Munro Partners Raises Holdings in Leonardo DRS, Inc. $DRS

Key Points

• Munro Partners increased its stake in Leonardo DRS by 92.6% in the fourth quarter, adding 157,750 shares and bringing its total holding to 328,095 shares worth about $11.2 million.
• Leonardo DRS beat earnings and revenue estimates in its latest quarterly report, posting EPS of $0.26 versus $0.21 expected and revenue of $846 million versus $825 million expected.
• The company remains favored by analysts, with a Moderate Buy consensus and a $52.80 price target, while it also paid a quarterly dividend of $0.09 per share for a 0.8% annual yield.

Munro Partners grew its position in Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) by 92.6% in the 4th quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The firm owned 328,095 shares of the company's stock after buying an additional 157,750 shares during the quarter. Munro Partners owned 0.12% of Leonardo DRS worth $11,185,000 at the end of the most recent reporting period.

Several other hedge funds have also made changes to their positions in the company. Squarepoint Ops LLC lifted its holdings in shares of Leonardo DRS by 296.6% in the 4th quarter. Squarepoint Ops LLC now owns 451,236 shares of the company's stock worth $15,383,000 after buying an additional 337,450 shares during the period. Verition Fund Management LLC lifted its holdings in shares of Leonardo DRS by 42.9% in the 4th quarter. Verition Fund Management LLC now owns 12,392 shares of the company's stock worth $422,000 after buying an additional 3,721 shares during the period. Mariner LLC lifted its holdings in shares of Leonardo DRS by 219.3% in the 4th quarter. Mariner LLC now owns 68,802 shares of the company's stock worth $2,345,000 after buying an additional 47,251 shares during the period. Fieldview Capital Management LLC purchased a new stake in shares of Leonardo DRS in the 4th quarter worth $1,106,000. Finally, Kennedy Capital Management LLC lifted its holdings in shares of Leonardo DRS by 0.4% in the 4th quarter. Kennedy Capital Management LLC now owns 100,366 shares of the company's stock worth $3,421,000 after buying an additional 431 shares during the period. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

Leonardo DRS Trading Down 3.8%

Shares of NASDAQ:DRS opened at $46.68 on Tuesday. The business's 50-day moving average is $44.60 and its 200 day moving average is $41.47. Leonardo DRS, Inc. has a 1 year low of $32.43 and a 1 year high of $50.59. The firm has a market capitalization of $12.45 billion, a P/E ratio of 43.63, a P/E/G ratio of 3.50 and a beta of 0.34. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.86 and a quick ratio of 1.52.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.05. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The company had revenue of $846.00 million for the quarter, compared to analyst estimates of $825.05 million. During the same period in the prior year, the company posted $0.20 EPS. The firm's quarterly 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, research analysts predict that Leonardo DRS, Inc. will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS's dividend payout ratio is currently 33.64%.

Analyst Ratings Changes

DRS has been the subject of several recent research reports. Truist Financial raised Leonardo DRS to a "strong-buy" rating in a research report on Friday, May 1st. Morgan Stanley set a $47.00 price target on Leonardo DRS in a research report on Wednesday, February 25th. Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Sunday, May 10th. Weiss Ratings raised Leonardo DRS from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, June 5th. Finally, Bank of America boosted their price target on Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, March 25th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and three have issued a Hold rating to the company's stock. According to data from MarketBeat, Leonardo DRS presently has a consensus rating of "Moderate Buy" and a consensus price target of $52.80.

Insider Activity at Leonardo DRS

In other news, EVP Sally Wallace sold 28,960 shares of the stock in a transaction dated Thursday, April 2nd. The stock was 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 of the company's stock, valued at approximately $2,704,661.55. This represents a 33.17% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, 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 transaction, the senior vice president directly 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 disclosure for this sale is available in the SEC filing. Insiders sold a total of 61,059 shares of company stock worth $2,816,977 over the last ninety days. Corporate insiders own 0.25% of the company's stock.

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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