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

Key Points

• Leonardo DRS, Inc. has received a consensus rating of "Moderate Buy" from eight research firms, with a 12-month average target price of $46.75.
• Insider trading activity includes a significant 27.14% decrease in ownership by Director Eric Salzman after selling 4,403 shares, valued at approximately $181,271.51.
• The company reported a 10.1% year-over-year revenue increase for the last quarter, achieving $829 million compared to analyst expectations of $824.50 million.

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) have been given a consensus recommendation of "Moderate Buy" by the eight analysts that are covering the stock, MarketBeat reports. Two analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 12 month price target among analysts that have updated their coverage on the stock in the last year is $46.75.

DRS has been the topic of several research reports. JPMorgan Chase & Co. upped their price target on Leonardo DRS from $33.00 to $48.00 and gave the company a "neutral" rating in a research report on Monday, June 16th. The Goldman Sachs Group initiated coverage on Leonardo DRS in a research report on Monday, June 30th. They set a "buy" rating and a $49.00 price target on the stock. Truist Financial upped their price target on Leonardo DRS from $45.00 to $51.00 and gave the company a "buy" rating in a research report on Friday, July 11th. Morgan Stanley upped their price target on Leonardo DRS from $44.00 to $47.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st. Finally, Wall Street Zen lowered Leonardo DRS from a "buy" rating to a "hold" rating in a research report on Friday, June 27th.

Insider Buying and Selling

In related news, Director Eric Salzman sold 4,403 shares of the company's stock in a transaction on Wednesday, August 20th. The stock was sold at an average price of $41.17, for a total transaction of $181,271.51. Following the completion of the transaction, the director directly owned 11,820 shares in the company, valued at $486,629.40. This represents a 27.14% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director David W. Carey sold 6,438 shares of the company's stock in a transaction on Friday, June 13th. The stock was sold at an average price of $45.94, for a total value of $295,761.72. Following the transaction, the director owned 23,882 shares of the company's stock, valued at approximately $1,097,139.08. The trade was a 21.23% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 22,216 shares of company stock worth $945,342 in the last three months. 0.34% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the business. Yorktown Management & Research Co Inc bought a new position in shares of Leonardo DRS in the first quarter worth $260,000. Ameriprise Financial Inc. bought a new position in shares of Leonardo DRS in the fourth quarter worth $344,000. Vanguard Group Inc. grew its stake in shares of Leonardo DRS by 0.3% in the first quarter. Vanguard Group Inc. now owns 7,957,909 shares of the company's stock worth $261,656,000 after purchasing an additional 22,990 shares in the last quarter. Brevan Howard Capital Management LP bought a new position in shares of Leonardo DRS in the fourth quarter worth $503,000. Finally, Robeco Institutional Asset Management B.V. grew its stake in shares of Leonardo DRS by 172.7% in the first quarter. Robeco Institutional Asset Management B.V. now owns 17,971 shares of the company's stock worth $591,000 after purchasing an additional 11,381 shares in the last quarter. Institutional investors own 18.76% of the company's stock.

Leonardo DRS Stock Up 0.7%

Shares of DRS traded up $0.29 during trading on Thursday, reaching $41.20. The company's stock had a trading volume of 958,076 shares, compared to its average volume of 896,661. The company has a fifty day moving average of $44.10 and a two-hundred day moving average of $39.67. Leonardo DRS has a twelve month low of $26.00 and a twelve month high of $49.31. The company has a market cap of $10.96 billion, a price-to-earnings ratio of 44.30, a P/E/G ratio of 2.13 and a beta of 0.63. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.13.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.22 by $0.01. Leonardo DRS had a return on equity of 11.02% and a net margin of 7.31%.The company had revenue of $829.00 million for the quarter, compared to analyst estimates of $824.50 million. During the same period in the prior year, the company posted $0.18 EPS. Leonardo DRS's quarterly revenue was up 10.1% on a year-over-year basis. Leonardo DRS has set its FY 2025 guidance at 1.060-1.110 EPS. On average, sell-side analysts predict that Leonardo DRS will post 1.04 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 3rd. Investors of record on Wednesday, August 20th were paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. The ex-dividend date was Wednesday, August 20th. Leonardo DRS's dividend payout ratio is presently 38.71%.

About Leonardo DRS

Leonardo DRS, Inc, together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.