AXQ Capital LP Buys 33,699 Shares of Leonardo DRS, Inc. $DRS

Key Points

• AXQ Capital LP dramatically increased its stake in Leonardo DRS, buying 33,699 additional shares in the fourth quarter and lifting its holdings by 301.6% to 44,872 shares worth about $1.53 million.
• Wall Street sentiment on Leonardo DRS has improved, with recent upgrades from Truist Financial and Wall Street Zen and a consensus rating of Moderate Buy. Analysts’ average price target now stands at $52.00.
• The company posted solid quarterly results, beating earnings and revenue expectations with EPS of $0.26 on revenue of $846 million, while also declaring a quarterly dividend of $0.09 per share.

AXQ Capital LP increased its holdings in shares of Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) by 301.6% during the 4th quarter, according to the company in its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 44,872 shares of the company's stock after buying an additional 33,699 shares during the period. AXQ Capital LP's holdings in Leonardo DRS were worth $1,530,000 at the end of the most recent quarter.

Several other hedge funds have also added to or reduced their stakes in DRS. Clearstead Advisors LLC boosted its position in Leonardo DRS by 564.1% during the 3rd quarter. Clearstead Advisors LLC now owns 684 shares of the company's stock worth $31,000 after buying an additional 581 shares during the period. Leonteq Securities AG acquired a new stake in Leonardo DRS during the 4th quarter worth approximately $34,000. Allworth Financial LP boosted its position in Leonardo DRS by 504.1% during the 3rd quarter. Allworth Financial LP now owns 882 shares of the company's stock worth $40,000 after buying an additional 736 shares during the period. UMB Bank n.a. acquired a new stake in Leonardo DRS during the 3rd quarter worth approximately $45,000. Finally, Pilgrim Partners Asia Pte Ltd acquired a new stake in Leonardo DRS during the 4th quarter worth approximately $46,000. 18.76% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

DRS has been the topic of a number of recent analyst reports. Truist Financial upgraded shares of Leonardo DRS to a "strong-buy" rating in a research report on Friday, May 1st. Morgan Stanley set a $47.00 price target on shares of Leonardo DRS in a research report on Wednesday, February 25th. Wall Street Zen upgraded shares of Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Sunday, May 10th. Bank of America boosted their price target on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, March 25th. Finally, Weiss Ratings downgraded shares of Leonardo DRS from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th. One analyst has rated the stock with a Strong Buy rating, three have given a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $52.00.

Leonardo DRS Stock Down 1.6%

Leonardo DRS stock opened at $47.96 on Tuesday. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. Leonardo DRS, Inc. has a 12-month low of $32.43 and a 12-month high of $49.31. The firm's fifty day moving average is $44.19 and its 200 day moving average is $40.55. The company has a market capitalization of $12.79 billion, a PE ratio of 44.82, a PEG ratio of 3.52 and a beta of 0.34.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its quarterly earnings results on Tuesday, May 5th. The company reported $0.26 EPS for the quarter, beating analysts' consensus estimates of $0.21 by $0.05. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The business had revenue of $846.00 million during the quarter, compared to analyst estimates of $825.05 million. During the same quarter in the previous year, the business posted $0.20 EPS. Leonardo DRS's quarterly revenue was up 5.9% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. As a group, sell-side analysts predict that Leonardo DRS, Inc. will post 1.3 EPS for the current fiscal year.

Leonardo DRS Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 19th will be issued a dividend of $0.09 per share. The ex-dividend date is Tuesday, May 19th. This represents a $0.36 annualized dividend and a yield of 0.8%. Leonardo DRS's dividend payout ratio is presently 33.64%.

Insider Buying and Selling at Leonardo DRS

In other news, SVP Pamela Morrow sold 11,545 shares of the stock in a transaction dated Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total value of $521,025.85. Following the completion of the sale, the senior vice president owned 10,551 shares in the company, valued at $476,166.63. This represents a 52.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Reuben Jeffery III bought 25,000 shares of the stock in a transaction dated Tuesday, May 19th. The stock was purchased at an average price of $42.77 per share, with a total value of $1,069,250.00. Following the acquisition, the director owned 25,000 shares of the company's stock, valued at $1,069,250. The trade was a ∞ increase in their ownership of the stock. Additional details regarding this purchase are available in the official SEC disclosure. In the last three months, insiders have sold 63,906 shares of company stock worth $2,923,463. Corporate insiders own 0.25% of the company's stock.

Leonardo DRS Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy's Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company's portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.

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