Leidos (NYSE:LDOS) Cut to Hold at Wall Street Zen

Key Points

• Wall Street Zen downgraded Leidos from buy to hold, adding to a recent wave of mixed analyst sentiment on the stock.
• Several firms have cut their views or price targets recently, including Jefferies lowering its target to $140 and Bank of America reducing its target to $125; the consensus rating is now Hold.
• Leidos shares were trading near $107.16, close to their 52-week low, even though the company recently beat quarterly earnings and revenue estimates and issued FY2026 EPS guidance of $12.10–$12.50.

Leidos (NYSE:LDOS - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a report issued on Monday.

LDOS has been the subject of several other research reports. Argus upgraded shares of Leidos to a "strong-buy" rating in a research report on Tuesday, March 31st. Jefferies Financial Group downgraded Leidos from a "buy" rating to a "hold" rating and reduced their price objective for the stock from $185.00 to $140.00 in a research report on Wednesday, June 3rd. Citigroup lowered Leidos from a "buy" rating to a "neutral" rating in a report on Wednesday. Weiss Ratings cut Leidos from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, June 8th. Finally, Bank of America reaffirmed a "neutral" rating and set a $125.00 target price (down from $200.00) on shares of Leidos in a research note on Wednesday, June 17th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and nine have issued a Hold rating to the company's stock. According to data from MarketBeat, Leidos currently has an average rating of "Hold" and an average target price of $177.92.

Leidos Stock Performance

LDOS stock opened at $107.16 on Monday. Leidos has a 1 year low of $106.08 and a 1 year high of $205.77. The stock has a market capitalization of $13.48 billion, a price-to-earnings ratio of 9.81, a PEG ratio of 1.58 and a beta of 0.51. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.29 and a current ratio of 1.40. The stock's fifty day moving average is $133.08 and its two-hundred day moving average is $163.35.

Leidos (NYSE:LDOS - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The aerospace company reported $3.13 EPS for the quarter, topping the consensus estimate of $2.88 by $0.25. Leidos had a net margin of 8.15% and a return on equity of 31.92%. The business had revenue of $4.40 billion during the quarter, compared to analyst estimates of $4.28 billion. During the same quarter in the prior year, the firm earned $2.97 earnings per share. The company's quarterly revenue was up 3.7% on a year-over-year basis. Leidos has set its FY 2026 guidance at 12.100-12.500 EPS. On average, research analysts predict that Leidos will post 12.25 EPS for the current year.

Insider Buying and Selling

In related news, insider Elizabeth A. Porter sold 2,000 shares of the stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $158.78, for a total transaction of $317,560.00. Following the completion of the sale, the insider directly owned 49,476 shares of the company's stock, valued at $7,855,799.28. This represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Stephen May sold 1,484 shares of the stock in a transaction that occurred on Thursday, May 7th. The shares were sold at an average price of $132.75, for a total transaction of $197,001.00. Following the sale, the director directly owned 10,137 shares of the company's stock, valued at approximately $1,345,686.75. This represents a 12.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 0.77% of the stock is owned by insiders.

Hedge Funds Weigh In On Leidos

Hedge funds and other institutional investors have recently modified their holdings of the stock. Hantz Financial Services Inc. increased its position in shares of Leidos by 94.7% in the fourth quarter. Hantz Financial Services Inc. now owns 148 shares of the aerospace company's stock worth $27,000 after acquiring an additional 72 shares in the last quarter. JFS Wealth Advisors LLC raised its holdings in shares of Leidos by 77.6% during the fourth quarter. JFS Wealth Advisors LLC now owns 151 shares of the aerospace company's stock valued at $27,000 after acquiring an additional 66 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Leidos in the 4th quarter valued at approximately $28,000. Rakuten Securities Inc. boosted its stake in Leidos by 110.5% in the 4th quarter. Rakuten Securities Inc. now owns 160 shares of the aerospace company's stock worth $29,000 after purchasing an additional 84 shares during the period. Finally, Longview Financial Advisors Inc. acquired a new position in Leidos in the 1st quarter worth approximately $26,000. Institutional investors and hedge funds own 76.12% of the company's stock.

Leidos Company Profile

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos' work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.

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