Leonardo DRS (NASDAQ:DRS) Stock Price Crosses Above 50-Day Moving Average - Here's What Happened

Key Points

• Leonardo DRS shares moved above their 50-day moving average, trading as high as $36.45 and last at $36.41, compared with a 50-day average of $36.32.
• Analyst sentiment is broadly positive: the stock has a consensus “Buy” rating and an average price target of $51.50. Recent quarterly earnings were $0.46 per share, beating estimates of $0.35, while revenue rose 11% year over year to $1.07 billion.
• The company announced a quarterly dividend of $0.09 per share, equivalent to a 1.0% annualized yield.

Leonardo DRS, Inc. (NASDAQ:DRS - Get Free Report) crossed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $36.32 and traded as high as $36.45. Leonardo DRS shares last traded at $36.41, with a volume of 2,001,181 shares trading hands.

Wall Street Analyst Weigh In

Several brokerages recently issued reports on DRS. Weiss Ratings raised shares of Leonardo DRS from a "hold (c+)" rating to a "buy (b-)" rating in a report on Wednesday, November 4th. Guggenheim started coverage on Leonardo DRS in a report on Monday, September 14th. They set a "buy" rating and a $51.00 target price for the company. Zacks Research raised Leonardo DRS from a "hold" rating to a "strong-buy" rating in a research report on Friday, October 30th. JPMorgan Chase & Co. lifted their price target on Leonardo DRS from $48.00 to $53.00 and gave the company a "neutral" rating in a report on Friday, July 31st. Finally, BTIG Research reiterated a "buy" rating and issued a $50.00 price target on shares of Leonardo DRS in a report on Monday, November 2nd. Three research analysts have rated the stock with a Strong Buy rating, five have assigned a Buy rating and two have given a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus target price of $51.50.

Leonardo DRS Stock Performance

The company has a current ratio of 1.88, a quick ratio of 1.56 and a debt-to-equity ratio of 0.06. The stock has a market cap of $9.71 billion, a PE ratio of 26.77, a P/E/G ratio of 1.90 and a beta of 0.37. The business's 50-day moving average price is $36.32 and its 200-day moving average price is $42.00.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its earnings results on Thursday, October 29th. The company reported $0.46 earnings per share for the quarter, beating the consensus estimate of $0.35 by $0.11. The company had revenue of $1.07 billion during the quarter, compared to the consensus estimate of $1.03 billion. Leonardo DRS had a net margin of 9.40% and a return on equity of 14.33%. Leonardo DRS's revenue was up 11.0% compared to the same quarter last year. During the same period last year, the firm earned $0.29 earnings per share. As a group, equities research analysts expect that Leonardo DRS, Inc. will post 1.52 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Shareholders of record on Thursday, November 12th will be given a dividend of $0.09 per share. This represents a $0.36 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend is Thursday, November 12th. Leonardo DRS's payout ratio is currently 26.47%.

Insiders Place Their Bets

In other Leonardo DRS news, CFO Michael Dippold sold 14,317 shares of the company's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $37.91, for a total transaction of $542,757.47. Following the transaction, the chief financial officer owned 20,826 shares in the company, valued at approximately $789,513.66. This represents a 40.74% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.25% of the company's stock.

Institutional Investors Weigh In On Leonardo DRS

A number of large investors have recently made changes to their positions in the stock. Global Retirement Partners LLC acquired a new position in shares of Leonardo DRS in the 2nd quarter valued at $31,000. Edmond DE Rothschild Holding S.A. acquired a new stake in Leonardo DRS during the 2nd quarter worth about $32,000. Fifth Third Bancorp purchased a new stake in Leonardo DRS during the 1st quarter valued at about $41,000. CX Institutional grew its stake in Leonardo DRS by 1,617.9% during the 3rd quarter. CX Institutional now owns 962 shares of the company's stock valued at $35,000 after purchasing an additional 906 shares during the last quarter. Finally, Parallel Advisors LLC grew its stake in Leonardo DRS by 1,701.4% during the 1st quarter. Parallel Advisors LLC now owns 1,261 shares of the company's stock valued at $56,000 after purchasing an additional 1,191 shares during the last quarter. 18.76% of the stock is owned by hedge funds and other institutional investors.

Leonardo DRS Company Profile

Leonardo DRS, Inc is a U.S.-based defense technology company and a subsidiary of the Italian aerospace and defense group Leonardo S.p.A. It develops and supplies advanced products and services for the U.S. military and other government and commercial customers.

The company's offerings include naval power and propulsion systems, combat and mission systems, electro-optical and infrared sensors, electronic warfare and communications equipment, and computing and networking technologies. Its products support operations across maritime, land, air and space domains.

Leonardo DRS traces its roots to DRS Technologies, founded in 1969.

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