Leidos (NYSE:LDOS) Shares Gap Up After Earnings Beat

Leidos Holdings, Inc. (NYSE:LDOS - Get Free Report)'s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $131.62, but opened at $139.09. Leidos shares last traded at $136.40, with a volume of 685,962 shares traded.

The aerospace company reported $2.29 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.70 by $0.59. The firm had revenue of $3.98 billion during the quarter, compared to analyst estimates of $3.82 billion. Leidos had a net margin of 1.29% and a return on equity of 22.92%. Leidos's revenue was up 7.5% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $1.47 EPS.

Leidos Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Tuesday, May 28th. Shareholders of record on Tuesday, May 14th will be paid a dividend of $0.38 per share. This represents a $1.52 dividend on an annualized basis and a yield of 1.08%. The ex-dividend date is Friday, June 14th. Leidos's payout ratio is currently 107.04%.

Analyst Upgrades and Downgrades

Several brokerages have recently issued reports on LDOS. Truist Financial lifted their price objective on shares of Leidos from $135.00 to $150.00 and gave the stock a "buy" rating in a research note on Tuesday, April 9th. Wells Fargo & Company raised their target price on Leidos from $137.00 to $147.00 and gave the stock an "overweight" rating in a research report on Thursday, April 4th. Royal Bank of Canada raised their price objective on Leidos from $105.00 to $120.00 and gave the stock a "sector perform" rating in a research report on Wednesday, February 14th. TheStreet upgraded Leidos from a "c" rating to a "b" rating in a report on Tuesday, February 13th. Finally, Jefferies Financial Group increased their price target on shares of Leidos from $130.00 to $135.00 and gave the stock a "hold" rating in a research report on Wednesday, April 10th. Two research analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the stock. Based on data from MarketBeat, Leidos presently has an average rating of "Moderate Buy" and an average price target of $132.42.

Insiders Place Their Bets

In related news, Director David G. Fubini sold 7,874 shares of the firm's stock in a transaction that occurred on Wednesday, March 13th. The stock was sold at an average price of $127.89, for a total value of $1,007,005.86. Following the transaction, the director now directly owns 14,696 shares of the company's stock, valued at approximately $1,879,471.44. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. In related news, Director David G. Fubini sold 7,874 shares of Leidos stock in a transaction on Wednesday, March 13th. The shares were sold at an average price of $127.89, for a total value of $1,007,005.86. Following the transaction, the director now owns 14,696 shares in the company, valued at approximately $1,879,471.44. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, Director Gary Stephen May sold 2,745 shares of the company's stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $124.49, for a total transaction of $341,725.05. Following the sale, the director now owns 11,352 shares of the company's stock, valued at $1,413,210.48. The disclosure for this sale can be found here. Insiders own 0.96% of the company's stock.

Hedge Funds Weigh In On Leidos

A number of institutional investors and hedge funds have recently bought and sold shares of LDOS. Victory Capital Management Inc. increased its holdings in shares of Leidos by 0.8% during the 4th quarter. Victory Capital Management Inc. now owns 4,923,663 shares of the aerospace company's stock worth $532,937,000 after purchasing an additional 39,174 shares during the period. Wellington Management Group LLP increased its position in shares of Leidos by 6.2% during the third quarter. Wellington Management Group LLP now owns 4,660,386 shares of the aerospace company's stock valued at $429,501,000 after purchasing an additional 272,090 shares during the period. Massachusetts Financial Services Co. MA raised its stake in shares of Leidos by 5.9% in the third quarter. Massachusetts Financial Services Co. MA now owns 3,044,206 shares of the aerospace company's stock valued at $280,554,000 after purchasing an additional 169,351 shares in the last quarter. Norges Bank acquired a new stake in Leidos during the fourth quarter worth $202,191,000. Finally, Dimensional Fund Advisors LP increased its holdings in Leidos by 2.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,841,723 shares of the aerospace company's stock valued at $199,344,000 after buying an additional 45,079 shares during the period. Institutional investors own 76.12% of the company's stock.

Leidos Stock Up 6.5 %

The company has a market capitalization of $18.95 billion, a P/E ratio of 98.75, a P/E/G ratio of 1.80 and a beta of 0.70. The business's fifty day moving average price is $128.08 and its 200 day moving average price is $114.53. The company has a current ratio of 1.34, a quick ratio of 1.24 and a debt-to-equity ratio of 1.10.

About Leidos

Leidos Holdings, Inc, together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S.