Leidos (NYSE:LDOS) Shares Gap Up After Better-Than-Expected Earnings

Leidos Holdings, Inc. (NYSE:LDOS)’s share price gapped up prior to trading on Tuesday following a stronger than expected earnings report. 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 changing hands.

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 the consensus estimate of $3.82 billion. Leidos had a return on equity of 22.92% and a net margin of 1.29%. The firm’s quarterly revenue was up 7.5% compared to the same quarter last year. During the same quarter in the previous year, the business earned $1.47 earnings per share.

Leidos Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Friday, June 28th. Shareholders of record on Friday, June 14th will be given a dividend of $0.38 per share. The ex-dividend date is Friday, June 14th. This represents a $1.52 dividend on an annualized basis and a yield of 1.11%. Leidos’s dividend payout ratio (DPR) is 107.04%.

Analyst Ratings Changes

A number of brokerages have recently commented on LDOS. Robert W. Baird raised their target price on shares of Leidos from $133.00 to $145.00 and gave the company an “outperform” rating in a research note on Wednesday, February 14th. Argus boosted their price objective on Leidos from $120.00 to $145.00 and gave the stock a “buy” rating in a research note on Wednesday, March 20th. Barclays upgraded Leidos from an “equal weight” rating to an “overweight” rating in a research note on Friday, January 5th. TheStreet upgraded Leidos from a “c” rating to a “b” rating in a report on Tuesday, February 13th. Finally, Wells Fargo & Company lifted their price objective on shares of Leidos from $137.00 to $147.00 and gave the company an “overweight” rating in a research note on Thursday, April 4th. Two equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $132.42.

Insider Transactions at Leidos

In related news, Director David G. Fubini sold 7,874 shares of Leidos stock in a transaction dated 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 completion of the transaction, the director now directly owns 14,696 shares in the company, valued at $1,879,471.44. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, Director Gary Stephen May sold 2,745 shares of the firm’s stock in a transaction dated Wednesday, February 21st. The shares were sold at an average price of $124.49, for a total value of $341,725.05. Following the transaction, the director now directly owns 11,352 shares in the company, valued at approximately $1,413,210.48. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director David G. Fubini sold 7,874 shares of Leidos stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $127.89, for a total transaction of $1,007,005.86. Following the completion of the transaction, the director now directly owns 14,696 shares of the company’s stock, valued at $1,879,471.44. 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 large investors have recently bought and sold shares of LDOS. Norges Bank acquired a new stake in shares of Leidos during the 4th quarter worth approximately $202,191,000. Pzena Investment Management LLC increased its position in Leidos by 320.1% in the third quarter. Pzena Investment Management LLC now owns 1,246,768 shares of the aerospace company’s stock worth $114,902,000 after buying an additional 949,955 shares during the period. Balyasny Asset Management L.P. boosted its holdings in shares of Leidos by 9,164.4% during the fourth quarter. Balyasny Asset Management L.P. now owns 578,561 shares of the aerospace company’s stock valued at $62,623,000 after acquiring an additional 572,316 shares during the period. FMR LLC grew its position in shares of Leidos by 36.1% during the third quarter. FMR LLC now owns 1,808,666 shares of the aerospace company’s stock worth $166,687,000 after acquiring an additional 479,906 shares during the last quarter. Finally, Wellington Management Group LLP grew 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 worth $429,501,000 after acquiring an additional 272,090 shares during the last quarter. Institutional investors own 76.12% of the company’s stock.

Leidos Stock Performance

The company has a debt-to-equity ratio of 1.10, a quick ratio of 1.24 and a current ratio of 1.34. The stock’s fifty day moving average is $127.74 and its two-hundred day moving average is $114.22. The firm has a market cap of $18.44 billion, a price-to-earnings ratio of 92.69, a PEG ratio of 1.80 and a beta of 0.70.

Leidos Company Profile

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.