Leonardo DRS, Inc. (NASDAQ:DRS) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Analysts give Leonardo DRS a consensus "Moderate Buy" rating (6 buys, 3 holds) with an average 1-year target of $51, and recent price targets from brokers range roughly $47–$59.
• Company insiders sold a total of 64,361 shares (~$2.94M) last quarter — including the CFO (16,330 shares) and an EVP (28,960 shares) — reducing their holdings to just 0.34% of the company.
• Key fundamentals: market cap ~$11.95 billion, trailing P/E ~43.6, last quarter EPS of $0.42 on $1.06B revenue, and a quarterly dividend of $0.09 (annualized yield ~0.8%).

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the nine research firms that are covering the firm, MarketBeat Ratings reports. Three analysts have rated the stock with a hold rating and six have assigned a buy rating to the company. The average 1-year target price among brokers that have issued a report on the stock in the last year is $51.00.

DRS has been the topic of several recent analyst reports. Morgan Stanley set a $47.00 price objective on shares of Leonardo DRS in a research note on Wednesday, February 25th. Wall Street Zen raised shares of Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Saturday, April 4th. Weiss Ratings raised shares of Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Bank of America upped their price target on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research report on Wednesday, March 25th. Finally, Truist Financial set a $59.00 price target on shares of Leonardo DRS in a research report on Wednesday, February 25th.

Insider Buying and Selling

In related news, CFO Michael Dippold sold 16,330 shares of the company'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 transaction of $739,259.10. Following the completion of the transaction, the chief financial officer owned 26,622 shares of the company's stock, valued at approximately $1,205,177.94. This represents a 38.02% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, EVP Sally Wallace sold 28,960 shares of the company's 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 transaction, the executive vice president directly owned 58,353 shares of the company's stock, valued at $2,704,661.55. This trade represents a 33.17% 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 quarter, insiders sold 64,361 shares of company stock valued at $2,944,837. Insiders own 0.34% of the company's stock.

Institutional Investors Weigh In On Leonardo DRS

Several large investors have recently made changes to their positions in DRS. True Wealth Design LLC increased its position in shares of Leonardo DRS by 122.6% in the third quarter. True Wealth Design LLC now owns 541 shares of the company's stock worth $25,000 after acquiring an additional 298 shares in the last quarter. Quarry LP increased its position in shares of Leonardo DRS by 7,041.7% in the fourth quarter. Quarry LP now owns 857 shares of the company's stock worth $29,000 after acquiring an additional 845 shares in the last quarter. Clearstead Advisors LLC increased its position in shares of Leonardo DRS by 564.1% in the third quarter. Clearstead Advisors LLC now owns 684 shares of the company's stock worth $31,000 after acquiring an additional 581 shares in the last quarter. GAMMA Investing LLC increased its position in shares of Leonardo DRS by 72.2% in the third quarter. GAMMA Investing LLC now owns 751 shares of the company's stock worth $34,000 after acquiring an additional 315 shares in the last quarter. Finally, Leonteq Securities AG acquired a new stake in shares of Leonardo DRS in the fourth quarter worth $34,000. Institutional investors and hedge funds own 18.76% of the company's stock.

Leonardo DRS Stock Performance

Shares of DRS opened at $44.94 on Friday. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.60 and a current ratio of 1.89. The company has a market capitalization of $11.95 billion, a price-to-earnings ratio of 43.63, a PEG ratio of 3.42 and a beta of 0.43. The company's 50 day simple moving average is $44.05 and its 200 day simple moving average is $40.02. Leonardo DRS has a 1 year low of $32.43 and a 1 year high of $49.31.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its quarterly earnings data on Sunday, February 15th. The company reported $0.42 earnings per share (EPS) for the quarter. The business had revenue of $1.06 billion for the quarter. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.68%. On average, sell-side analysts predict that Leonardo DRS will post 1.04 EPS for the current year.

Leonardo DRS Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, March 10th. This represents a $0.36 annualized dividend and a yield of 0.8%. Leonardo DRS's dividend payout ratio is 34.95%.

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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