Leidos (NYSE:LDOS) Stock Price Down 7.1% - Here's Why

Key Points

• Shares plunged 7.1% to about $138 on higher-than-normal volume and sit below their 50- and 200-day moving averages, indicating short-term technical selling and profit-taking despite the quarter’s results.
• Fundamentals were strong: Leidos beat Q1 estimates (adjusted EPS $3.13, revenue $4.40B), reported a backlog of roughly $48.4B, and raised FY2026 guidance (EPS $12.10–$12.50, revenue $18.0–$18.4B).
• Wall Street sentiment is broadly constructive (consensus rating “Moderate Buy” with a ~$202.82 target), while valuation appears modest (P/E ~12.3) and the company pays a quarterly dividend of $0.43 (~1.3% yield).

Leidos Holdings, Inc. (NYSE:LDOS - Get Free Report)'s stock price was down 7.1% on Tuesday . The company traded as low as $139.85 and last traded at $138.23. Approximately 1,206,395 shares changed hands during mid-day trading, an increase of 13% from the average daily volume of 1,070,001 shares. The stock had previously closed at $148.81.

Key Stories Impacting Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q1 beat — Leidos reported Q1 adjusted EPS of $3.13 and revenue of $4.40B, both above consensus; operating cash flow and non‑GAAP metrics were solid, supporting near-term fundamentals. Read More.
• Positive Sentiment: Backlog and contract momentum — Backlog rose to about $48.4B, driven by intelligence, energy infrastructure and air traffic control demand, highlighting durable government/infra revenue visibility. Read More.
• Positive Sentiment: Raised FY2026 guidance — Leidos lifted its full‑year revenue and EPS outlook (EPS guide $12.10–$12.50; revenue $18.0–$18.4B), reflecting confidence in IT and intel services demand. Read More.
• Neutral Sentiment: Guidance context — The EPS range centers near Street estimates (consensus ~12.3); while raised, the range’s midpoint is close to expectations, which may temper upside surprise. Read More.
• Neutral Sentiment: Management commentary — The Q1 earnings call transcript provides detail on contract timing, margin drivers and investment priorities; listen for contract phasing and margin cadence that will influence future quarters. Read More.
• Negative Sentiment: Market reaction and technicals — Despite fundamental beats, shares are down amid high volume; price sits below the 50‑ and 200‑day moving averages, suggesting short‑term technical selling and profit‑taking. (Company filings and market data referenced above.)

Analyst Upgrades and Downgrades

A number of analysts have weighed in on LDOS shares. Wall Street Zen upgraded Leidos from a "hold" rating to a "buy" rating in a research report on Saturday, April 18th. Royal Bank Of Canada lowered their price target on Leidos from $230.00 to $215.00 and set an "outperform" rating on the stock in a research report on Wednesday, February 18th. Wells Fargo & Company started coverage on Leidos in a research report on Wednesday, April 1st. They issued an "equal weight" rating and a $165.00 price target on the stock. Stifel Nicolaus lowered their price target on Leidos from $220.00 to $205.00 and set a "hold" rating on the stock in a research report on Wednesday, February 18th. Finally, Truist Financial lowered their target price on Leidos from $220.00 to $195.00 and set a "buy" rating for the company in a research note on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $202.82.

Leidos Price Performance

The stock has a fifty day moving average of $162.47 and a 200-day moving average of $179.28. The company has a quick ratio of 1.58, a current ratio of 1.70 and a debt-to-equity ratio of 0.93. The firm has a market capitalization of $17.31 billion, a P/E ratio of 12.33, a PEG ratio of 1.90 and a beta of 0.56.

Leidos (NYSE:LDOS - Get Free Report) last released its quarterly earnings results on Monday, May 4th. The aerospace company reported $3.13 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $2.88 by $0.25. The business had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.28 billion. Leidos had a return on equity of 32.95% and a net margin of 8.43%.The firm's revenue for the quarter was up 3.7% compared to the same quarter last year. During the same period in the previous year, the business posted $2.97 earnings per share. Equities analysts predict that Leidos Holdings, Inc. will post 12.26 EPS for the current fiscal year.

Leidos Dividend Announcement

The company 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. The ex-dividend date is Monday, June 15th. This represents a $1.72 annualized dividend and a yield of 1.3%. Leidos's dividend payout ratio (DPR) is currently 15.45%.

Insider Transactions at Leidos

In related news, insider Elizabeth A. Porter sold 2,000 shares of the firm'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 transaction, the insider owned 49,476 shares in the company, valued at $7,855,799.28. This trade represents a 3.89% decrease in their ownership of the stock. The transaction was disclosed in a legal filing 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. 0.77% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leidos

Several hedge funds have recently added to or reduced their stakes in LDOS. Focus Partners Wealth boosted its holdings in Leidos by 46.5% in the first quarter. Focus Partners Wealth now owns 3,073 shares of the aerospace company's stock valued at $415,000 after acquiring an additional 976 shares during the last quarter. Marshall Wace LLP lifted its stake in Leidos by 86.3% in the second quarter. Marshall Wace LLP now owns 14,250 shares of the aerospace company's stock valued at $2,248,000 after buying an additional 6,600 shares during the period. Cresset Asset Management LLC lifted its stake in Leidos by 2.7% in the second quarter. Cresset Asset Management LLC now owns 3,399 shares of the aerospace company's stock valued at $536,000 after buying an additional 90 shares during the period. Cerity Partners LLC lifted its stake in Leidos by 20.2% in the second quarter. Cerity Partners LLC now owns 41,405 shares of the aerospace company's stock valued at $6,532,000 after buying an additional 6,962 shares during the period. Finally, Natixis lifted its stake in Leidos by 222.3% in the second quarter. Natixis now owns 8,155 shares of the aerospace company's stock valued at $1,287,000 after buying an additional 5,625 shares during the period. 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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