Leonardo DRS (NASDAQ:DRS) Stock Price Down 4.5% - Here's What Happened

Key Points

• Leonardo DRS's stock fell by 4.5% to $41.87, with trading volume down by 72% compared to average daily volumes.
• Despite the stock's decline, analysts maintain a "Moderate Buy" consensus rating with a price target averaging $46.75, with some firms raising their target prices recently.
• The company reported earnings of $0.23 per share, exceeding analysts' expectations and showing a 10.1% year-on-year revenue growth.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) dropped 4.5% during trading on Wednesday . The stock traded as low as $41.70 and last traded at $41.87. Approximately 279,119 shares changed hands during trading, a decline of 72% from the average daily volume of 1,012,155 shares. The stock had previously closed at $43.85.

Wall Street Analysts Forecast Growth

DRS has been the subject of several research reports. Truist Financial lifted their price objective on shares of Leonardo DRS from $45.00 to $51.00 and gave the company a "buy" rating in a research note on Friday, July 11th. Wall Street Zen cut shares of Leonardo DRS from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Canaccord Genuity Group started coverage on shares of Leonardo DRS in a research note on Monday, August 11th. They set a "buy" rating and a $50.00 price objective for the company. Morgan Stanley boosted their target price on shares of Leonardo DRS from $44.00 to $47.00 and gave the company an "equal weight" rating in a research note on Thursday, July 31st. Finally, The Goldman Sachs Group started coverage on shares of Leonardo DRS in a research note on Monday, June 30th. They issued a "buy" rating and a $49.00 target price for the company. Seven equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and a consensus price target of $46.75.

Leonardo DRS Price Performance

The company has a market capitalization of $10.77 billion, a price-to-earnings ratio of 43.48, a PEG ratio of 2.28 and a beta of 0.56. The stock's 50-day simple moving average is $42.40 and its two-hundred day simple moving average is $41.89. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.13.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last released its earnings results on Wednesday, July 30th. The company reported $0.23 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.01. Leonardo DRS had a net margin of 7.31% and a return on equity of 11.02%. The business had revenue of $829.00 million during the quarter, compared to analyst estimates of $824.50 million. During the same quarter in the prior year, the firm earned $0.18 earnings per share. The company's revenue for the quarter was up 10.1% compared to the same quarter last year. Leonardo DRS has set its FY 2025 guidance at 1.060-1.110 EPS. Equities research analysts predict that Leonardo DRS, Inc. will post 1.04 earnings per share for the current year.

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, September 3rd. Stockholders of record on Wednesday, August 20th were issued a dividend of $0.09 per share. The ex-dividend date of this dividend was Wednesday, August 20th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. Leonardo DRS's dividend payout ratio is presently 38.71%.

Insider Activity at Leonardo DRS

In related news, COO John Baylouny sold 11,420 shares of the company's stock in a transaction dated Wednesday, September 17th. The shares were sold at an average price of $41.78, for a total value of $477,127.60. Following the completion of the sale, the chief operating officer owned 114,488 shares of the company's stock, valued at approximately $4,783,308.64. This represents a 9.07% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this link. Also, CFO Michael Dippold sold 19,360 shares of the company's stock in a transaction dated Friday, September 12th. The shares were sold at an average price of $41.65, for a total transaction of $806,344.00. Following the completion of the sale, the chief financial officer directly owned 58,834 shares of the company's stock, valued at $2,450,436.10. This represents a 24.76% decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders sold 46,558 shares of company stock valued at $1,933,052. 0.12% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of DRS. Norges Bank purchased a new position in Leonardo DRS during the second quarter worth about $44,336,000. Nuveen LLC purchased a new position in Leonardo DRS during the first quarter worth about $31,254,000. Invesco Ltd. boosted its stake in Leonardo DRS by 30.1% during the second quarter. Invesco Ltd. now owns 3,768,160 shares of the company's stock worth $175,144,000 after buying an additional 870,772 shares during the period. T. Rowe Price Investment Management Inc. boosted its stake in Leonardo DRS by 16.0% during the first 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. Finally, Bank of America Corp DE boosted its stake in Leonardo DRS by 64.6% during the second quarter. Bank of America Corp DE now owns 1,251,415 shares of the company's stock worth $58,166,000 after buying an additional 491,158 shares during the period. Hedge funds and other institutional investors 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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