UBS Group Issues Positive Forecast for Leidos (NYSE:LDOS) Stock Price

Key Points

• UBS Group raised its Leidos price target to $138 from $124 while maintaining a “neutral” rating, implying 8.45% upside from the prior close. Analysts overall maintain a consensus “hold” rating with an average target of $156.40.
• Leidos exceeded quarterly expectations, reporting $3.26 adjusted EPS versus $2.91 expected and $4.56 billion in revenue versus $4.44 billion forecast. Management guided fiscal 2026 EPS to $12.20–$12.50, supported by growth in defense, homeland security and intelligence.
• The company authorized a 20 million-share buyback, though GAAP net income and margins declined year over year, partly because of acquisition and joint-venture costs.

Leidos (NYSE:LDOS - Get Free Report) had its price target upped by investment analysts at UBS Group from $124.00 to $138.00 in a report released on Wednesday,Benzinga reports. The brokerage currently has a "neutral" rating on the aerospace company's stock. UBS Group's target price would indicate a potential upside of 8.45% from the stock's previous close.

LDOS has been the topic of several other reports. Truist Financial reduced their price objective on Leidos from $195.00 to $160.00 and set a "buy" rating on the stock in a research note on Friday, July 10th. Bank of America reiterated a "neutral" rating and set a $125.00 price objective (down from $200.00) on shares of Leidos in a research report on Wednesday, June 17th. Wall Street Zen upgraded shares of Leidos from a "hold" rating to a "buy" rating in a research report on Thursday, July 16th. The Goldman Sachs Group lowered their price target on shares of Leidos from $171.00 to $152.00 and set a "neutral" rating for the company in a report on Tuesday, July 14th. Finally, TD Cowen reduced their price objective on Leidos from $160.00 to $115.00 and set a "hold" rating on the stock in a research report on Tuesday, July 7th. One analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating and ten have issued a Hold rating to the company. Based on data from MarketBeat.com, Leidos presently has an average rating of "Hold" and a consensus price target of $156.40.

Leidos Stock Performance

LDOS traded down $3.36 during trading on Wednesday, hitting $127.24. The stock had a trading volume of 986,868 shares, compared to its average volume of 1,313,087. The company has a debt-to-equity ratio of 1.19, a current ratio of 1.40 and a quick ratio of 1.29. The company has a 50 day moving average price of $113.27 and a 200-day moving average price of $145.47. Leidos has a one year low of $98.86 and a one year high of $205.77. The firm has a market cap of $16.01 billion, a price-to-earnings ratio of 11.64, a P/E/G ratio of 1.74 and a beta of 0.52.

Leidos (NYSE:LDOS - Get Free Report) last released its quarterly earnings results on Tuesday, August 4th. The aerospace company reported $3.26 earnings per share for the quarter, beating analysts' consensus estimates of $2.91 by $0.35. The company had revenue of $4.56 billion during the quarter, compared to the consensus estimate of $4.44 billion. Leidos had a net margin of 8.15% and a return on equity of 31.92%. The firm's quarterly revenue was up 7.2% on a year-over-year basis. During the same period in the previous year, the business earned $3.21 earnings per share. Leidos has set its FY 2026 guidance at 12.200-12.500 EPS. As a group, research analysts predict that Leidos will post 12.3 EPS for the current year.

Leidos announced that its board has authorized a share repurchase plan on Friday, July 31st that permits the company to buyback 20,000,000 shares. This buyback authorization permits the aerospace company to reacquire shares of its stock through open market purchases. Shares buyback plans are often a sign that the company's board believes its stock is undervalued.

Insider Activity

In other news, Director Gary Stephen May sold 1,484 shares of the company's stock in a transaction on Thursday, May 7th. The shares were sold at an average price of $132.75, for a total value of $197,001.00. Following the sale, the director directly owned 10,137 shares of the company's stock, valued at approximately $1,345,686.75. This represents a 12.77% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website. Company insiders own 0.77% of the company's stock.

Institutional Investors Weigh In On Leidos

Institutional investors and hedge funds have recently made changes to their positions in the business. Longview Financial Advisors Inc. acquired a new position in Leidos in the first quarter valued at approximately $26,000. Hantz Financial Services Inc. lifted its position in shares of Leidos by 94.7% during the 4th quarter. Hantz Financial Services Inc. now owns 148 shares of the aerospace company's stock valued at $27,000 after acquiring an additional 72 shares during the period. Hilton Head Capital Partners LLC acquired a new stake in Leidos in the fourth quarter worth $28,000. Rakuten Securities Inc. increased its stake in Leidos by 110.5% in the fourth quarter. Rakuten Securities Inc. now owns 160 shares of the aerospace company's stock valued at $29,000 after purchasing an additional 84 shares in the last quarter. Finally, Wexford Capital LP bought a new position in shares of Leidos during the 3rd quarter worth about $32,000. Institutional investors own 76.12% of the company's stock.

Leidos News Summary

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: BNP Paribas Exane raised its Leidos price target from $165 to $175 and assigned an “outperform” rating, implying substantial upside from recent levels. Benzinga price-target report
• Positive Sentiment: Leidos reported second-quarter revenue of $4.56 billion, up 7% year over year and above the $4.44 billion analyst estimate. Non-GAAP EPS of $3.26 also exceeded consensus of $2.91, supported by demand in defense, homeland security, intelligence and defense technology. Leidos second-quarter results
• Positive Sentiment: Management raised fiscal 2026 revenue guidance to $18.2 billion-$18.4 billion and EPS guidance to $12.20-$12.50. Operating cash flow reached $793 million and non-GAAP free cash flow was $761 million, while $4.9 billion of bookings and a $48.7 billion backlog supported visibility. Leidos cash-flow and guidance report
• Neutral Sentiment: The earnings call indicated that growth in Defense, Homeland and Intelligence is offsetting pressure in the Health segment, suggesting a favorable demand mix but also continued weakness in part of the portfolio. Leidos earnings-call highlights
• Negative Sentiment: GAAP net income fell to $356 million, or $2.81 per diluted share, from $393 million, or $3.01, a year earlier. Acquisition and joint-venture costs contributed to the decline, while net margin narrowed to 7.8% from 9.2%. Leidos net-income report
• Negative Sentiment: Recent disclosed activity shows insider selling and several large institutional position reductions. These signals may add pressure after the earnings-driven advance, although they are less significant than the company’s fundamental results.

About Leidos

Leidos is an American technology and engineering company that provides services and solutions to government and commercial customers, with a strong focus on national security, defense, intelligence, and civil government markets. The company delivers systems integration, engineering, cybersecurity, software development, data analytics, cloud migration and managed IT services, as well as mission support for complex programs. Leidos' work spans areas such as C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance), secure communications, sensors and systems engineering, and health IT solutions for public-sector healthcare programs.

Leidos traces its corporate roots to Science Applications International Corporation (SAIC) and emerged as an independent, publicly traded company following a corporate separation in 2013.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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