Leonardo DRS (NASDAQ:DRS) Given New $55.00 Price Target at Bank of America

Key Points

• Bank of America raised its price target on Leonardo DRS to $55 (from $50) and maintains a "buy" rating, implying about a 21.6% upside; MarketBeat shows a consensus of "Moderate Buy" with an average target near $51.
• Leonardo DRS beat quarterly expectations with EPS of $0.42 vs. $0.37 and revenue of $1.06B vs. $994.8M, and set FY2026 guidance of $1.20–$1.26 EPS (vs. average analyst forecast of $1.04 for the current year).
• Company insiders have been net sellers (CFO sold 16,330 shares; insiders sold 40,218 shares worth ~$1.72M in the last 90 days and now own 0.12%), while several institutional investors (e.g., First Trust, Millennium, AQR, Invesco) materially increased their stakes; institutions own 18.76% of the stock.

Leonardo DRS (NASDAQ:DRS - Get Free Report) had its price target upped by analysts at Bank of America from $50.00 to $55.00 in a note issued to investors on Wednesday,Benzinga reports. The firm presently has a "buy" rating on the stock. Bank of America's price target suggests a potential upside of 21.55% from the company's current price.

DRS has been the topic of a number of other research reports. Truist Financial set a $59.00 target price on Leonardo DRS in a report on Wednesday, February 25th. Weiss Ratings upgraded Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday. Wall Street Zen cut Leonardo DRS from a "buy" rating to a "hold" rating in a research report on Saturday, February 28th. Finally, Morgan Stanley set a $47.00 target price on shares of Leonardo DRS in a research report on Wednesday, February 25th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. According to data from MarketBeat, Leonardo DRS presently has a consensus rating of "Moderate Buy" and an average target price of $51.00.

Leonardo DRS Stock Performance

Shares of Leonardo DRS stock traded up $1.19 on Wednesday, reaching $45.25. The stock had a trading volume of 66,578 shares, compared to its average volume of 1,246,371. The stock has a market cap of $12.04 billion, a P/E ratio of 43.99, a price-to-earnings-growth ratio of 2.21 and a beta of 0.41. The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.60 and a current ratio of 1.89. Leonardo DRS has a fifty-two week low of $28.17 and a fifty-two week high of $49.31. The business's 50-day moving average price is $42.36 and its two-hundred day moving average price is $39.50.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.42 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.05. The company had revenue of $1.06 billion during the quarter, compared to analysts' expectations of $994.79 million. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.68%. The business's quarterly revenue was up 8.1% compared to the same quarter last year. During the same period in the prior year, the company earned $0.38 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS. On average, sell-side analysts forecast that Leonardo DRS will post 1.04 EPS for the current year.

Insider Activity

In other news, CFO Michael Dippold sold 16,330 shares of the stock in a transaction that occurred on Monday, March 16th. The stock was sold at an average price of $45.27, for a total value of $739,259.10. Following the completion of the transaction, the chief financial officer directly owned 26,622 shares of the company's stock, valued at approximately $1,205,177.94. This represents a 38.02% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, EVP Sally Wallace sold 1,300 shares of the firm's stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $35.17, for a total value of $45,721.00. Following the transaction, the executive vice president owned 58,353 shares of the company's stock, valued at $2,052,275.01. This trade represents a 2.18% decrease in their position. The SEC filing for this sale provides additional information. In the last ninety days, insiders have sold 40,218 shares of company stock worth $1,719,136. Company insiders own 0.12% of the company's stock.

Institutional Investors Weigh In On Leonardo DRS

Several institutional investors and hedge funds have recently made changes to their positions in the company. First Trust Advisors LP boosted its position in Leonardo DRS by 116.8% in the third quarter. First Trust Advisors LP now owns 3,661,214 shares of the company's stock valued at $166,219,000 after buying an additional 1,972,596 shares in the last quarter. Norges Bank bought a new stake in Leonardo DRS during the fourth quarter worth about $37,481,000. Millennium Management LLC increased its holdings in shares of Leonardo DRS by 152.1% during the third quarter. Millennium Management LLC now owns 1,776,185 shares of the company's stock worth $80,639,000 after buying an additional 1,071,708 shares in the last quarter. AQR Capital Management LLC raised its stake in shares of Leonardo DRS by 528.6% in the third quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company's stock valued at $56,000,000 after acquiring an additional 1,070,870 shares during the last quarter. Finally, Invesco Ltd. raised its stake in shares of Leonardo DRS by 30.1% in the second quarter. Invesco Ltd. now owns 3,768,160 shares of the company's stock valued at $175,144,000 after acquiring an additional 870,772 shares during the last quarter. Institutional investors and hedge funds own 18.76% of the company's stock.

About Leonardo DRS

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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