Citigroup Forecasts Strong Price Appreciation for Leidos (NYSE:LDOS) Stock

Key Points

• Citigroup raised its Leidos price target from $141 to $163 and reiterated a “buy” rating, implying 18.31% upside from the prior close.
• Analysts’ consensus is “Moderate Buy,” with an average price target of $161.29; opinions vary, including several Hold ratings and recent target cuts.
• Leidos beat quarterly EPS estimates ($3.62 versus $3.04) and reported revenue growth of 3.6% year over year, though revenue fell short of analyst expectations.

Leidos (NYSE:LDOS - Get Free Report) had its price objective hoisted by investment analysts at Citigroup from $141.00 to $163.00 in a note issued to investors on Tuesday, Benzinga reports. The firm currently has a "buy" rating on the aerospace company's stock. Citigroup's price target would suggest a potential upside of 18.31% from the company's previous close.

A number of other research firms have also recently weighed in on LDOS. BNP Paribas Exane upped their price target on Leidos from $165.00 to $175.00 and gave the stock an "outperform" rating in a report on Wednesday, August 5th. Royal Bank Of Canada cut their price target on shares of Leidos from $180.00 to $170.00 and set an "outperform" rating on the stock in a report on Wednesday, August 5th. The Goldman Sachs Group decreased their price objective on shares of Leidos from $152.00 to $132.00 and set a "neutral" rating for the company in a report on Wednesday, August 12th. JPMorgan Chase & Co. lowered Leidos from an "overweight" rating to a "neutral" rating and lowered their target price for the company from $160.00 to $142.00 in a report on Thursday, October 8th. Finally, Robert W. Baird set a $150.00 price objective on Leidos in a research report on Wednesday, August 5th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and nine have issued a Hold rating to the company's stock. According to MarketBeat, Leidos currently has a consensus rating of "Moderate Buy" and an average target price of $161.29.

Leidos Trading Up 1.5%

NYSE LDOS traded up $2.02 during mid-day trading on Tuesday, hitting $137.78. The company's stock had a trading volume of 232,383 shares, compared to its average volume of 1,293,169. The firm has a market capitalization of $16.81 billion, a P/E ratio of 12.33, a price-to-earnings-growth ratio of 1.48 and a beta of 0.55. The company has a debt-to-equity ratio of 1.15, a current ratio of 1.60 and a quick ratio of 1.60. Leidos has a 52-week low of $98.86 and a 52-week high of $205.00. The stock's fifty day simple moving average is $129.04 and its two-hundred day simple moving average is $139.91.

Leidos (NYSE:LDOS - Get Free Report) last released its quarterly earnings data on Tuesday, November 3rd. The aerospace company reported $3.62 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.04 by $0.58. Leidos had a net margin of 7.97% and a return on equity of 31.48%. The company had revenue of $4.63 billion during the quarter, compared to analyst estimates of $4.71 billion. During the same quarter in the prior year, the business earned $3.05 earnings per share. The business's quarterly revenue was up 3.6% compared to the same quarter last year. Research analysts expect that Leidos will post 12.62 EPS for the current year.

Leidos announced that its Board of Directors has authorized a share buyback plan on Friday, July 31st that allows the company to repurchase 20,000,000 shares. This repurchase authorization allows the aerospace company to purchase shares of its stock through open market purchases. Share repurchase plans are often a sign that the company's board of directors believes its shares are undervalued.

Insider Buying and Selling at Leidos

In other news, Director Gary May sold 1,000 shares of Leidos stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total value of $140,850.00. Following the transaction, the director owned 10,204 shares of the company's stock, valued at $1,437,233.40. The trade was a 8.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Company insiders own 0.77% of the company's stock.

Institutional Trading of Leidos

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Fulton Bank N.A. lifted its stake in Leidos by 4.9% in the 2nd quarter. Fulton Bank N.A. now owns 2,260 shares of the aerospace company's stock valued at $233,000 after purchasing an additional 106 shares during the last quarter. Groupe la Francaise boosted its position in Leidos by 10.2% in the second quarter. Groupe la Francaise now owns 1,509 shares of the aerospace company's stock valued at $155,000 after buying an additional 140 shares in the last quarter. Resolute Wealth Strategies LLC grew its stake in shares of Leidos by 3.0% during the first quarter. Resolute Wealth Strategies LLC now owns 5,304 shares of the aerospace company's stock worth $825,000 after buying an additional 153 shares during the last quarter. Parallel Advisors LLC grew its stake in shares of Leidos by 12.6% during the third quarter. Parallel Advisors LLC now owns 1,391 shares of the aerospace company's stock worth $169,000 after buying an additional 156 shares during the last quarter. Finally, Net Worth Advisory Group grew its stake in shares of Leidos by 3.3% during the third quarter. Net Worth Advisory Group now owns 5,041 shares of the aerospace company's stock worth $615,000 after buying an additional 161 shares during the last quarter. 76.12% of the stock is owned by institutional investors and hedge funds.

About Leidos

Leidos Holdings, Inc. is a technology and engineering company that provides services and solutions to government and commercial customers. Its work spans defense, intelligence, civil government and health, with offerings in areas such as information technology, cybersecurity, data analytics, engineering and mission software. The company also develops and integrates systems and equipment for complex missions, including defense and aviation applications, and provides technology and services to support government health programs and healthcare organizations.

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