Wall Street Zen Upgrades Leonardo DRS (NASDAQ:DRS) to Buy

Key Points

• Wall Street Zen upgraded Leonardo DRS from hold to buy, adding to a generally positive analyst backdrop that now shows a Moderate Buy consensus and an average price target of $52.
• The company reported better-than-expected Q1 earnings, posting EPS of $0.26 versus the $0.21 estimate and revenue of $846 million versus the $825.05 million forecast, with revenue up 5.9% year over year.
• Despite the favorable outlook, insiders have been selling shares; over the last quarter, insider sales totaled 64,361 shares worth about $2.94 million.

Leonardo DRS (NASDAQ:DRS - Get Free Report) was upgraded by stock analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a note issued to investors on Sunday.

Several other equities analysts also recently weighed in on the stock. Morgan Stanley set a $47.00 price target on shares of Leonardo DRS in a report on Wednesday, February 25th. Bank of America lifted their price target on shares of Leonardo DRS from $50.00 to $55.00 and gave the company a "buy" rating in a report on Wednesday, March 25th. Canaccord Genuity Group lifted their price target on shares of Leonardo DRS from $52.00 to $54.00 and gave the company a "buy" rating in a report on Wednesday. Truist Financial raised shares of Leonardo DRS to a "strong-buy" rating in a report on Friday, May 1st. Finally, Weiss Ratings downgraded shares of Leonardo DRS from a "buy (b-)" rating to a "hold (c+)" rating in a report on Wednesday. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Leonardo DRS currently has an average rating of "Moderate Buy" and an average target price of $52.00.

Leonardo DRS Stock Performance

Shares of DRS stock opened at $41.36 on Friday. The company has a 50 day moving average price of $44.58 and a 200-day moving average price of $39.79. Leonardo DRS has a 52 week low of $32.43 and a 52 week high of $49.31. The firm has a market capitalization of $11.03 billion, a PE ratio of 38.65, a P/E/G ratio of 3.01 and a beta of 0.29. The company has a quick ratio of 1.60, a current ratio of 1.86 and a debt-to-equity ratio of 0.05.

Leonardo DRS (NASDAQ:DRS - Get Free Report) last announced its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.05. The company had revenue of $846.00 million during the quarter, compared to analyst estimates of $825.05 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The firm's quarterly revenue was up 5.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.20 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. As a group, equities research analysts expect that Leonardo DRS will post 1.29 earnings per share for the current year.

Insider Transactions at Leonardo DRS

In other news, SVP Pamela Morrow sold 12,000 shares of the business's stock in a transaction on Tuesday, March 3rd. The shares were sold at an average price of $45.20, for a total value of $542,400.00. Following the transaction, the senior vice president owned 6,494 shares of the company's stock, valued at approximately $293,528.80. The trade was a 64.89% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, EVP Sally Wallace sold 28,960 shares of the business's stock in a transaction on Thursday, April 2nd. The stock was sold at an average price of $46.35, for a total transaction of $1,342,296.00. Following the completion of the transaction, the executive vice president directly owned 58,353 shares in the company, valued at $2,704,661.55. This trade represents a 33.17% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 64,361 shares of company stock valued at $2,944,837. 0.25% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

Several hedge funds have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in Leonardo DRS by 4.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 43,817 shares of the company's stock valued at $1,441,000 after purchasing an additional 1,922 shares in the last quarter. Millennium Management LLC raised its stake in Leonardo DRS by 29.0% during the first quarter. Millennium Management LLC now owns 369,749 shares of the company's stock valued at $12,157,000 after purchasing an additional 83,077 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Leonardo DRS by 9.4% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 148,474 shares of the company's stock valued at $4,882,000 after purchasing an additional 12,712 shares in the last quarter. Intech Investment Management LLC raised its stake in Leonardo DRS by 18.6% during the first quarter. Intech Investment Management LLC now owns 48,560 shares of the company's stock valued at $1,597,000 after purchasing an additional 7,625 shares in the last quarter. Finally, Acadian Asset Management LLC purchased a new stake in Leonardo DRS during the first quarter valued at $225,000. Hedge funds and other institutional investors own 18.76% of the company's stock.

Leonardo DRS Company Profile

Leonardo DRS is a U.S.-based defense technology company and wholly owned subsidiary of Italy's Leonardo S.p.A. The firm specializes in developing and integrating mission-critical systems for military and government customers, with a primary focus on command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR). Its core offerings encompass advanced sensors, targeting systems, radars and electronic warfare solutions designed to enhance situational awareness and operational effectiveness across land, sea and air domains.

The company's portfolio includes naval combat management systems, unmanned vehicle sensors, power generation and distribution equipment, and training and simulation solutions.

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