Geode Capital Management LLC Boosts Stake in Leidos Holdings, Inc. $LDOS

Key Points

• Geode Capital Management increased its stake in Leidos by 1.9% in the fourth quarter, adding 64,909 shares and bringing its total holding to 3.54 million shares worth about $636.1 million.
• Leidos reported better-than-expected Q1 earnings and revenue, posting EPS of $3.13 versus estimates of $2.88 and revenue of $4.40 billion versus expectations of $4.28 billion. The company also raised its FY 2026 guidance to $12.10-$12.50 EPS.
• Despite solid fundamentals, the stock has pulled back significantly, trading at $127.93 versus a 52-week high of $205.77. Analysts still view it favorably overall, with a consensus rating of Moderate Buy and a target price of $191.25.

Geode Capital Management LLC raised its holdings in Leidos Holdings, Inc. (NYSE:LDOS - Free Report) by 1.9% during the fourth quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 3,538,488 shares of the aerospace company's stock after purchasing an additional 64,909 shares during the quarter. Geode Capital Management LLC owned 2.77% of Leidos worth $636,097,000 as of its most recent SEC filing.

Other institutional investors and hedge funds also recently added to or reduced their stakes in the company. Allianz Asset Management GmbH grew its stake in shares of Leidos by 20.1% in the third quarter. Allianz Asset Management GmbH now owns 339,972 shares of the aerospace company's stock valued at $64,241,000 after buying an additional 56,905 shares in the last quarter. New Age Alpha Advisors LLC lifted its holdings in Leidos by 25,505.4% during the 4th quarter. New Age Alpha Advisors LLC now owns 42,505 shares of the aerospace company's stock worth $7,668,000 after buying an additional 42,339 shares during the last quarter. M&T Bank Corp lifted its holdings in Leidos by 2,924.4% during the 4th quarter. M&T Bank Corp now owns 405,181 shares of the aerospace company's stock worth $73,095,000 after buying an additional 391,784 shares during the last quarter. LBP AM SA lifted its holdings in Leidos by 41.7% during the 4th quarter. LBP AM SA now owns 89,597 shares of the aerospace company's stock worth $16,163,000 after buying an additional 26,386 shares during the last quarter. Finally, Hudson Bay Capital Management LP purchased a new stake in Leidos during the 3rd quarter worth about $1,621,000. Hedge funds and other institutional investors own 76.12% of the company's stock.

Leidos Stock Performance

NYSE LDOS opened at $127.93 on Friday. The company has a current ratio of 1.40, a quick ratio of 1.29 and a debt-to-equity ratio of 1.19. The business's 50 day moving average is $144.95 and its two-hundred day moving average is $170.99. Leidos Holdings, Inc. has a 12-month low of $121.20 and a 12-month high of $205.77. The stock has a market capitalization of $16.09 billion, a price-to-earnings ratio of 11.72, a PEG ratio of 1.62 and a beta of 0.56.

Leidos (NYSE:LDOS - Get Free Report) last released its earnings results on Tuesday, May 5th. The aerospace company reported $3.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $2.88 by $0.25. The company had revenue of $4.40 billion for the quarter, compared to analysts' expectations of $4.28 billion. Leidos had a return on equity of 31.92% and a net margin of 8.15%.The firm's quarterly revenue was up 3.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $2.97 EPS. Leidos has set its FY 2026 guidance at 12.100-12.500 EPS. Research analysts expect that Leidos Holdings, Inc. will post 12.25 EPS for the current year.

Leidos Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a dividend of $0.43 per share. The ex-dividend date of this dividend is Monday, June 15th. This represents a $1.72 annualized dividend and a yield of 1.3%. Leidos's payout ratio is currently 15.75%.

Analyst Upgrades and Downgrades

LDOS has been the subject of a number of recent analyst reports. Citigroup decreased their price target on Leidos from $232.00 to $178.00 and set a "buy" rating for the company in a report on Thursday, May 7th. Argus raised Leidos to a "strong-buy" rating in a report on Tuesday, March 31st. Wells Fargo & Company assumed coverage on Leidos in a report on Wednesday, April 1st. They issued an "equal weight" rating and a $165.00 target price for the company. Truist Financial reduced their target price on Leidos from $220.00 to $195.00 and set a "buy" rating for the company in a report on Monday, April 20th. Finally, Jefferies Financial Group set a $185.00 price target on Leidos in a research report on Wednesday, April 8th. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and six have assigned a Hold rating to the company's stock. According to MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $191.25.

Insiders Place Their Bets

In other Leidos news, insider Elizabeth A. Porter sold 2,000 shares of the business's stock in a transaction on Tuesday, April 7th. The stock was sold at an average price of $158.78, for a total transaction of $317,560.00. Following the sale, the insider directly owned 49,476 shares in the company, valued at approximately $7,855,799.28. The trade was a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Stephen May sold 1,484 shares of the business's stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $132.75, for a total value of $197,001.00. Following the sale, the director owned 10,137 shares in the company, valued at approximately $1,345,686.75. The trade was a 12.77% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.77% of the stock is currently owned by insiders.

About Leidos

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos' work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.

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