Carderock Capital Management Inc. Sells 29,701 Shares of Leidos Holdings, Inc. $LDOS

Carderock Capital Management Inc. decreased its holdings in Leidos Holdings, Inc. (NYSE:LDOS) by 82.6% during the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The firm owned 6,251 shares of the aerospace company’s stock after selling 29,701 shares during the period. Carderock Capital Management Inc.’s holdings in Leidos were worth $644,000 at the end of the most recent quarter.

Several other hedge funds and other institutional investors also recently made changes to their positions in the business. Redwood Investment Management LLC raised its stake in Leidos by 116.0% in the 1st quarter. Redwood Investment Management LLC now owns 11,235 shares of the aerospace company’s stock valued at $1,747,000 after acquiring an additional 6,033 shares during the period. Pacer Advisors Inc. raised its position in shares of Leidos by 30.5% in the first quarter. Pacer Advisors Inc. now owns 567,601 shares of the aerospace company’s stock valued at $88,273,000 after purchasing an additional 132,683 shares during the period. DV Trading LLC raised its position in shares of Leidos by 300.0% in the first quarter. DV Trading LLC now owns 1,600 shares of the aerospace company’s stock valued at $249,000 after purchasing an additional 1,200 shares during the period. Glenmede Trust Co. NA lifted its stake in shares of Leidos by 124.3% during the 1st quarter. Glenmede Trust Co. NA now owns 5,042 shares of the aerospace company’s stock worth $784,000 after buying an additional 2,794 shares during the last quarter. Finally, Western Wealth Management LLC bought a new stake in shares of Leidos during the 1st quarter worth about $42,000. 76.12% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

A number of brokerages recently commented on LDOS. The Goldman Sachs Group decreased their price target on shares of Leidos from $171.00 to $152.00 and set a “neutral” rating on the stock in a research note on Tuesday, July 14th. Weiss Ratings cut Leidos from a “hold (c+)” rating to a “hold (c)” rating in a report on Monday, June 8th. Jefferies Financial Group reduced their price objective on Leidos from $140.00 to $110.00 and set a “hold” rating for the company in a report on Wednesday, July 1st. Wall Street Zen upgraded Leidos from a “hold” rating to a “buy” rating in a research note on Thursday, July 16th. Finally, Truist Financial dropped their price target on Leidos from $195.00 to $160.00 and set a “buy” rating for the company in a report on Friday, July 10th. One investment 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’s stock. Based on data from MarketBeat.com, Leidos presently has an average rating of “Hold” and a consensus price target of $163.80.

Key Headlines Impacting Leidos

Here are the key news stories impacting Leidos this week:

• Positive Sentiment: Leidos reported second-quarter revenue of $4.56 billion, up 7.2% year over year and ahead of the $4.44 billion consensus estimate. Non-GAAP diluted EPS was $3.26, exceeding expectations of approximately $2.91 and rising from $3.21 a year earlier. Leidos Delivers Strong Second Quarter and Enhances Full-Year Guidance
• Positive Sentiment: Management raised the low end of its fiscal 2026 revenue outlook to $18.2 billion, maintaining a range of $18.2 billion to $18.4 billion, and increased non-GAAP EPS guidance to $12.20-$12.50. Expected operating cash flow was lifted to approximately $1.85 billion. Leidos’ Q2 Earnings Surpass Estimates, Revenues Improve Y/Y
• Positive Sentiment: Cash generation was a major strength: operating cash flow reached $793 million and non-GAAP free cash flow totaled $761 million. Net bookings were $4.9 billion, producing a 1.1 book-to-bill ratio, while backlog stood at $48.7 billion, including $10.2 billion funded.
• Positive Sentiment: Demand remained healthy across defense technology, homeland security, intelligence, energy infrastructure and air-traffic-management programs. Recent contract developments include work involving missile-defense satellite infrared sensors and a U.S. Navy intelligence modernization contract worth up to $64.8 million. Leidos Selected to Provide Infrared Sensors
• Neutral Sentiment: Reported net income fell to $356 million, or $2.81 per share, from $393 million, or $3.01 per share, a decline attributed in part to acquisition and joint-venture costs. However, adjusted EBITDA was $631 million, with a 13.8% margin.

Insiders Place Their Bets

In other Leidos news, Director Gary Stephen May sold 1,484 shares of Leidos stock in a transaction on Thursday, May 7th. The stock was sold at an average price of $132.75, for a total value of $197,001.00. Following the completion of the transaction, the director directly owned 10,137 shares of the company’s stock, valued at $1,345,686.75. The trade was a 12.77% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. 0.77% of the stock is owned by corporate insiders.

Leidos Price Performance

NYSE:LDOS opened at $130.50 on Wednesday. Leidos Holdings, Inc. has a 52 week low of $98.86 and a 52 week high of $205.77. The company has a debt-to-equity ratio of 1.19, a quick ratio of 1.29 and a current ratio of 1.40. The firm’s 50-day simple moving average is $113.27 and its 200 day simple moving average is $145.47. The firm has a market cap of $16.42 billion, a price-to-earnings ratio of 11.95, a P/E/G ratio of 1.74 and a beta of 0.52.

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

Leidos Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 30th. Shareholders of record on Tuesday, September 15th will be paid a dividend of $0.43 per share. This represents a $1.72 dividend on an annualized basis and a yield of 1.3%. The ex-dividend date is Tuesday, September 15th. Leidos’s dividend payout ratio (DPR) is 15.75%.

Leidos declared that its board has approved a share buyback plan on Friday, July 31st that authorizes the company to repurchase 20,000,000 shares. This repurchase authorization authorizes the aerospace company to buy shares of its stock through open market purchases. Shares repurchase plans are typically an indication that the company’s leadership believes its shares are undervalued.

Leidos Company Profile

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.