In this article, I will feature one services sector stock that has seen intensive insider buying during the last 30 days. Intensive insider buying can be defined by the following three criteria:
- The stock is purchased by three or more insiders within one month.
- The stock is sold by no insiders in the month of intensive purchasing.
- At least two purchasers increased their holdings by more than 10%.
Kratos Defense & Security Solutions (NASDAQ:KTOS) provides mission critical products, services, and solutions in the United States and internationally.
Insider buying during the last 30 days
Here is a table of Kratos' insider-trading activity during the last 30 days by insider.
|Name||Title||Trade Date||Shares Purchased||Current Ownership||Increase In Shares|
|Eric Demarco||CEO||Dec 2||31,273||326,468 shares||+10.6%|
|Deanna Lund||CFO||Dec 2||4,500||52,609 shares||+9.4%|
|Jane Judd||Director||Nov 27||4,180||20,180 shares||+26.1%|
|Thomas Mills||President, Modular Systems||Nov 27||4,250||44,626 shares||+10.5%|
There have been 44,203 shares purchased by insiders during the last 30 days.
Insider buying by calendar month
Here is a table of Kratos' insider-trading activity by calendar month.
|Month||Insider buying / shares||Insider selling / shares|
There have been 144,763 shares purchased and there have been zero shares sold by insiders this year.
Kratos reported the third-quarter financial results on November 7 with the following highlights:
|Net loss||$9.9 million|
Kratos' guidance is as follows:
|Revenue||$240-$260 million||$955-$975 million|
|Adjusted EBITDA||$26-$30 million||$102-$106 million|
|Adjusted free cash flow||N/A||$5-$15 million|
Kratos has the lowest P/S ratio among these three companies.
Here is a table of these competitors' insider-trading activities this year.
|Company||Insider buying / shares||Insider selling / shares|
Only Kratos has seen intensive insider buying during the last 30 days.
There have been four different insiders buying Kratos and there have not been any insiders selling Kratos during the last 30 days. Three of these four insiders increased their holdings by more than 10%. Kratos has an insider ownership of 0.20%.
There are four analyst buy ratings, one neutral rating, and zero sell ratings with an average price target of $9.88. Kratos is trading at a forward P/E ratio 12.77 and the company has a book value of $5.28 per share. The stock is currently trading right at its 200-day moving average, which could be a good entry point for the stock based on the intensive insider buying.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in KTOS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.