Defense Stock Slips on $500 Million Stock Offering

Group 1 - Kratos Defense and Security Solutions Inc announced a sale of $500 million in stock, leading to a 2.6% decline in shares to $41.25 [1] - The stock has fallen from a recent high of $46.52 on June 23, marking a 19-year peak, while year-to-date performance shows a 49.5% increase [1] - Stifel maintained a "buy" rating, indicating confidence in Kratos' potential for growth through incremental investments [1] Group 2 - Options trading for Kratos stock has increased significantly, with 4,893 calls and 1,839 puts exchanged, tripling the average volume [2] - The most popular options are the July 42.50 call and the July 40 put, with new positions being opened for both [2] Group 3 - Short interest in Kratos stock is at 6.4% of its available float, indicating a notable level of bearish sentiment [3] - It would take more than three days for short sellers to cover their positions based on the average trading pace of Kratos [3]