Leonardo DRS (NASDAQ:DRS) Hits New 12-Month High - Here's What Happened

Key Points

• Leonardo DRS shares hit a new 52-week high, trading as high as $49.34 after rising about 8.3% on the day. The move came amid strong momentum in the stock.
• Recent analyst actions have been mostly positive, including upgrades from Truist Financial and Wall Street Zen. The stock now carries a Moderate Buy consensus rating with an average price target of $52.
• The company’s latest quarterly results topped expectations, with EPS of $0.26 versus $0.21 expected and revenue of $846 million, up 5.9% year over year. Leonardo DRS also reaffirmed FY2026 EPS guidance of 1.260–1.300.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) shares reached a new 52-week high on Thursday . The stock traded as high as $49.34 and last traded at $49.3370, with a volume of 371388 shares traded. The stock had previously closed at $46.11.

Analyst Ratings Changes

Several equities research analysts recently issued reports on DRS shares. Truist Financial upgraded Leonardo DRS to a "strong-buy" rating in a report on Friday, May 1st. Wall Street Zen raised Leonardo DRS from a "hold" rating to a "buy" rating in a research note on Sunday, May 10th. Bank of America increased their price objective on Leonardo DRS from $50.00 to $55.00 and gave the company a "buy" rating in a research note on Wednesday, March 25th. Weiss Ratings raised shares of Leonardo DRS from a "hold (c)" rating to a "hold (c+)" rating in a research note on Friday, June 5th. Finally, Morgan Stanley set a $47.00 target price on shares of Leonardo DRS in a research report on Wednesday, February 25th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, Leonardo DRS has an average rating of "Moderate Buy" and a consensus price target of $52.00.

Leonardo DRS Trading Up 8.3%

The company has a current ratio of 1.86, a quick ratio of 1.52 and a debt-to-equity ratio of 0.05. The company has a fifty day simple moving average of $44.44 and a 200-day simple moving average of $41.16. The company has a market capitalization of $13.32 billion, a PE ratio of 46.51, a PEG ratio of 3.42 and a beta of 0.34.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.21 by $0.05. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The firm had revenue of $846.00 million during the quarter, compared to analyst estimates of $825.05 million. During the same quarter in the prior year, the firm posted $0.20 earnings per share. Leonardo DRS's quarterly revenue was up 5.9% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Analysts predict that Leonardo DRS, Inc. will post 1.3 EPS for the current year.

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 19th were given a $0.09 dividend. The ex-dividend date was Tuesday, May 19th. This represents a $0.36 dividend on an annualized basis and a yield of 0.7%. Leonardo DRS's payout ratio is currently 33.64%.

Insider Buying and Selling at Leonardo DRS

In related news, Director Reuben Jeffery III bought 25,000 shares of the firm's stock in a transaction on Tuesday, May 19th. The shares were bought at an average price of $42.77 per share, with a total value of $1,069,250.00. Following the completion of the transaction, the director directly owned 25,000 shares of the company's stock, valued at $1,069,250. This represents a ∞ increase in their position. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jason Rinsky sold 3,865 shares of the stock in a transaction dated Wednesday, June 3rd. The stock was sold at an average price of $46.87, for a total transaction of $181,152.55. Following the transaction, the executive vice president directly owned 31,310 shares of the company's stock, valued at approximately $1,467,499.70. This trade represents a 10.99% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 76,089 shares of company stock worth $3,491,236. Insiders own 0.25% of the company's stock.

Hedge Funds Weigh In On Leonardo DRS

Several large investors have recently made changes to their positions in DRS. Bank of Montreal Can increased its holdings in Leonardo DRS by 1.6% in the 4th quarter. Bank of Montreal Can now owns 19,513 shares of the company's stock valued at $665,000 after purchasing an additional 309 shares during the last quarter. Sequoia Financial Advisors LLC lifted its stake in Leonardo DRS by 4.7% during the fourth quarter. Sequoia Financial Advisors LLC now owns 7,228 shares of the company's stock worth $246,000 after purchasing an additional 322 shares in the last quarter. Osaic Holdings Inc. boosted its position in shares of Leonardo DRS by 17.0% during the second quarter. Osaic Holdings Inc. now owns 2,383 shares of the company's stock worth $111,000 after buying an additional 347 shares during the period. Stephens Inc. AR boosted its position in shares of Leonardo DRS by 3.3% during the fourth quarter. Stephens Inc. AR now owns 12,165 shares of the company's stock worth $415,000 after buying an additional 389 shares during the period. Finally, Penn Capital Management Company LLC grew its stake in shares of Leonardo DRS by 0.9% in the third quarter. Penn Capital Management Company LLC now owns 45,880 shares of the company's stock valued at $2,115,000 after buying an additional 406 shares in the last quarter. 18.76% of the stock is currently owned by institutional investors and hedge funds.

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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