Cathie Wood-Led Ark Loads Up On GOOG, AMD, NVDA And Biotech Stocks, 7 November 2026](https://stocktwits.com/news-articles/markets/equity/cathie-wood-ark-invest-buys-goog-amd-nvda-biotech-stocks-sell-crwv-avgo-lly/cNGVV2wR9Ii)
7. [Kratos Defense press release via GlobeNewswire/MarketScreener, Kratos Reports Third Quarter 2026 Financial Results, 5 November 2026](https://www.marketscreener.com/news/kratos-reports-third-quarter-2026-financial-results-ce785fdddb8fff25)
8. [Transcript Daily, Kratos Defense & Security Solutions Q3 Earnings Call Highlights, 8 November 2026](https://transcriptdaily.com/2026/11/08/kratos-defense-security-solutions-q3-earnings-call-highlights.html)
9. [TradingView (Benzinga), Kratos Defense Rises on THAICOM 10 Contract With Recent Earnings in Focus, 9 November 2026](https://www.tradingview.com/news/benzinga:b656d40d4094b:0-kratos-defense-rises-on-thaicom-10-contract-with-recent-earnings-in-focus/)
10. [Kratos Defense quarterly figures from its SEC filings, retrieved 13 November 2026](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0001069258)


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Kratos insiders made 69 sales in six months and not one purchase — The Inference. Canonical: https://theinference.org/article/kratos-insiders-made-69-sales-in-six-months-and-not-one-purchase