Franklin Resources Inc. Reduces Stake in Kratos Defense & Security Solutions

Asset management firm cuts position in aerospace and defense company by 15.7% in Q3 2025

Mar. 12, 2026 at 10:34am

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Franklin Resources Inc., a major institutional investor, reduced its stake in Kratos Defense & Security Solutions, Inc. (NASDAQ:KTOS) by 15.7% in the third quarter of 2025, according to a recent SEC filing. The firm now owns 4,287,426 shares of the aerospace company's stock, worth approximately $391.7 million.

Why it matters

Kratos Defense & Security Solutions is a leading provider of advanced technology solutions for the U.S. government and military. Franklin Resources' reduced position in the company could signal a shift in investor sentiment or portfolio strategy, which could impact the stock price and the company's access to capital.

The details

According to the 13F filing, Franklin Resources sold 799,068 shares of Kratos Defense & Security Solutions during the third quarter, reducing its total stake to 4,287,426 shares, or approximately 2.54% of the company's outstanding shares. The asset management firm cited unspecified reasons for the reduction in its position.

  • The filing covers the third quarter of 2025, which ended on September 30, 2025.

The players

Franklin Resources Inc.

A global investment management organization that provides a range of investment management and related services to institutional and individual investors around the world.

Kratos Defense & Security Solutions, Inc.

An American aerospace and defense company that specializes in unmanned systems, satellite communications, missile defense, cyber security, and directed-energy weapons.

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The takeaway

The reduction in Franklin Resources' position in Kratos Defense & Security Solutions could signal a broader shift in investor sentiment towards the aerospace and defense sector, or it could be part of a strategic portfolio rebalancing by the asset management firm. Investors will likely be closely watching Kratos' performance and any further changes in institutional ownership in the coming quarters.