Leidos (NYSE:LDOS) Stock Price Expected to Rise, Bank of America Analyst Says

Key Points

• Bank of America raised Leidos’ price target from $125 to $135 while maintaining a neutral rating, implying 4.73% upside from the prior close.
• Analyst sentiment remains cautious: Leidos has a consensus “Hold” rating and an average price target of $163.60, despite several Buy and Overweight recommendations.
• Leidos exceeded quarterly expectations with $3.26 EPS and $4.56 billion in revenue, while authorizing a 20 million-share buyback that may signal management views the stock as undervalued.

Leidos (NYSE:LDOS - Get Free Report) had its target price increased by analysts at Bank of America from $125.00 to $135.00 in a research note issued to investors on Friday, Benzinga reports. The firm currently has a "neutral" rating on the aerospace company's stock. Bank of America's price objective indicates a potential upside of 4.73% from the company's previous close.

A number of other equities analysts also recently commented on the stock. Truist Financial reduced their target price on shares of Leidos from $195.00 to $160.00 and set a "buy" rating for the company in a report on Friday, July 10th. Robert W. Baird set a $150.00 target price on shares of Leidos in a research report on Wednesday, August 5th. Jefferies Financial Group reiterated a "hold" rating and set a $145.00 price objective on shares of Leidos in a report on Sunday, August 9th. JPMorgan Chase & Co. dropped their target price on Leidos from $210.00 to $160.00 and set an "overweight" rating on the stock in a research note on Monday, July 13th. Finally, Wall Street Zen upgraded Leidos from a "hold" rating to a "buy" rating in a research note on Thursday, July 16th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating and ten have assigned a Hold rating to the stock. Based on data from MarketBeat, Leidos presently has a consensus rating of "Hold" and an average target price of $163.60.

Leidos Stock Performance

Shares of NYSE:LDOS traded down $2.06 during midday trading on Friday, hitting $128.90. The company had a trading volume of 343,466 shares, compared to its average volume of 1,314,188. Leidos has a 12-month low of $98.86 and a 12-month high of $205.77. The company has a fifty day moving average of $127.47 and a two-hundred day moving average of $134.87. The company has a market cap of $16.18 billion, a price-to-earnings ratio of 12.01, a PEG ratio of 1.45 and a beta of 0.56. The company has a debt-to-equity ratio of 1.13, a current ratio of 1.63 and a quick ratio of 1.60.

Leidos (NYSE:LDOS - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $3.26 EPS for the quarter, topping analysts' consensus estimates of $2.91 by $0.35. Leidos had a return on equity of 30.81% and a net margin of 7.80%.The company had revenue of $4.56 billion for the quarter, compared to analysts' expectations of $4.44 billion. During the same period in the previous year, the firm earned $3.21 EPS. The firm's revenue was up 7.2% compared to the same quarter last year. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. On average, equities research analysts expect that Leidos will post 12.28 EPS for the current fiscal year.

Leidos declared that its board has initiated a stock repurchase program on Friday, July 31st that permits the company to buyback 20,000,000 shares. This buyback authorization permits the aerospace company to purchase shares of its stock through open market purchases. Shares buyback programs are typically a sign that the company's leadership believes its stock is undervalued.

Insiders Place Their Bets

In related news, Director Noel B. Geer sold 10,000 shares of the company's stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the transaction, the director owned 34,274 shares of the company's stock, valued at approximately $4,820,980.84. This represents a 22.59% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Gary May sold 1,000 shares of Leidos stock in a transaction dated Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total value of $140,850.00. Following the completion of the sale, the director owned 10,204 shares of the company's stock, valued at $1,437,233.40. This trade represents a 8.93% decrease in their position. The SEC filing for this sale provides additional information. Corporate insiders own 0.77% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the company. Longview Financial Advisors Inc. purchased a new stake in shares of Leidos in the first quarter worth approximately $26,000. Hantz Financial Services Inc. grew its position in Leidos by 94.7% in the 4th quarter. Hantz Financial Services Inc. now owns 148 shares of the aerospace company's stock worth $27,000 after purchasing an additional 72 shares in the last quarter. Hilton Head Capital Partners LLC purchased a new stake in Leidos in the 4th quarter valued at about $28,000. Kelleher Financial Advisors purchased a new position in shares of Leidos in the 2nd quarter worth approximately $28,000. Finally, Manchester Capital Management LLC increased its position in shares of Leidos by 6,366.7% during the fourth quarter. Manchester Capital Management LLC now owns 194 shares of the aerospace company's stock valued at $35,000 after acquiring an additional 191 shares during the last quarter. 76.12% of the stock is owned by institutional investors and hedge funds.

About Leidos

Leidos Holdings, Inc NYSE: LDOS is a technology, engineering and services company that supports government and commercial customers in the defense, intelligence, civil and health markets. The company provides mission-critical solutions involving information technology, cybersecurity, data analytics, artificial intelligence, systems integration, engineering and scientific research.

Its defense and intelligence activities include command-and-control systems, mission software, surveillance and reconnaissance solutions, logistics, aircraft and weapons systems support, and national security services.

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