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

Key Points

• Leonardo DRS, Inc. has received a consensus rating of "Moderate Buy", with ten research firms covering the stock, leading to an average price target of $46.75.
• Recent insider sales include CFO Michael Dippold selling 19,360 shares and Director Eric Salzman selling 4,403 shares, indicating a decrease in their ownership percentages.
• The company reported $0.23 EPS for the last quarter, surpassing estimates and setting a FY 2025 guidance of 1.060-1.110 EPS.

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) have been assigned an average rating of "Moderate Buy" from the ten research firms that are presently covering the stock, Marketbeat reports. Two equities research analysts have rated the stock with a hold recommendation, seven have given a buy recommendation and one has given a strong buy recommendation to the company. The average twelve-month price target among analysts that have covered the stock in the last year is $46.75.

DRS has been the subject of a number of recent analyst reports. Canaccord Genuity Group began coverage on shares of Leonardo DRS in a report on Monday, August 11th. They issued a "buy" rating and a $50.00 price objective for the company. Truist Financial upped their price target on Leonardo DRS from $45.00 to $51.00 and gave the stock a "buy" rating in a report on Friday, July 11th. The Goldman Sachs Group started coverage on Leonardo DRS in a research report on Monday, June 30th. They issued a "buy" rating and a $49.00 price objective for the company. Zacks Research raised shares of Leonardo DRS from a "hold" rating to a "strong-buy" rating in a research note on Tuesday, October 14th. Finally, Morgan Stanley lifted their target price on shares of Leonardo DRS from $44.00 to $47.00 and gave the company an "equal weight" rating in a research report on Thursday, July 31st.

Insider Activity

In other Leonardo DRS news, CFO Michael Dippold sold 19,360 shares of the firm's stock in a transaction on Friday, September 12th. The stock was sold at an average price of $41.65, for a total transaction of $806,344.00. Following the completion of the sale, the chief financial officer owned 58,834 shares of the company's stock, valued at $2,450,436.10. This trade represents a 24.76% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Eric Salzman sold 4,403 shares of the company's stock in a transaction on Wednesday, August 20th. The shares were sold at an average price of $41.17, for a total value of $181,271.51. Following the completion of the transaction, the director directly owned 11,820 shares in the company, valued at approximately $486,629.40. This trade represents a 27.14% decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 55,039 shares of company stock worth $2,303,587 over the last quarter. 0.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

Several hedge funds have recently bought and sold shares of the company. Vanguard Group Inc. grew its stake in Leonardo DRS by 0.3% during the 1st 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. Versor Investments LP grew its position in shares of Leonardo DRS by 24.2% during the first quarter. Versor Investments LP now owns 51,657 shares of the company's stock worth $1,698,000 after buying an additional 10,057 shares in the last quarter. Robeco Institutional Asset Management B.V. increased its stake in shares of Leonardo DRS by 172.7% during the first quarter. Robeco Institutional Asset Management B.V. now owns 17,971 shares of the company's stock worth $591,000 after buying an additional 11,381 shares during the period. Advantage Alpha Capital Partners LP purchased a new stake in shares of Leonardo DRS during the first quarter worth approximately $3,882,000. Finally, Capital Fund Management S.A. acquired a new stake in Leonardo DRS in the first quarter valued at approximately $1,099,000. Institutional investors and hedge funds own 18.76% of the company's stock.

Leonardo DRS Trading Up 1.5%

Leonardo DRS stock opened at $40.53 on Friday. The stock has a 50-day moving average price of $42.18 and a 200 day moving average price of $42.20. The company has a market capitalization of $10.79 billion, a price-to-earnings ratio of 43.58, a price-to-earnings-growth ratio of 2.08 and a beta of 0.56. Leonardo DRS has a 52 week low of $27.87 and a 52 week high of $49.31. 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 released its quarterly earnings data on Wednesday, July 30th. The company reported $0.23 EPS for the quarter, topping the consensus estimate of $0.22 by $0.01. Leonardo DRS had a return on equity of 11.02% and a net margin of 7.31%.The business had revenue of $829.00 million for the quarter, compared to analyst estimates of $824.50 million. During the same quarter in the prior year, the firm posted $0.18 EPS. The business's quarterly revenue was up 10.1% compared to the same quarter last year. Leonardo DRS has set its FY 2025 guidance at 1.060-1.110 EPS. Sell-side analysts anticipate that Leonardo DRS will post 1.04 EPS for the current year.

Leonardo DRS Dividend Announcement

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

Leonardo DRS Company Profile

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.

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