Leonardo DRS (NASDAQ:DRS) Downgraded by Wall Street Zen to Hold

Key Points

• Wall Street Zen downgraded Leonardo DRS from "buy" to "hold," though the stock still has a consensus rating of Moderate Buy with a $51 average target and six analysts rated it Buy vs. three Hold.
• Significant insider selling occurred recently: the CFO sold 7,071 shares and an SVP sold 12,000, with insiders offloading 64,361 shares (~$2.94M) over the past 90 days and now owning just 0.25% of the company.
• In the latest quarter the company posted $0.42 EPS on $1.06 billion of revenue; the stock opened at $40.03 (down ~1.5%), with a $10.65 billion market cap and a P/E of about 38.9.

Leonardo DRS (NASDAQ:DRS - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued to clients and investors on Saturday.

DRS has been the subject of several other reports. Weiss Ratings raised Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Friday, March 20th. Truist Financial set a $59.00 price objective on shares of Leonardo DRS in a report on Wednesday, February 25th. Bank of America upped their target price on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a "buy" rating in a research note on Wednesday, March 25th. Finally, Morgan Stanley set a $47.00 price target on shares of Leonardo DRS in a research report on Wednesday, February 25th. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and a consensus target price of $51.00.

Leonardo DRS Stock Down 1.5%

Shares of DRS opened at $40.03 on Friday. The firm has a market cap of $10.65 billion, a P/E ratio of 38.86, a price-to-earnings-growth ratio of 3.00 and a beta of 0.29. Leonardo DRS has a 12-month low of $32.43 and a 12-month high of $49.31. The company's 50-day moving average price is $44.57 and its 200 day moving average price is $39.81. The company has a current ratio of 1.89, a quick ratio of 1.60 and a debt-to-equity ratio of 0.12.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last issued its quarterly earnings data on Sunday, February 15th. The company reported $0.42 earnings per share (EPS) for the quarter. The firm 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 forecast that Leonardo DRS will post 1.27 earnings per share for the current year.

Insider Buying and Selling

In related news, CFO Michael Dippold sold 7,071 shares of the firm's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $45.38, for a total value of $320,881.98. Following the sale, the chief financial officer owned 63,778 shares of the company's stock, valued at $2,894,245.64. This trade represents a 9.98% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 12,000 shares of the firm's stock in a transaction that occurred on Tuesday, March 3rd. The shares were sold at an average price of $45.20, for a total transaction of $542,400.00. Following the completion of the sale, the senior vice president directly owned 6,494 shares in the company, valued at approximately $293,528.80. This trade represents a 64.89% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders have sold 64,361 shares of company stock worth $2,944,837. Company insiders own 0.25% of the company's stock.

Hedge Funds Weigh In On Leonardo DRS

Several large investors have recently bought and sold shares of DRS. Vanguard Group Inc. lifted its holdings in Leonardo DRS by 0.5% during the 4th quarter. Vanguard Group Inc. now owns 7,717,551 shares of the company's stock worth $263,091,000 after buying an additional 34,858 shares during the last quarter. State Street Corp lifted its holdings in Leonardo DRS by 4.0% during the 4th quarter. State Street Corp now owns 3,988,403 shares of the company's stock worth $135,965,000 after buying an additional 153,697 shares during the last quarter. First Trust Advisors LP lifted its holdings in Leonardo DRS by 116.8% during the 3rd quarter. First Trust Advisors LP now owns 3,661,214 shares of the company's stock worth $166,219,000 after buying an additional 1,972,596 shares during the last quarter. AQR Capital Management LLC lifted its stake in Leonardo DRS by 77.1% during the fourth quarter. AQR Capital Management LLC now owns 2,255,400 shares of the company's stock worth $76,887,000 after purchasing an additional 981,956 shares during the last quarter. Finally, Stephens Investment Management Group LLC lifted its stake in Leonardo DRS by 107.6% during the first quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company's stock worth $94,308,000 after purchasing an additional 1,098,108 shares during the last quarter. Hedge funds and other institutional investors own 18.76% of the company's stock.

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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