Union Square Park Capital Management LLC Makes New $1.34 Million Investment in Leonardo DRS, Inc. $DRS

Key Points

• Union Square Park Capital Management bought a new stake in Leonardo DRS, acquiring 30,000 shares worth about $1.34 million in the first quarter. Several other institutional investors also increased or initiated positions, and institutions now own 18.76% of the stock.
• Leonardo DRS reported better-than-expected quarterly results, posting EPS of $0.26 versus $0.21 expected and revenue of $846 million versus $825.05 million expected. The company also raised its FY 2026 guidance to $1.26-$1.30 EPS.
• The stock has drawn mixed signals from insiders and analysts: insiders sold shares over the past three months, while analysts remain generally constructive with an average Moderate Buy rating and a target price of $53.75.

Union Square Park Capital Management LLC acquired a new stake in shares of Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) during the first quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor acquired 30,000 shares of the company's stock, valued at approximately $1,336,000.

Several other institutional investors have also modified their holdings of the stock. Gabelli Funds LLC purchased a new position in shares of Leonardo DRS in the 1st quarter worth approximately $303,000. Sei Investments Co. boosted its stake in Leonardo DRS by 73.6% during the first quarter. Sei Investments Co. now owns 166,916 shares of the company's stock worth $7,431,000 after buying an additional 70,757 shares during the period. Lido Advisors LLC purchased a new position in Leonardo DRS during the first quarter worth $300,000. Militia Capital Management LLC bought a new position in Leonardo DRS during the first quarter valued at $2,328,000. Finally, PNC Financial Services Group Inc. raised its stake in shares of Leonardo DRS by 339.8% in the first quarter. PNC Financial Services Group Inc. now owns 5,387 shares of the company's stock valued at $240,000 after acquiring an additional 4,162 shares during the period. 18.76% of the stock is owned by institutional investors.

Leonardo DRS Stock Down 0.1%

NASDAQ:DRS opened at $48.10 on Friday. The company has a market cap of $12.83 billion, a price-to-earnings ratio of 44.95, a price-to-earnings-growth ratio of 3.47 and a beta of 0.36. Leonardo DRS, Inc. has a twelve month low of $32.43 and a twelve month high of $50.59. 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 stock has a fifty day simple moving average of $45.35 and a 200-day simple moving average of $43.60.

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

Leonardo DRS Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were paid a $0.09 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.36 annualized dividend and a yield of 0.7%. Leonardo DRS's dividend payout ratio is 33.64%.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on DRS. Canaccord Genuity Group raised their target price 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. Truist Financial raised shares of Leonardo DRS to a "strong-buy" rating in a research report on Friday, May 1st. Wall Street Zen raised shares of Leonardo DRS from a "hold" rating to a "buy" rating in a research note on Sunday, May 10th. Finally, Weiss Ratings upgraded Leonardo DRS from a "hold (c)" rating to a "hold (c+)" rating in a research report on Thursday. One equities research analyst has rated the stock with a Strong Buy rating, two have assigned a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average target price of $53.75.

Insider Activity at Leonardo DRS

In other news, SVP Pamela Morrow sold 11,545 shares of the stock in a transaction on Wednesday, May 27th. The stock was sold at an average price of $45.13, for a total transaction of $521,025.85. Following the transaction, the senior vice president owned 10,551 shares of the company's stock, valued at approximately $476,166.63. This represents a 52.25% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Michael Dippold sold 8,318 shares of the firm's stock in a transaction on Monday, June 8th. The shares were sold at an average price of $46.48, for a total value of $386,620.64. Following the transaction, the chief financial officer owned 55,460 shares in the company, valued at approximately $2,577,780.80. This represents a 13.04% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 65,364 shares of company stock worth $2,994,785 over the last three months. 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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