Leonardo DRS, Inc. $DRS Holdings Raised by Swedbank AB

Key Points

• Swedbank AB sharply increased its stake in Leonardo DRS by 1,026% in the fourth quarter, ending with 96,205 shares valued at about $3.28 million.
• Leonardo DRS reported better-than-expected Q1 earnings, posting EPS of $0.26 versus the $0.21 estimate, while revenue of $846 million also topped forecasts and rose 5.9% year over year.
• The company has seen significant insider selling in recent months, including sales by EVP Sally Wallace and SVP Pamela Morrow, even as analysts maintain a Moderate Buy consensus with a $52 average price target.

Swedbank AB boosted its stake in Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) by 1,026.0% in the fourth quarter, according to the company in its most recent filing with the Securities & Exchange Commission. The institutional investor owned 96,205 shares of the company's stock after buying an additional 87,661 shares during the quarter. Swedbank AB's holdings in Leonardo DRS were worth $3,280,000 at the end of the most recent quarter.

A number of other hedge funds and other institutional investors also recently added to or reduced their stakes in DRS. First Trust Advisors LP lifted its position in Leonardo DRS by 116.8% in the 3rd quarter. First Trust Advisors LP now owns 3,661,214 shares of the company's stock worth $166,219,000 after buying an additional 1,972,596 shares in the last quarter. Millennium Management LLC lifted its position in Leonardo DRS by 152.1% in the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company's stock worth $80,639,000 after buying an additional 1,071,708 shares in the last quarter. AQR Capital Management LLC lifted its position in Leonardo DRS by 528.6% in the 3rd quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company's stock worth $56,000,000 after buying an additional 1,070,870 shares in the last quarter. UBS Group AG lifted its position in Leonardo DRS by 566.2% in the 3rd quarter. UBS Group AG now owns 711,588 shares of the company's stock worth $32,306,000 after buying an additional 604,783 shares in the last quarter. Finally, Bank of America Corp DE lifted its position in Leonardo DRS by 64.6% in the 2nd quarter. Bank of America Corp DE now owns 1,251,415 shares of the company's stock worth $58,166,000 after buying an additional 491,158 shares in the last quarter. Hedge funds and other institutional investors own 18.76% of the company's stock.

Insider Activity

In related news, EVP Sally Wallace sold 28,960 shares of the firm's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total value of $1,342,296.00. Following the transaction, the executive vice president directly owned 58,353 shares in the company, valued at approximately $2,704,661.55. This trade represents a 33.17% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 12,000 shares of the firm's stock in a transaction on Tuesday, March 3rd. The stock was sold at an average price of $45.20, for a total transaction of $542,400.00. Following the completion of the sale, the senior vice president owned 6,494 shares in the company, valued at $293,528.80. This represents a 64.89% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last 90 days, insiders have sold 64,361 shares of company stock valued at $2,944,837. 0.25% of the stock is owned by corporate insiders.

Leonardo DRS Stock Performance

NASDAQ:DRS opened at $45.35 on Thursday. Leonardo DRS, Inc. has a 1 year low of $32.43 and a 1 year high of $49.31. The firm's fifty day simple moving average is $44.03 and its 200 day simple moving average is $40.28. The company has a current ratio of 1.86, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. The firm has a market capitalization of $12.10 billion, a PE ratio of 42.38, a PEG ratio of 3.30 and a beta of 0.29.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share (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 for the quarter, compared to analyst estimates of $825.05 million. During the same period last year, the business posted $0.20 EPS. Leonardo DRS's revenue was up 5.9% compared to the same quarter last year. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, sell-side analysts anticipate that Leonardo DRS, Inc. will post 1.3 EPS for the current year.

Leonardo DRS Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th will be paid a $0.09 dividend. The ex-dividend date is Tuesday, May 19th. This represents a $0.36 dividend on an annualized basis and a yield of 0.8%. Leonardo DRS's dividend payout ratio (DPR) is presently 33.64%.

Analyst Ratings Changes

DRS has been the subject of a number of research analyst reports. Morgan Stanley set a $47.00 target price 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 report on Sunday, May 10th. Bank of America raised their price target on shares of Leonardo DRS from $50.00 to $55.00 and gave the company a "buy" rating in a report on Wednesday, March 25th. Weiss Ratings downgraded shares of Leonardo DRS from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday, May 20th. Finally, Canaccord Genuity Group raised their price target on shares of Leonardo DRS from $52.00 to $54.00 and gave the company a "buy" rating in a report on Wednesday, May 6th. One research analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $52.00.

About Leonardo DRS

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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