Leonardo DRS, Inc. (NASDAQ:DRS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Analyst sentiment is moderately positive: Six brokerages give Leonardo DRS an average “Moderate Buy” rating, with three buys, two holds, and one strong buy. The average 12-month price target is $53.60.
• Recent results exceeded expectations: Leonardo DRS reported quarterly EPS of $0.35 versus the $0.27 consensus estimate, while revenue rose 10.1% year over year to $913 million.
• Shares have pulled back and insiders have sold stock: DRS opened at $36.07, below its 50-day and 200-day moving averages of $42.75 and $44.05. Insiders sold 64,517 shares worth approximately $2.77 million over the past 90 days, while the company continues to pay a $0.09 quarterly dividend.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) has been assigned an average recommendation of "Moderate Buy" from the six ratings firms that are presently covering the firm, Marketbeat Ratings reports. Two investment analysts have rated the stock with a hold recommendation, three have given a buy recommendation and one has issued a strong buy recommendation on the company. The average 12 month price objective among brokers that have covered the stock in the last year is $53.60.

DRS has been the subject of several research reports. JPMorgan Chase & Co. boosted their target price on Leonardo DRS from $48.00 to $53.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Weiss Ratings upgraded Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, August 6th.

Insider Transactions at Leonardo DRS

In other news, CFO Michael Dippold sold 20,317 shares of Leonardo DRS stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $37.18, for a total value of $755,386.06. Following the transaction, the chief financial officer directly owned 35,143 shares of the company's stock, valued at $1,306,616.74. The trade was a 36.63% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Rinsky sold 3,865 shares of the stock in a transaction on Tuesday, July 7th. The stock was sold at an average price of $45.37, for a total transaction of $175,355.05. Following the sale, the executive vice president owned 27,445 shares of the company's stock, valued at approximately $1,245,179.65. This represents a 12.34% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last ninety days, insiders have sold 64,517 shares of company stock worth $2,773,382. Insiders own 0.25% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of DRS. Quarry LP raised its stake in shares of Leonardo DRS by 7,041.7% during the fourth quarter. Quarry LP now owns 857 shares of the company's stock worth $29,000 after purchasing an additional 845 shares during the last quarter. Global Retirement Partners LLC acquired a new position in Leonardo DRS in the 2nd quarter valued at $31,000. Edmond DE Rothschild Holding S.A. acquired a new position in Leonardo DRS in the 2nd quarter valued at $32,000. Leonteq Securities AG purchased a new position in Leonardo DRS during the 4th quarter worth $34,000. Finally, Fifth Third Bancorp purchased a new position in Leonardo DRS during the 1st quarter worth $41,000. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

Leonardo DRS Price Performance

DRS stock opened at $36.07 on Monday. The stock has a market cap of $9.63 billion, a P/E ratio of 30.31, a PEG ratio of 2.20 and a beta of 0.35. The company has a current ratio of 1.92, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05. Leonardo DRS has a twelve month low of $32.43 and a twelve month high of $50.59. The company's 50 day moving average is $42.75 and its two-hundred day moving average is $44.05.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last issued its earnings results on Friday, July 31st. The company reported $0.35 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.27 by $0.08. The business had revenue of $913.00 million during the quarter, compared to analysts' expectations of $903.27 million. Leonardo DRS had a net margin of 8.52% and a return on equity of 12.97%. The company's revenue for the quarter was up 10.1% on a year-over-year basis. During the same quarter in the prior year, the business posted $0.23 EPS. Research analysts expect that Leonardo DRS will post 1.39 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 27th. Stockholders of record on Thursday, August 13th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend was Thursday, August 13th. Leonardo DRS's dividend payout ratio is presently 30.25%.

Leonardo DRS Company Profile

Leonardo DRS, Inc is a defense technology company that develops and manufactures advanced products and systems for the U.S. Department of Defense, other government agencies and allied military customers. The company supports land, sea and air platforms as well as command, control, communications, computers, intelligence, surveillance and reconnaissance missions.

Its offerings include electro-optical and infrared sensing systems, network computing and communications equipment, electronic warfare technologies, power and propulsion systems, thermal management solutions, force protection products and advanced battle-management systems.

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