Leidos (NYSE:LDOS) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Leidos from “hold” to “buy,” though the broader analyst view remains cautious with a consensus rating of “hold” and an average price target of $177.92.
• Leidos reported better-than-expected quarterly results, posting EPS of $3.13 versus estimates of $2.88 and revenue of $4.40 billion versus $4.28 billion expected. The company also raised its FY2026 EPS guidance to 12.10-12.50.
• The stock has been under pressure, with shares opening at $100.45, near the 52-week low of $99.53 and well below the 52-week high of $205.77. Recent insider sales were also disclosed, including transactions by an executive and a director.

Leidos (NYSE:LDOS - Get Free Report) was upgraded by investment analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued on Tuesday.

Other analysts have also recently issued research reports about the company. Truist Financial lowered their price target on Leidos from $220.00 to $195.00 and set a "buy" rating for the company in a research report on Monday, April 20th. Jefferies Financial Group downgraded Leidos from a "buy" rating to a "hold" rating and decreased their target price for the stock from $185.00 to $140.00 in a report on Wednesday, June 3rd. Royal Bank Of Canada dropped their target price on Leidos from $215.00 to $180.00 and set an "outperform" rating on the stock in a research report on Wednesday, May 6th. BNP Paribas Exane assumed coverage on shares of Leidos in a report on Wednesday, May 27th. They issued an "outperform" rating and a $165.00 price target on the stock. Finally, Weiss Ratings lowered shares of Leidos from a "hold (c+)" rating to a "hold (c)" rating in a research report on Monday, June 8th. One research analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and nine have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of "Hold" and an average price target of $177.92.

Leidos Stock Performance

LDOS opened at $100.45 on Tuesday. The company has a market cap of $12.64 billion, a P/E ratio of 9.20, a price-to-earnings-growth ratio of 1.50 and a beta of 0.51. The company has a quick ratio of 1.29, a current ratio of 1.40 and a debt-to-equity ratio of 1.19. The firm's 50-day moving average price is $126.66 and its 200-day moving average price is $159.77. Leidos has a 52-week low of $99.53 and a 52-week high of $205.77.

Leidos (NYSE:LDOS - Get Free Report) last released its earnings results on Tuesday, May 5th. The aerospace company reported $3.13 EPS for the quarter, topping analysts' consensus estimates of $2.88 by $0.25. Leidos had a net margin of 8.15% and a return on equity of 31.92%. The company had revenue of $4.40 billion during the quarter, compared to analysts' expectations of $4.28 billion. During the same period last year, the business earned $2.97 EPS. Leidos's revenue for the quarter was up 3.7% on a year-over-year basis. Leidos has set its FY 2026 guidance at 12.100-12.500 EPS. As a group, equities analysts anticipate that Leidos will post 12.26 EPS for the current fiscal year.

Insider Transactions at Leidos

In other Leidos news, insider Elizabeth A. Porter sold 2,000 shares of the business's stock in a transaction that occurred on 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 transaction, the insider directly owned 49,476 shares of the company's stock, valued at approximately $7,855,799.28. The trade was a 3.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Gary Stephen May sold 1,484 shares of the company's stock in a transaction that occurred on 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 in the company, valued at approximately $1,345,686.75. This represents a 12.77% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.77% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Leidos

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

About Leidos

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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