Leonardo DRS (NASDAQ:DRS) Upgraded by Zacks Research to "Strong-Buy" Rating

Key Points

• Leonardo DRS has been upgraded to a "Strong-Buy" rating by Zacks Research, reflecting heightened investor confidence in the stock's future performance.
• Recent price target increases from various firms: Truist Financial raised their target to $51, while JPMorgan Chase & Co. increased theirs to $48, indicating positive market sentiment.
• Leonardo DRS reported a quarterly earnings EPS of $0.23, surpassing estimates and showing a 10.1% revenue increase compared to the same quarter last year.

Leonardo DRS (NASDAQ:DRS - Get Free Report) was upgraded by investment analysts at Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other research firms also recently issued reports on DRS. Truist Financial lifted their price target on shares of Leonardo DRS from $45.00 to $51.00 and gave the company a "buy" rating in a research report on Friday, July 11th. JPMorgan Chase & Co. lifted their price target on shares of Leonardo DRS from $33.00 to $48.00 and gave the company a "neutral" rating in a research report on Monday, June 16th. Weiss Ratings reiterated a "buy (b)" rating on shares of Leonardo DRS in a research report on Wednesday, October 8th. 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, Canaccord Genuity Group started coverage on shares of Leonardo DRS in a research report on Monday, August 11th. They set a "buy" rating and a $50.00 price target for the company. One analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have issued a Hold rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average price target of $46.75.

Leonardo DRS Price Performance

Shares of NASDAQ:DRS opened at $40.19 on Tuesday. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.13. The company has a market cap of $10.70 billion, a P/E ratio of 43.22, a PEG ratio of 2.29 and a beta of 0.56. Leonardo DRS has a 52 week low of $27.87 and a 52 week high of $49.31. The company has a 50-day moving average price of $42.38 and a 200 day moving average price of $41.88.

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

Insider Transactions at Leonardo DRS

In other news, COO John Baylouny sold 11,420 shares of the firm's stock in a transaction that occurred on Wednesday, September 17th. The shares were sold at an average price of $41.78, for a total transaction of $477,127.60. Following the completion of the transaction, the chief operating officer directly owned 114,488 shares of the company's stock, valued at $4,783,308.64. This trade represents a 9.07% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Eric Salzman sold 4,403 shares of the firm's stock in a transaction that occurred on Wednesday, August 20th. The stock was sold at an average price of $41.17, for a total transaction of $181,271.51. Following the transaction, the director directly owned 11,820 shares of the company's stock, valued at approximately $486,629.40. This trade represents a 27.14% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 46,558 shares of company stock valued at $1,933,052 in the last ninety days. Corporate insiders own 0.34% of the company's stock.

Institutional Trading of Leonardo DRS

Several hedge funds and other institutional investors have recently bought and sold shares of DRS. Caitong International Asset Management Co. Ltd purchased a new stake in Leonardo DRS in the 2nd quarter worth approximately $26,000. Steward Partners Investment Advisory LLC grew its stake in shares of Leonardo DRS by 91.7% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 575 shares of the company's stock valued at $27,000 after buying an additional 275 shares during the period. GAMMA Investing LLC grew its stake in shares of 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 buying an additional 315 shares during the period. Nisa Investment Advisors LLC grew its stake in shares of Leonardo DRS by 92.3% during the 1st quarter. Nisa Investment Advisors LLC now owns 1,273 shares of the company's stock valued at $42,000 after buying an additional 611 shares during the period. Finally, BI Asset Management Fondsmaeglerselskab A S acquired a new position in shares of Leonardo DRS during the 1st quarter valued at $50,000. 18.76% of the stock is owned by hedge funds and other institutional investors.

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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