Stephens Investment Management Group LLC Boosts Holdings in Leonardo DRS, Inc. $DRS

Key Points

• Stephens Investment Management Group boosted its stake in Leonardo DRS by 24.8% in the fourth quarter, adding 202,758 shares to bring its total holdings to 1,020,223 shares worth about $34.8 million.
• Leonardo DRS reported better-than-expected Q1 results, with EPS of $0.26 versus $0.21 expected and revenue of $846 million versus $825.05 million expected. Revenue rose 5.9% year over year, and the company reiterated FY 2026 EPS guidance of 1.260-1.300.
• The company announced a quarterly dividend of $0.09 per share, payable June 2 to shareholders of record on May 19, implying a 0.9% annualized yield. Meanwhile, analysts remain mostly positive, with an average rating of Moderate Buy and an average price target of $52.00.

Stephens Investment Management Group LLC raised its stake in shares of Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) by 24.8% during the fourth quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The institutional investor owned 1,020,223 shares of the company's stock after purchasing an additional 202,758 shares during the quarter. Stephens Investment Management Group LLC owned about 0.38% of Leonardo DRS worth $34,779,000 at the end of the most recent reporting period.

A number of other hedge funds and other institutional investors have also made changes to their positions in DRS. Clearstead Advisors LLC raised its holdings in shares of Leonardo DRS by 564.1% in the third quarter. Clearstead Advisors LLC now owns 684 shares of the company's stock worth $31,000 after buying an additional 581 shares during the last quarter. Allworth Financial LP raised its holdings in shares of Leonardo DRS by 504.1% in the third quarter. Allworth Financial LP now owns 882 shares of the company's stock worth $40,000 after buying an additional 736 shares during the last quarter. UMB Bank n.a. purchased a new position in shares of Leonardo DRS in the third quarter worth $45,000. Pilgrim Partners Asia Pte Ltd purchased a new position in shares of Leonardo DRS in the fourth quarter worth $46,000. Finally, SBI Securities Co. Ltd. raised its holdings in shares of Leonardo DRS by 324.3% in the fourth quarter. SBI Securities Co. Ltd. now owns 1,362 shares of the company's stock worth $46,000 after buying an additional 1,041 shares during the last quarter. Hedge funds and other institutional investors own 18.76% of the company's stock.

Leonardo DRS Stock Performance

DRS opened at $41.50 on Friday. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The company has a market cap of $11.07 billion, a price-to-earnings ratio of 38.79, a PEG ratio of 3.01 and a beta of 0.29. Leonardo DRS, Inc. has a 52-week low of $32.43 and a 52-week high of $49.31. The firm's fifty day simple moving average is $44.29 and its two-hundred day simple moving average is $39.87.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its quarterly earnings data 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. The business had revenue of $846.00 million for the quarter, compared to the consensus estimate of $825.05 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The company's revenue was up 5.9% compared to the same quarter last year. During the same period last year, the firm posted $0.20 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Equities analysts anticipate that Leonardo DRS, Inc. will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The business 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. This represents a $0.36 annualized dividend and a yield of 0.9%. The ex-dividend date of this dividend is Tuesday, May 19th. Leonardo DRS's dividend payout ratio (DPR) is presently 33.64%.

Analyst Upgrades and Downgrades

A number of research analysts have issued reports on the stock. Morgan Stanley set a $47.00 price target on shares of Leonardo DRS in a report on Wednesday, February 25th. Weiss Ratings cut shares of Leonardo DRS from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday, May 6th. Truist Financial raised shares of Leonardo DRS to a "strong-buy" rating in a report on Friday, May 1st. Canaccord Genuity Group raised their price target on shares of Leonardo DRS from $52.00 to $54.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Finally, Bank of America increased their price objective on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, March 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have assigned a Hold rating to the company. According to data from MarketBeat, Leonardo DRS presently has an average rating of "Moderate Buy" and an average price target of $52.00.

Insider Buying and Selling at Leonardo DRS

In other Leonardo DRS news, EVP Sally Wallace sold 28,960 shares of the stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $46.35, for a total transaction of $1,342,296.00. Following the transaction, the executive vice president directly owned 58,353 shares of the company's stock, valued at $2,704,661.55. This trade represents a 33.17% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 16,330 shares of the stock in a transaction on Monday, March 16th. The shares were sold at an average price of $45.27, for a total transaction of $739,259.10. Following the transaction, the chief financial officer directly owned 26,622 shares in the company, valued at approximately $1,205,177.94. The trade was a 38.02% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 64,361 shares of company stock valued at $2,944,837 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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