Leonardo DRS (NASDAQ:DRS) Shares Down 4.1% - Here's What Happened

Shares of Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) fell 4.1% during trading on Monday . The company traded as low as $44.11 and last traded at $44.17. 1,038,586 shares traded hands during mid-day trading, an increase of 20% from the average session volume of 866,184 shares. The stock had previously closed at $46.07.

Wall Street Analysts Forecast Growth

A number of brokerages have recently weighed in on DRS. Bank of America upgraded Leonardo DRS from a "neutral" rating to a "buy" rating and set a $40.00 price target on the stock in a research report on Friday, March 7th. Truist Financial upped their target price on shares of Leonardo DRS from $37.00 to $40.00 and gave the stock a "buy" rating in a research report on Thursday, April 17th. Morgan Stanley raised their target price on Leonardo DRS from $34.00 to $44.00 and gave the company an "equal weight" rating in a research report on Tuesday, May 6th. JPMorgan Chase & Co. boosted their price target on Leonardo DRS from $33.00 to $48.00 and gave the stock a "neutral" rating in a research report on Monday. Finally, BTIG Research set a $49.00 target price on shares of Leonardo DRS and gave the company a "buy" rating in a research report on Monday, May 5th. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $43.50.

Leonardo DRS Price Performance

The company has a current ratio of 2.11, a quick ratio of 1.70 and a debt-to-equity ratio of 0.14. The company has a market cap of $11.62 billion, a price-to-earnings ratio of 55.27, a P/E/G ratio of 1.41 and a beta of 0.63. The business has a 50-day moving average price of $39.94 and a 200 day moving average price of $35.51.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its quarterly earnings data on Thursday, May 1st. The company reported $0.20 earnings per share (EPS) for the quarter, topping 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 10.37% and a net margin of 6.59%. The business's revenue for the quarter was up 16.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $0.14 EPS. As a group, research analysts expect that Leonardo DRS, Inc. will post 1.04 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The company also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Thursday, May 22nd were paid a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 0.82%. The ex-dividend date of this dividend was Thursday, May 22nd. Leonardo DRS's dividend payout ratio (DPR) is currently 41.38%.

Leonardo DRS announced that its Board of Directors has approved a stock buyback program on Thursday, February 20th that allows the company to repurchase $75.00 million in shares. This repurchase authorization allows the company to buy up to 0.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, CFO Michael Dippold sold 26,618 shares of the stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $32.70, for a total value of $870,408.60. Following the completion of the sale, the chief financial officer now directly owns 68,802 shares of the company's stock, valued at $2,249,825.40. This represents a 27.90% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO William Lynn III sold 45,000 shares of the business's stock in a transaction that occurred on Tuesday, March 18th. The shares were sold at an average price of $32.70, for a total transaction of $1,471,500.00. Following the transaction, the chief executive officer now directly owns 328,404 shares in the company, valued at $10,738,810.80. The trade was a 12.05% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 92,354 shares of company stock worth $3,019,773. 0.34% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Leonardo DRS

A number of institutional investors have recently modified their holdings of the stock. Militia Capital Partners LP purchased a new stake in shares of Leonardo DRS during the first quarter worth $263,000. Rhumbline Advisers raised its stake in shares of Leonardo DRS by 5.7% during the 1st quarter. Rhumbline Advisers now owns 102,479 shares of the company's stock worth $3,369,000 after purchasing an additional 5,561 shares in the last quarter. Strs Ohio acquired a new stake in shares of Leonardo DRS during the 1st quarter valued at about $888,000. Acadian Asset Management LLC bought a new stake in shares of Leonardo DRS in the 1st quarter valued at approximately $225,000. Finally, Intech Investment Management LLC increased its holdings in Leonardo DRS by 18.6% in the first quarter. Intech Investment Management LLC now owns 48,560 shares of the company's stock worth $1,597,000 after buying an additional 7,625 shares during the last quarter. Institutional investors and hedge funds own 18.76% of the company's stock.

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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