Leonardo DRS (NASDAQ:DRS) Sets New 12-Month High - Should You Buy?

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report)'s stock price reached a new 52-week high during trading on Monday . The stock traded as high as $47.11 and last traded at $46.78, with a volume of 152677 shares traded. The stock had previously closed at $46.41.

Analysts Set New Price Targets

Several brokerages have issued reports on DRS. Morgan Stanley upped their price objective on Leonardo DRS from $34.00 to $44.00 and gave the company an "equal weight" rating in a research note on Tuesday, May 6th. Truist Financial increased their price objective on Leonardo DRS from $37.00 to $40.00 and gave the company a "buy" rating in a research report on Thursday, April 17th. The Goldman Sachs Group initiated coverage on Leonardo DRS in a report on Monday, June 30th. They set a "buy" rating and a $49.00 price objective for the company. Wall Street Zen downgraded shares of Leonardo DRS from a "buy" rating to a "hold" rating in a research report on Friday, June 27th. Finally, JPMorgan Chase & Co. raised 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. Three research analysts have rated the stock with a hold rating and five have given a buy rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and an average price target of $44.29.

Leonardo DRS Price Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.64 and a current ratio of 2.02. The firm has a market capitalization of $12.30 billion, a P/E ratio of 47.01, a price-to-earnings-growth ratio of 2.73 and a beta of 0.63. The company has a 50-day moving average price of $43.41 and a 200-day moving average price of $36.84.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its quarterly earnings results on Thursday, May 1st. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.17 by $0.03. The firm had revenue of $799.00 million for the quarter, compared to the consensus estimate of $736.72 million. Leonardo DRS had a return on equity of 10.63% and a net margin of 7.00%. The company's revenue for the quarter was up 16.1% on a year-over-year basis. During the same quarter last year, the business posted $0.14 EPS. On average, sell-side analysts predict that Leonardo DRS, Inc. will post 1.04 earnings per share for the current year.

Leonardo DRS Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, June 5th. Stockholders of record on Thursday, May 22nd were issued a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.78%. The ex-dividend date was Thursday, May 22nd. Leonardo DRS's dividend payout ratio is presently 41.38%.

Insider Activity

In other news, Director David W. Carey sold 6,438 shares of the 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 completion of the transaction, the director directly owned 23,882 shares in the company, valued at approximately $1,097,139.08. This represents a 21.23% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Company insiders own 0.34% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of DRS. FMR LLC increased its holdings in Leonardo DRS by 183.2% in the fourth quarter. FMR LLC now owns 3,457,612 shares of the company's stock valued at $111,715,000 after purchasing an additional 2,236,661 shares during the period. Nuveen LLC acquired a new position in Leonardo DRS during the 1st quarter worth about $31,254,000. T. Rowe Price Investment Management Inc. lifted its holdings in Leonardo DRS by 16.0% during the 1st quarter. T. Rowe Price Investment Management Inc. now owns 5,848,473 shares of the company's stock worth $192,298,000 after buying an additional 804,938 shares during the period. Norges Bank acquired a new position in Leonardo DRS during the 4th quarter worth about $24,920,000. Finally, Teacher Retirement System of Texas lifted its holdings in Leonardo DRS by 87.7% during the 4th quarter. Teacher Retirement System of Texas now owns 1,067,630 shares of the company's stock worth $34,495,000 after buying an additional 498,979 shares during the period. 18.76% of the stock is currently owned by institutional investors.

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.