Leonardo DRS (NASDAQ:DRS) Shares Gap Up – Here’s Why

Leonardo DRS, Inc. (NASDAQ:DRS) shares gapped up prior to trading on Thursday . The stock had previously closed at $37.20, but opened at $38.95. Leonardo DRS shares last traded at $39.8620, with a volume of 262,299 shares trading hands.

Analysts Set New Price Targets

DRS has been the topic of a number of recent analyst reports. Weiss Ratings reissued a “buy (b-)” rating on shares of Leonardo DRS in a research report on Monday, December 29th. Truist Financial reduced their target price on Leonardo DRS from $49.00 to $47.00 and set a “buy” rating for the company in a research note on Thursday, October 30th. Morgan Stanley set a $40.00 target price on shares of Leonardo DRS in a research report on Tuesday, December 16th. Canaccord Genuity Group restated a “buy” rating and set a $50.00 price objective on shares of Leonardo DRS in a research note on Thursday, October 30th. Finally, Zacks Research downgraded Leonardo DRS from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 30th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average target price of $46.14.

Leonardo DRS Price Performance

The company has a debt-to-equity ratio of 0.12, a quick ratio of 1.63 and a current ratio of 2.00. The company has a market cap of $10.71 billion, a price-to-earnings ratio of 41.14, a PEG ratio of 1.86 and a beta of 0.44. The business has a fifty day moving average price of $34.50 and a 200 day moving average price of $40.24.

Leonardo DRS (NASDAQ:DRS) last released its earnings results on Wednesday, October 29th. The company reported $0.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.28 by $0.01. The firm had revenue of $960.00 million for the quarter, compared to analysts’ expectations of $924.79 million. Leonardo DRS had a return on equity of 11.37% and a net margin of 7.43%.The business’s revenue for the quarter was up 18.2% on a year-over-year basis. During the same quarter in the previous year, the business posted $0.24 earnings per share. Leonardo DRS has set its FY 2025 guidance at 1.070-1.120 EPS. As a group, research analysts anticipate that Leonardo DRS, Inc. will post 1.04 earnings per share for the current year.

Leonardo DRS Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Tuesday, December 2nd. Shareholders of record on Tuesday, November 18th were given a $0.09 dividend. The ex-dividend date was Tuesday, November 18th. This represents a $0.36 dividend on an annualized basis and a yield of 0.9%. Leonardo DRS’s dividend payout ratio (DPR) is currently 36.73%.

Insider Transactions at Leonardo DRS

In other news, COO John Baylouny sold 8,481 shares of Leonardo DRS stock in a transaction dated Wednesday, October 15th. The stock was sold at an average price of $43.69, for a total transaction of $370,534.89. Following the sale, the chief operating officer directly owned 106,007 shares of the company’s stock, valued at approximately $4,631,445.83. This trade represents a 7.41% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Also, EVP Sally Wallace sold 1,300 shares of the company’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $35.17, for a total value of $45,721.00. Following the completion of the transaction, the executive vice president directly owned 58,353 shares of the company’s stock, valued at $2,052,275.01. This represents a 2.18% decrease in their position. The SEC filing for this sale provides additional information. Over the last ninety days, insiders sold 20,369 shares of company stock worth $808,012. Corporate insiders own 0.34% of the company’s stock.

Hedge Funds Weigh In On Leonardo DRS

A number of hedge funds have recently modified their holdings of DRS. First Trust Advisors LP increased its holdings in Leonardo DRS by 116.8% in the third quarter. First Trust Advisors LP now owns 3,661,214 shares of the company’s stock valued at $166,219,000 after purchasing an additional 1,972,596 shares during the period. Millennium Management LLC grew its position in shares of Leonardo DRS by 152.1% in the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock valued at $80,639,000 after buying an additional 1,071,708 shares during the last quarter. AQR Capital Management LLC increased its stake in shares of Leonardo DRS by 528.6% in the third quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock valued at $56,000,000 after buying an additional 1,070,870 shares during the period. Norges Bank acquired a new stake in shares of Leonardo DRS in the second quarter valued at about $44,336,000. Finally, Invesco Ltd. raised its position in shares of Leonardo DRS by 30.1% during the second quarter. Invesco Ltd. now owns 3,768,160 shares of the company’s stock worth $175,144,000 after acquiring an additional 870,772 shares during the last quarter. Institutional investors and hedge funds 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.