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

Key Points

• Leonardo DRS has a consensus analyst rating of “Moderate Buy”, with six firms covering the stock and an average 12-month price target of $53.75.
• The company reported better-than-expected quarterly results, posting EPS of $0.26 versus the $0.21 estimate and revenue of $846 million versus $825.05 million expected.
• Recent insider selling included stock sales by the EVP and CFO, while institutional ownership remains significant at 18.76% of shares.

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the six research firms that are currently covering the stock, MarketBeat.com reports. Three equities research analysts have rated the stock with a hold rating, two have given a buy rating and one has assigned a strong buy rating to the company. The average twelve-month target price among brokerages that have issued ratings on the stock in the last year is $53.75.

Several research firms have issued reports on DRS. Truist Financial raised Leonardo DRS to a "strong-buy" rating in a research note on Friday, May 1st. Canaccord Genuity Group increased their price objective on Leonardo DRS from $52.00 to $54.00 and gave the stock a "buy" rating in a report on Wednesday, May 6th. Weiss Ratings upgraded Leonardo DRS from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday. Finally, Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Sunday, May 10th.

Insider Activity at Leonardo DRS

In other Leonardo DRS news, EVP Jason Rinsky sold 3,865 shares of the firm's stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $46.87, for a total value of $181,152.55. Following the completion of the transaction, the executive vice president directly owned 31,310 shares in the company, valued at $1,467,499.70. This trade represents a 10.99% decrease in their ownership of the stock. The transaction 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 8,318 shares of Leonardo DRS stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $46.48, for a total value of $386,620.64. Following the transaction, the chief financial officer owned 55,460 shares of the company's stock, valued at $2,577,780.80. The trade was a 13.04% 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. Over the last 90 days, insiders sold 65,364 shares of company stock worth $2,994,785. Corporate insiders own 0.25% of the company's stock.

Institutional Trading of Leonardo DRS

Several hedge funds have recently added to or reduced their stakes in DRS. Tema ETFs LLC boosted its stake in Leonardo DRS by 140.0% in the 2nd quarter. Tema ETFs LLC now owns 1,776 shares of the company's stock valued at $76,000 after purchasing an additional 1,036 shares during the period. GAMMA Investing LLC lifted its holdings in shares of Leonardo DRS by 49.8% during the second quarter. GAMMA Investing LLC now owns 1,904 shares of the company's stock worth $81,000 after buying an additional 633 shares in the last quarter. Militia Capital Management LLC bought a new stake in shares of Leonardo DRS in the first quarter valued at about $2,328,000. Parallel Advisors LLC increased its position in Leonardo DRS by 1,701.4% during the first quarter. Parallel Advisors LLC now owns 1,261 shares of the company's stock worth $56,000 after acquiring an additional 1,191 shares during the period. Finally, Ruggaard & Associates LLC acquired a new stake in Leonardo DRS in the 1st quarter worth about $211,000. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Stock Down 0.1%

Shares of DRS stock opened at $48.10 on Friday. Leonardo DRS has a 12-month low of $32.43 and a 12-month high of $50.59. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The firm has a fifty day moving average of $45.35 and a 200-day moving average of $43.60. The company has a market capitalization of $12.83 billion, a price-to-earnings ratio of 44.95, a P/E/G ratio of 3.47 and a beta of 0.36.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.21 by $0.05. The business had revenue of $846.00 million for the quarter, compared to analysts' expectations of $825.05 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The firm's revenue was up 5.9% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.20 EPS. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. As a group, equities research analysts predict that Leonardo DRS will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Stockholders of record on Tuesday, May 19th were given a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.7%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS's payout ratio is currently 33.64%.

About Leonardo DRS

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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