Leidos (NYSE:LDOS) Stock Price Down 7.5% – Here’s What Happened

Leidos Holdings, Inc. (NYSE:LDOS)’s share price fell 7.5% during mid-day trading on Tuesday . The stock traded as low as $165.00 and last traded at $163.0130. 1,192,800 shares traded hands during mid-day trading, an increase of 24% from the average session volume of 960,523 shares. The stock had previously closed at $176.30.

More Leidos News

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Q4 profit beat: non‑GAAP EPS of $2.76 topped expectations, showing margin improvement and driving better-than-year-ago earnings. Leidos (LDOS) Surpasses Q4 Earnings Estimates
• Positive Sentiment: Raised FY‑2026 guidance: management set EPS guidance of 12.050–12.450 and revenue guidance of $17.5–17.9B, both above consensus — a forward-looking signal that management expects recovery and growth. Leidos Posts Strong Fourth Quarter and Fiscal Year 2025 Results
• Positive Sentiment: Strategic M&A: Leidos agreed to acquire Entrust for about $2.4B to expand its energy business and support the NorthStar 2030 growth plan — a value‑creating growth move if integration goes smoothly. Defense Giant Leidos Delivers Record Cash Flow, Secures $2.4B Acquisition
• Positive Sentiment: Strong cash flow and bookings: record annual cash from operations and a Q4 book‑to‑bill of ~1.3 suggest healthy backlog and execution. Leidos Posts Strong Fourth Quarter and Fiscal Year 2025 Results
• Neutral Sentiment: Dividend declared: quarterly payout of $0.43 (announced) provides modest income support but is not a major catalyst. Leidos Reports Strong 2025 Results and Dividend Declaration
• Negative Sentiment: Revenue miss and shutdown impact: Q4 revenue of ~$4.21B fell short of estimates and was down year‑over‑year; management cited the six‑week U.S. government shutdown as a primary reason for weaker orders and revenue timing. Leidos misses quarterly revenue estimates on government shutdown impact
• Negative Sentiment: Market reaction: despite the positives, investors sold on the revenue miss and near‑term uncertainty (shutdown effects and M&A execution risk), driving a notable intraday decline and above‑average volume. Leidos Stock Slides As Government Shutdown, Weak Outlook Overshadow Record Profits

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on the stock. Citigroup lifted their price target on shares of Leidos from $218.00 to $232.00 and gave the company a “buy” rating in a report on Tuesday, January 13th. Bank of America lifted their target price on shares of Leidos from $200.00 to $235.00 and gave the company a “buy” rating in a research note on Friday, November 7th. Cantor Fitzgerald upped their target price on shares of Leidos from $185.00 to $225.00 and gave the stock an “overweight” rating in a report on Friday, October 31st. Zacks Research cut Leidos from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 23rd. Finally, UBS Group set a $204.00 price objective on Leidos in a research report on Thursday, January 15th. Nine research analysts have rated the stock with a Buy rating and five have issued a Hold rating to the stock. According to data from MarketBeat, Leidos currently has a consensus rating of “Moderate Buy” and an average target price of $213.09.

Leidos Stock Down 8.0%

The company has a quick ratio of 1.50, a current ratio of 1.62 and a debt-to-equity ratio of 0.94. The stock has a market capitalization of $20.74 billion, a P/E ratio of 15.13, a PEG ratio of 1.23 and a beta of 0.59. The company has a fifty day moving average price of $187.52 and a 200-day moving average price of $186.68.

Leidos (NYSE:LDOS) last released its quarterly earnings results on Tuesday, February 17th. The aerospace company reported $2.76 earnings per share for the quarter, beating the consensus estimate of $2.57 by $0.19. Leidos had a return on equity of 33.02% and a net margin of 8.11%.The business had revenue of $4.21 billion during the quarter, compared to analysts’ expectations of $4.31 billion. During the same quarter last year, the business posted $2.37 EPS. The firm’s revenue for the quarter was down 3.6% compared to the same quarter last year. Leidos has set its FY 2026 guidance at 12.050-12.450 EPS. As a group, research analysts forecast that Leidos Holdings, Inc. will post 10.62 EPS for the current fiscal year.

Leidos Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 31st. Shareholders of record on Monday, March 16th will be given a dividend of $0.43 per share. The ex-dividend date is Monday, March 16th. This represents a $1.72 annualized dividend and a yield of 1.1%. Leidos’s dividend payout ratio (DPR) is 16.04%.

Insider Activity at Leidos

In other news, insider Elizabeth A. Porter sold 3,000 shares of the business’s stock in a transaction dated Tuesday, January 20th. The shares were sold at an average price of $192.21, for a total value of $576,630.00. Following the sale, the insider directly owned 38,575 shares in the company, valued at $7,414,500.75. The trade was a 7.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. 0.96% of the stock is owned by insiders.

Institutional Investors Weigh In On Leidos

Several hedge funds and other institutional investors have recently modified their holdings of the business. Wedmont Private Capital grew its position in Leidos by 4.6% in the 4th quarter. Wedmont Private Capital now owns 1,171 shares of the aerospace company’s stock valued at $230,000 after acquiring an additional 52 shares during the last quarter. Harbor Capital Advisors Inc. boosted its stake in shares of Leidos by 2.7% during the third quarter. Harbor Capital Advisors Inc. now owns 2,203 shares of the aerospace company’s stock valued at $416,000 after purchasing an additional 57 shares during the period. 44 Wealth Management LLC grew its holdings in shares of Leidos by 1.0% in the third quarter. 44 Wealth Management LLC now owns 5,500 shares of the aerospace company’s stock worth $1,039,000 after purchasing an additional 57 shares during the last quarter. Personal CFO Solutions LLC increased its stake in Leidos by 2.0% in the 2nd quarter. Personal CFO Solutions LLC now owns 2,974 shares of the aerospace company’s stock worth $469,000 after buying an additional 59 shares during the period. Finally, Beacon Pointe Advisors LLC increased its stake in Leidos by 3.7% in the 2nd quarter. Beacon Pointe Advisors LLC now owns 1,639 shares of the aerospace company’s stock worth $259,000 after buying an additional 59 shares during the period. 76.12% of the stock is currently owned by hedge funds and other institutional investors.

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.