Leonardo DRS, Inc. (NASDAQ:DRS) Stock Has Consensus Target Price of $53.17 According to Analysts

Key Points

• Analysts maintain a bullish outlook: Leonardo DRS has a consensus “Buy” rating from seven analysts, with an average 12-month price target of $53.17 versus its recent opening price of $35.87.
• Quarterly results exceeded expectations: The company reported earnings of $0.35 per share versus the $0.27 consensus estimate, while revenue reached $913 million and increased 10.1% year over year.
• Investors receive a modest dividend: Leonardo DRS recently paid a quarterly dividend of $0.09, or $0.36 annually, representing a 1.0% yield and a 30.25% payout ratio.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) has earned a consensus rating of "Buy" from the seven ratings firms that are presently covering the stock, Marketbeat.com reports. Two analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and two have given a strong buy recommendation to the company. The average 1 year price target among brokerages that have updated their coverage on the stock in the last year is $53.17.

Several equities analysts have weighed in on DRS shares. JPMorgan Chase & Co. lifted their price target on shares of Leonardo DRS from $48.00 to $53.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Weiss Ratings raised shares of Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, August 6th. Finally, Guggenheim started coverage on shares of Leonardo DRS in a research report on Monday, September 14th. They set a "buy" rating and a $51.00 price objective on the stock.

Leonardo DRS Stock Performance

Shares of DRS opened at $35.87 on Friday. The business has a 50-day simple moving average of $39.45 and a two-hundred day simple moving average of $42.92. The company has a quick ratio of 1.56, a current ratio of 1.92 and a debt-to-equity ratio of 0.05. Leonardo DRS has a 52 week low of $32.43 and a 52 week high of $50.59. The stock has a market cap of $9.57 billion, a price-to-earnings ratio of 30.14, a PEG ratio of 2.21 and a beta of 0.32.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its quarterly earnings data on Friday, July 31st. The company reported $0.35 earnings per share for the quarter, beating analysts' consensus estimates of $0.27 by $0.08. The firm had revenue of $913.00 million for the quarter, compared to analysts' expectations of $903.27 million. Leonardo DRS had a return on equity of 12.97% and a net margin of 8.52%.The business's quarterly revenue was up 10.1% on a year-over-year basis. During the same period in the previous year, the firm earned $0.23 EPS. On average, analysts expect that Leonardo DRS will post 1.37 EPS for the current year.

Leonardo DRS Dividend Announcement

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

Insider Transactions at Leonardo DRS

In other news, EVP Jason Rinsky sold 3,864 shares of the business's stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $45.81, for a total value of $177,009.84. Following the transaction, the executive vice president directly owned 23,581 shares in the company, valued at $1,080,245.61. The trade was a 14.08% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 20,317 shares of the company's stock in a transaction dated Wednesday, September 2nd. The stock was sold at an average price of $37.18, for a total value of $755,386.06. Following the completion of the transaction, the chief financial officer directly owned 35,143 shares of the company's stock, valued at approximately $1,306,616.74. This trade represents a 36.63% 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. 0.25% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. bought a new stake in shares of Leonardo DRS during the second quarter valued at approximately $212,883,000. Stephens Investment Management Group LLC boosted its position in shares of Leonardo DRS by 107.6% during the first quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company's stock worth $94,308,000 after acquiring an additional 1,098,108 shares during the last quarter. Bank of America Corp DE purchased a new position in Leonardo DRS during the second quarter valued at $24,941,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in Leonardo DRS during the second quarter valued at $24,857,000. Finally, Bank of New York Mellon Corp grew its stake in Leonardo DRS by 3.1% during the first quarter. Bank of New York Mellon Corp now owns 517,166 shares of the company's stock valued at $23,024,000 after acquiring an additional 15,349 shares in the last quarter. 18.76% of the stock is currently owned by institutional investors.

About Leonardo DRS

Leonardo DRS, Inc is a defense technology company that develops and manufactures advanced systems and equipment for the U.S. military, government agencies and allied defense customers. The company focuses on technologies intended to improve situational awareness, battlefield connectivity, survivability and mission effectiveness.

Its products and services include sensing and surveillance systems, electronic warfare equipment, mission computing, networking and communications technologies, force-protection systems, power conversion and propulsion solutions, and advanced materials.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.