Leidos (NYSE:LDOS) Shares Cross Above Two Hundred Day Moving Average - Here's Why

Key Points

• Leidos shares rose 1.3% and crossed above their 200-day moving average of $141.60, reaching as high as $145.14 before last trading at $142.81.
• Analyst sentiment remains mixed: Leidos has a consensus “Hold” rating and an average price target of $150.85, with recent target changes ranging from $130 to $175.
• The company reported quarterly EPS of $3.26, beating estimates by $0.35, while revenue increased 7.2% year over year to $4.56 billion. Its board also authorized a 20 million-share buyback, which may signal management believes the stock is undervalued.

Leidos Holdings, Inc. (NYSE:LDOS - Get Free Report) shares passed above its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $141.60 and traded as high as $145.14. Leidos shares last traded at $142.81, with a volume of 952,306 shares trading hands.

Wall Street Analysts Forecast Growth

LDOS has been the topic of a number of research analyst reports. BNP Paribas Exane raised their price target on Leidos from $165.00 to $175.00 and gave the company an "outperform" rating in a report on Wednesday, August 5th. UBS Group lifted their price objective on shares of Leidos from $124.00 to $138.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. TD Cowen dropped their price objective on shares of Leidos from $135.00 to $130.00 and set a "hold" rating on the stock in a report on Tuesday, October 6th. JPMorgan Chase & Co. lowered Leidos from an "overweight" rating to a "neutral" rating and dropped their price objective for the stock from $160.00 to $142.00 in a research note on Thursday, October 8th. Finally, Citigroup dropped their target price on shares of Leidos from $161.00 to $141.00 and set a "buy" rating for the company in a research note on Wednesday, October 7th. One investment analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and ten have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of "Hold" and a consensus target price of $150.85.

Leidos Stock Up 1.3%

The stock has a market cap of $17.92 billion, a P/E ratio of 13.32, a PEG ratio of 1.57 and a beta of 0.58. The company has a current ratio of 1.63, a quick ratio of 1.60 and a debt-to-equity ratio of 1.13. The firm has a 50-day simple moving average of $129.33 and a two-hundred day simple moving average of $141.60.

Leidos (NYSE:LDOS - Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The aerospace company reported $3.26 earnings per share for the quarter, beating the consensus estimate of $2.91 by $0.35. The company had revenue of $4.56 billion for the quarter, compared to the consensus estimate of $4.44 billion. Leidos had a return on equity of 30.81% and a net margin of 7.80%. Leidos's revenue for the quarter was up 7.2% on a year-over-year basis. During the same quarter last year, the business posted $3.21 EPS. Equities research analysts expect that Leidos Holdings, Inc. will post 12.38 earnings per share for the current fiscal year.

Leidos announced that its board has initiated a share repurchase program on Friday, July 31st that authorizes the company to repurchase 20,000,000 shares. This buyback authorization authorizes the aerospace company to repurchase shares of its stock through open market purchases. Share buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other Leidos news, Director Noel Geer sold 10,000 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the completion of the sale, the director directly owned 34,274 shares in the company, valued at $4,820,980.84. This represents a 22.59% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Gary May sold 1,000 shares of the stock in a transaction that occurred on Tuesday, September 1st. The shares were sold at an average price of $140.85, for a total value of $140,850.00. Following the transaction, the director owned 10,204 shares in the company, valued at $1,437,233.40. This trade represents a 8.93% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Leidos

Institutional investors have recently bought and sold shares of the business. Western Wealth Management LLC purchased a new stake in shares of Leidos during the first quarter valued at approximately $42,000. Kelleher Financial Advisors purchased a new stake in Leidos during the second quarter valued at $28,000. Cedar Mountain Advisors LLC lifted its holdings in shares of Leidos by 5,620.0% in the 1st quarter. Cedar Mountain Advisors LLC now owns 286 shares of the aerospace company's stock worth $44,000 after acquiring an additional 281 shares during the last quarter. Fortitude Family Office LLC grew its holdings in shares of Leidos by 273.7% in the third quarter. Fortitude Family Office LLC now owns 370 shares of the aerospace company's stock worth $45,000 after purchasing an additional 271 shares during the last quarter. Finally, N.E.W. Advisory Services LLC bought a new stake in shares of Leidos in the 2nd quarter valued at about $41,000. 76.12% of the stock is currently owned by institutional investors and hedge funds.

About Leidos

Leidos Holdings, Inc NYSE: LDOS is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.

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