Leonardo DRS, Inc. (NASDAQ:DRS) Given Average Rating of "Moderate Buy" by Brokerages

Key Points

• Leonardo DRS has a consensus analyst rating of “Moderate Buy” from eight brokerages, with an average 12-month price target of $52.00.
• The company reported better-than-expected Q1 earnings, posting EPS of $0.26 versus the $0.21 estimate and revenue of $846 million versus $825.05 million expected, with revenue up 5.9% year over year.
• Leonardo DRS also declared a quarterly dividend of $0.09 per share, payable June 2, while insiders have recently sold shares and institutions own 18.76% of the stock.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) has earned a consensus recommendation of "Moderate Buy" from the eight brokerages that are presently covering the stock, Marketbeat.com reports. Four investment analysts have rated the stock with a hold rating, three have assigned a buy rating and one has issued a strong buy rating on the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $52.00.

A number of brokerages have issued reports on DRS. Morgan Stanley set a $47.00 target price on Leonardo DRS in a research report on Wednesday, February 25th. Bank of America boosted their price objective on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, March 25th. Wall Street Zen raised shares of Leonardo DRS from a "hold" rating to a "buy" rating in a report on Sunday. Truist Financial upgraded shares of Leonardo DRS to a "strong-buy" rating in a research note on Friday, May 1st. Finally, Canaccord Genuity Group lifted their target price on shares of Leonardo DRS from $52.00 to $54.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th.

Leonardo DRS Price Performance

NASDAQ DRS opened at $41.49 on Tuesday. Leonardo DRS has a fifty-two week low of $32.43 and a fifty-two week high of $49.31. The stock's 50-day moving average is $44.53 and its two-hundred day moving average is $39.80. The firm has a market cap of $11.07 billion, a P/E ratio of 38.78, a price-to-earnings-growth ratio of 3.01 and a beta of 0.29. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.86 and a quick ratio of 1.52.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, topping the consensus estimate 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 during the quarter, compared to the consensus estimate of $825.05 million. During the same quarter in the prior year, the company posted $0.20 EPS. The firm's revenue 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, analysts anticipate that Leonardo DRS will post 1.29 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 19th will be paid a $0.09 dividend. The ex-dividend date is Tuesday, May 19th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. Leonardo DRS's payout ratio is presently 33.64%.

Insider Buying and Selling

In related news, EVP Sally Wallace sold 28,960 shares of the stock in a transaction that occurred on Thursday, April 2nd. The stock was sold at an average price of $46.35, for a total transaction of $1,342,296.00. Following the completion of the sale, the executive vice president owned 58,353 shares in the company, valued at $2,704,661.55. This represents a 33.17% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 16,330 shares of the firm's stock in a transaction that occurred on Monday, March 16th. The shares were sold at an average price of $45.27, for a total value of $739,259.10. Following the completion of the sale, the chief financial officer directly owned 26,622 shares in the company, valued at $1,205,177.94. This trade represents a 38.02% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 64,361 shares of company stock valued at $2,944,837. Insiders own 0.25% of the company's stock.

Hedge Funds Weigh In On Leonardo DRS

A number of institutional investors and hedge funds have recently bought and sold shares of DRS. Quarry LP boosted its holdings in Leonardo DRS by 7,041.7% in the 4th quarter. Quarry LP now owns 857 shares of the company's stock valued at $29,000 after purchasing an additional 845 shares during the period. Clearstead Advisors LLC raised its position in shares of Leonardo DRS by 564.1% during the third quarter. Clearstead Advisors LLC now owns 684 shares of the company's stock valued at $31,000 after buying an additional 581 shares during the last quarter. Leonteq Securities AG bought a new stake in shares of Leonardo DRS in the fourth quarter valued at about $34,000. Allworth Financial LP grew its position in Leonardo DRS by 504.1% during the third quarter. Allworth Financial LP now owns 882 shares of the company's stock worth $40,000 after buying an additional 736 shares in the last quarter. Finally, Fifth Third Bancorp acquired a new stake in Leonardo DRS during the first quarter worth about $41,000. Institutional investors own 18.76% of the company's stock.

Leonardo DRS Company Profile

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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