Leidos (NYSE:LDOS) Hits New 52-Week Low - Should You Sell?

Key Points

• Leidos shares fell to a new 52-week low, trading as low as $119.91 after a 5.1% drop, with the stock well below its 50-day and 200-day moving averages.
• Despite the weak stock performance, the company’s latest quarterly results beat expectations, with EPS of $3.13 versus $2.88 expected and revenue of $4.40 billion versus $4.28 billion estimated.
• Analyst sentiment remains mixed but constructive overall, with a consensus Moderate Buy rating and an average price target of $187.50, even as some firms cut targets recently.

Leidos Holdings, Inc. (NYSE:LDOS - Get Free Report)'s share price reached a new 52-week low during trading on Monday . The stock traded as low as $119.91 and last traded at $117.6330, with a volume of 92887 shares changing hands. The stock had previously closed at $122.16.

Analysts Set New Price Targets

LDOS has been the subject of several analyst reports. Robert W. Baird dropped their target price on Leidos from $215.00 to $195.00 and set a "neutral" rating for the company in a research note on Wednesday, February 18th. Argus upgraded Leidos to a "strong-buy" rating in a research note on Tuesday, March 31st. Wells Fargo & Company initiated coverage on Leidos in a research note on Wednesday, April 1st. They issued an "equal weight" rating and a $165.00 target price for the company. Citigroup dropped their target price on Leidos from $232.00 to $178.00 and set a "buy" rating for the company in a research note on Thursday, May 7th. Finally, Wall Street Zen upgraded Leidos from a "hold" rating to a "buy" rating in a research note on Sunday. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and seven have issued a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus price target of $187.50.

Leidos Trading Down 5.1%

The firm has a market capitalization of $14.58 billion, a price-to-earnings ratio of 10.61, a P/E/G ratio of 1.55 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 business has a fifty day moving average price of $137.96 and a 200 day moving average price of $166.17.

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

Leidos Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, June 30th. Investors of record on Monday, June 15th will be issued a $0.43 dividend. This represents a $1.72 annualized dividend and a yield of 1.5%. The ex-dividend date is Monday, June 15th. Leidos's dividend payout ratio is currently 15.75%.

Insider Activity

In other news, Director Gary Stephen May sold 1,484 shares of the company's stock in a transaction dated Thursday, May 7th. The stock was sold at an average price of $132.75, for a total value of $197,001.00. Following the completion of the sale, the director owned 10,137 shares of the company's stock, valued at $1,345,686.75. This represents a 12.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, insider Elizabeth A. Porter sold 2,000 shares of the company's stock in a transaction dated Tuesday, April 7th. The stock was sold at an average price of $158.78, for a total value 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. The trade was a 3.89% 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. 0.77% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Leidos

Institutional investors and hedge funds have recently modified their holdings of the stock. Hantz Financial Services Inc. boosted 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 buying an additional 72 shares during the period. JFS Wealth Advisors LLC grew its stake 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 in the last quarter. Hilton Head Capital Partners LLC acquired a new stake in shares of Leidos during the fourth quarter valued at about $28,000. Rakuten Securities Inc. grew its stake in shares of Leidos by 110.5% during the fourth quarter. Rakuten Securities Inc. now owns 160 shares of the aerospace company's stock valued at $29,000 after acquiring an additional 84 shares in the last quarter. Finally, Longview Financial Advisors Inc. acquired a new stake in shares of Leidos during the first quarter valued at about $26,000. Hedge funds and other institutional investors 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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