Leonardo DRS (NASDAQ:DRS) Upgraded at Wall Street Zen

Key Points

• Wall Street Zen upgraded Leonardo DRS from "hold" to "buy," joining several other firms raising ratings or price targets; the consensus from analysts is a "Moderate Buy" with an average price target of about $51.00 (notable targets: BofA $55, Truist $59, Morgan Stanley $47).
• The shares trade around the mid-$40s (opened $46.30), with a market cap of $12.3B and a PE of 44.95; last quarter EPS was $0.42 on $1.06B revenue and analysts expect roughly $1.04 EPS for the current year.
• Insider selling has been active recently—SVP and CFO sold stock in March–April and insiders disposed of 76,249 shares (~$3.38M) over the past 90 days, leaving insiders with just 0.34% ownership.

Leonardo DRS (NASDAQ:DRS - Get Free Report) was upgraded by equities researchers at Wall Street Zen from a "hold" rating to a "buy" rating in a report issued on Saturday.

Other equities analysts have also issued research reports about the stock. Weiss Ratings upgraded shares of Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a report on Friday, March 20th. Morgan Stanley set a $47.00 price objective on Leonardo DRS in a research report on Wednesday, February 25th. Bank of America boosted 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. Finally, Truist Financial set a $59.00 target price on Leonardo DRS in a research report on Wednesday, February 25th. Six investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the company. According to data from MarketBeat, Leonardo DRS has an average rating of "Moderate Buy" and a consensus price target of $51.00.

Leonardo DRS Stock Performance

Shares of DRS stock opened at $46.30 on Friday. The stock has a market capitalization of $12.32 billion, a PE ratio of 44.95, a PEG ratio of 3.42 and a beta of 0.43. The business's 50 day simple moving average is $42.95 and its 200 day simple moving average is $39.75. The company has a debt-to-equity ratio of 0.12, a current ratio of 1.89 and a quick ratio of 1.60. Leonardo DRS has a one year low of $28.17 and a one year high of $49.31.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last posted its quarterly earnings data on Sunday, February 15th. The company reported $0.42 EPS for the quarter. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.68%. The company had revenue of $1.06 billion for the quarter. As a group, research analysts forecast that Leonardo DRS will post 1.04 earnings per share for the current year.

Insiders Place Their Bets

In other news, SVP Pamela Morrow sold 12,000 shares of the stock in a transaction dated Tuesday, March 3rd. The shares were sold at an average price of $45.20, for a total transaction of $542,400.00. Following the transaction, the senior vice president owned 6,494 shares of the company's stock, valued at $293,528.80. This represents a 64.89% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CFO Michael Dippold sold 7,071 shares of the firm's stock in a transaction dated Thursday, April 2nd. The shares were sold at an average price of $45.38, for a total value of $320,881.98. Following the completion of the sale, the chief financial officer owned 63,778 shares of the company's stock, valued at approximately $2,894,245.64. This represents a 9.98% decrease in their ownership of the stock. 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. Over the last ninety days, insiders sold 76,249 shares of company stock worth $3,382,314. 0.34% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in DRS. True Wealth Design LLC increased its holdings in shares of Leonardo DRS by 122.6% during the third quarter. True Wealth Design LLC now owns 541 shares of the company's stock valued at $25,000 after acquiring an additional 298 shares in the last quarter. Steward Partners Investment Advisory LLC lifted its holdings in shares of Leonardo DRS by 91.7% in the 2nd quarter. Steward Partners Investment Advisory LLC now owns 575 shares of the company's stock worth $27,000 after purchasing an additional 275 shares in the last quarter. Quarry LP grew its position in Leonardo DRS by 7,041.7% in the 4th quarter. Quarry LP now owns 857 shares of the company's stock valued at $29,000 after purchasing an additional 845 shares during the period. Clearstead Advisors LLC grew its position in Leonardo DRS by 564.1% in the 3rd quarter. Clearstead Advisors LLC now owns 684 shares of the company's stock valued at $31,000 after purchasing an additional 581 shares during the period. Finally, GAMMA Investing LLC increased its stake in Leonardo DRS by 72.2% during the 3rd quarter. GAMMA Investing LLC now owns 751 shares of the company's stock valued at $34,000 after purchasing an additional 315 shares in the last quarter. Institutional investors own 18.76% of the company's stock.

Leonardo DRS Company Profile

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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