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

Key Points

• Leonardo DRS has an average analyst recommendation of “Moderate Buy”, with eight brokerages covering the stock and a consensus 1-year price target of $52.00.
• The company beat quarterly earnings and revenue estimates, reporting EPS of $0.26 versus $0.21 expected and revenue of $846 million versus $825.05 million expected, while raising FY 2026 guidance to 1.260–1.300 EPS.
• Insider activity has leaned toward selling, including recent share sales by the SVP and CFO, though institutional investors such as hedge funds have increased stakes in the company.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) has been given an average recommendation of "Moderate Buy" by the eight brokerages that are presently covering the company, MarketBeat Ratings reports. Four equities research analysts have rated the stock with a hold rating, three have given a buy rating and one has assigned a strong buy rating to the company. The average 1-year price objective among brokerages that have issued a report on the stock in the last year is $52.00.

Several equities analysts recently issued reports on the company. Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a research report on Sunday, May 10th. Morgan Stanley set a $47.00 price objective on Leonardo DRS in a research report on Wednesday, February 25th. Canaccord Genuity Group upped their price objective on Leonardo DRS from $52.00 to $54.00 and gave the company a "buy" rating in a research report on Wednesday, May 6th. Bank of America upped their price objective on Leonardo DRS from $50.00 to $55.00 and gave the company a "buy" rating in a research report on Wednesday, March 25th. Finally, Weiss Ratings cut Leonardo DRS from a "hold (c+)" rating to a "hold (c)" rating in a research report on Wednesday, May 20th.

Leonardo DRS Stock Performance

Leonardo DRS stock opened at $46.15 on Friday. The company has a market capitalization of $12.31 billion, a P/E ratio of 43.13, a PEG ratio of 3.37 and a beta of 0.34. Leonardo DRS has a twelve month low of $32.43 and a twelve month high of $49.31. 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 stock's 50 day moving average is $44.33 and its 200 day moving average is $40.84.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 earnings per share (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 return on equity of 12.02% and a net margin of 7.85%.The firm's quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the prior year, the firm posted $0.20 EPS. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, 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. Investors of record on Tuesday, May 19th were given a $0.09 dividend. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.36 annualized dividend and a yield of 0.8%. Leonardo DRS's dividend payout ratio is 33.64%.

Insider Buying and Selling at Leonardo DRS

In other Leonardo DRS news, SVP Pamela Morrow sold 11,545 shares of the business's stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total transaction of $521,025.85. Following the completion of the sale, the senior vice president directly owned 10,551 shares in the company, valued at approximately $476,166.63. The trade was a 52.25% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CFO Michael Dippold sold 7,071 shares of the business's stock in a transaction on Thursday, April 2nd. The shares were sold at an average price of $45.38, for a total transaction of $320,881.98. Following the sale, the chief financial officer owned 63,778 shares of the company's stock, valued at approximately $2,894,245.64. This represents a 9.98% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 67,771 shares of company stock worth $3,104,615. 0.25% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Leonardo DRS

Hedge funds have recently added to or reduced their stakes in the stock. Stephens Investment Management Group LLC raised its stake in Leonardo DRS by 24.8% during the 4th quarter. Stephens Investment Management Group LLC now owns 1,020,223 shares of the company's stock valued at $34,779,000 after buying an additional 202,758 shares during the last quarter. Swedbank AB increased its stake in shares of Leonardo DRS by 1,026.0% in the 4th quarter. Swedbank AB now owns 96,205 shares of the company's stock worth $3,280,000 after purchasing an additional 87,661 shares in the last quarter. AXQ Capital LP increased its stake in shares of Leonardo DRS by 301.6% in the 4th quarter. AXQ Capital LP now owns 44,872 shares of the company's stock worth $1,530,000 after purchasing an additional 33,699 shares in the last quarter. First Trust Advisors LP increased its stake in shares of Leonardo DRS by 116.8% in the 3rd quarter. First Trust Advisors LP now owns 3,661,214 shares of the company's stock worth $166,219,000 after purchasing an additional 1,972,596 shares in the last quarter. Finally, PFG Advisors purchased a new stake in shares of Leonardo DRS in the 3rd quarter worth $1,484,000. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

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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