Leonardo DRS (NASDAQ:DRS) Stock Price Down 6.3% - What's Next?

Key Points

• Leonardo DRS shares fell by 6.3% to close at $45.14, with increased trading volume of approximately 1.38 million shares.
• The company has various analysts' recommendations ranging from buy to hold, with a consensus price target of $45.86.
• Leonardo DRS recently announced a quarterly dividend of $0.09 per share, representing an annualized yield of 0.83%.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) shares dropped 6.3% during trading on Wednesday . The company traded as low as $45.64 and last traded at $45.14. Approximately 1,384,539 shares changed hands during trading, an increase of 35% from the average daily volume of 1,022,976 shares. The stock had previously closed at $48.20.

Analyst Upgrades and Downgrades

A number of research analysts have weighed in on DRS shares. Wall Street Zen lowered shares of Leonardo DRS from a "buy" rating to a "hold" rating in a research note on Friday, June 27th. Morgan Stanley lifted their price objective on shares of Leonardo DRS from $44.00 to $47.00 and gave the stock an "equal weight" rating in a research report on Thursday. The Goldman Sachs Group initiated coverage on shares of Leonardo DRS in a report on Monday, June 30th. They issued a "buy" rating and a $49.00 price target on the stock. Truist Financial raised their price objective on shares of Leonardo DRS from $45.00 to $51.00 and gave the stock a "buy" rating in a report on Friday, July 11th. Finally, BTIG Research set a $49.00 price target on shares of Leonardo DRS and gave the company a "buy" rating in a research report on Monday, May 5th. Three equities research analysts have rated the stock with a hold rating and five have issued a buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $46.29.

Leonardo DRS Stock Performance

The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.64 and a current ratio of 2.11. The firm's 50 day moving average is $45.25 and its 200-day moving average is $38.47. The stock has a market capitalization of $11.09 billion, a price-to-earnings ratio of 44.81, a PEG ratio of 2.39 and a beta of 0.65.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its earnings results on Wednesday, July 30th. The company reported $0.23 earnings per share for the quarter, topping the consensus estimate of $0.22 by $0.01. The company had revenue of $829.00 million during the quarter, compared to analyst estimates of $824.50 million. Leonardo DRS had a net margin of 7.31% and a return on equity of 11.02%. Leonardo DRS's revenue was up 10.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.18 earnings per share. Analysts forecast that Leonardo DRS, Inc. will post 1.04 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 3rd. Shareholders of record on Wednesday, August 20th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a dividend yield of 0.9%. The ex-dividend date is Wednesday, August 20th. Leonardo DRS's payout ratio is presently 38.71%.

Insider Buying and Selling at Leonardo DRS

In other Leonardo DRS news, Director David W. Carey sold 6,438 shares of the stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $45.94, for a total value of $295,761.72. Following the completion of the sale, the director owned 23,882 shares of the company's stock, valued at $1,097,139.08. This trade represents a 21.23% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. 0.34% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Leonardo DRS

Institutional investors have recently bought and sold shares of the stock. Y Intercept Hong Kong Ltd bought a new position in Leonardo DRS in the 2nd quarter worth approximately $1,003,000. State of New Jersey Common Pension Fund D acquired a new position in shares of Leonardo DRS during the second quarter valued at $2,150,000. AlphaQuest LLC lifted its stake in Leonardo DRS by 112.9% in the second quarter. AlphaQuest LLC now owns 15,001 shares of the company's stock valued at $697,000 after buying an additional 7,954 shares during the period. Sumitomo Mitsui Trust Group Inc. acquired a new position in Leonardo DRS in the second quarter valued at about $260,000. Finally, Caitong International Asset Management Co. Ltd bought a new position in shares of Leonardo DRS during the second quarter worth about $26,000. 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.