Vanguard Group Inc. Purchases 34,858 Shares of Leonardo DRS, Inc. $DRS

Key Points

• Vanguard increased its stake in Leonardo DRS by 34,858 shares in the fourth quarter, bringing its total holding to 7.7 million shares worth about $263.1 million.
• Leonardo DRS reported strong quarterly results, with earnings of $0.26 per share versus $0.21 expected and revenue of $846 million, up 5.9% year over year.
• Analyst sentiment remains mixed but constructive: the stock has a Moderate Buy consensus with a $52 average price target, even as some firms downgraded it to hold while others raised ratings.

Vanguard Group Inc. lifted its position in shares of Leonardo DRS, Inc. (NASDAQ:DRS - Free Report) by 0.5% during the 4th quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission. The fund owned 7,717,551 shares of the company's stock after purchasing an additional 34,858 shares during the period. Vanguard Group Inc. owned about 2.90% of Leonardo DRS worth $263,091,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors also recently made changes to their positions in the company. Clearstead Advisors LLC lifted its stake 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 acquiring an additional 581 shares during the period. Allworth Financial LP lifted its stake 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 acquiring an additional 736 shares during the period. UMB Bank n.a. acquired a new position in shares of Leonardo DRS in the third quarter worth approximately $45,000. PNC Financial Services Group Inc. lifted its stake in shares of Leonardo DRS by 435.0% in the third quarter. PNC Financial Services Group Inc. now owns 1,161 shares of the company's stock worth $53,000 after acquiring an additional 944 shares during the period. Finally, EverSource Wealth Advisors LLC lifted its stake in shares of Leonardo DRS by 176.3% in the third quarter. EverSource Wealth Advisors LLC now owns 1,210 shares of the company's stock worth $55,000 after acquiring an additional 772 shares during the period. 18.76% of the stock is owned by institutional investors and hedge funds.

Insider Transactions at Leonardo DRS

In other news, CFO Michael Dippold sold 16,330 shares of the company's stock in a transaction that occurred on Monday, March 16th. The stock was 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 of the company's stock, valued at $1,205,177.94. This represents a 38.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Sally Wallace sold 28,960 shares of the company's stock in a transaction that occurred on 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 in the company, valued at $2,704,661.55. The trade was a 33.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 64,361 shares of company stock valued at $2,944,837 over the last ninety days. 0.25% of the stock is owned by company insiders.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on the company. Wall Street Zen lowered Leonardo DRS from a "buy" rating to a "hold" rating in a research note on Saturday, May 2nd. Canaccord Genuity Group boosted their price target on Leonardo DRS from $52.00 to $54.00 and gave the company a "buy" rating in a research note on Wednesday. Truist Financial raised Leonardo DRS to a "strong-buy" rating in a research note on Friday, May 1st. Morgan Stanley set a $47.00 price target on Leonardo DRS in a research note on Wednesday, February 25th. Finally, Weiss Ratings lowered Leonardo DRS from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday. One research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the company. According to MarketBeat.com, Leonardo DRS has an average rating of "Moderate Buy" and a consensus price target of $52.00.

Leonardo DRS Price Performance

Shares of DRS opened at $41.36 on Friday. Leonardo DRS, Inc. has a 52-week low of $32.43 and a 52-week high of $49.31. The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.60 and a current ratio of 1.86. The business's 50 day moving average price is $44.58 and its two-hundred day moving average price is $39.79. The firm has a market cap of $11.03 billion, a PE ratio of 38.65, a price-to-earnings-growth ratio of 3.01 and a beta of 0.29.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last issued its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share for the quarter, topping analysts' consensus estimates 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 firm earned $0.20 earnings per share. Leonardo DRS's revenue for the quarter was up 5.9% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, equities analysts anticipate that Leonardo DRS, Inc. will post 1.29 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. Stockholders of record on Tuesday, May 19th will be given a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend is Tuesday, May 19th. Leonardo DRS's dividend payout ratio is presently 33.64%.

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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