Leidos (NYSE:LDOS) Shares Gap Up After Earnings Beat

Leidos Holdings, Inc. (NYSE:LDOS)’s share price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $142.77, but opened at $147.51. Leidos shares last traded at $137.70, with a volume of 352,022 shares changing hands.

The aerospace company reported $2.37 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.24 by $0.13. Leidos had a net margin of 7.37% and a return on equity of 30.31%.

Leidos Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 28th. Shareholders of record on Friday, March 14th will be issued a dividend of $0.40 per share. The ex-dividend date is Friday, March 14th. This represents a $1.60 annualized dividend and a yield of 1.18%. Leidos’s payout ratio is currently 18.22%.

Analysts Set New Price Targets

Several equities analysts have recently commented on LDOS shares. Citigroup raised their price target on Leidos from $194.00 to $220.00 and gave the company a “buy” rating in a research note on Wednesday, October 30th. The Goldman Sachs Group cut shares of Leidos from a “buy” rating to a “neutral” rating and lowered their price target for the stock from $228.00 to $153.00 in a research report on Thursday, December 12th. Wells Fargo & Company cut their price objective on shares of Leidos from $205.00 to $199.00 and set an “overweight” rating on the stock in a report on Wednesday, January 8th. Truist Financial decreased their price target on shares of Leidos from $205.00 to $185.00 and set a “buy” rating for the company in a research report on Friday, November 22nd. Finally, Robert W. Baird raised their target price on shares of Leidos from $180.00 to $218.00 and gave the company an “outperform” rating in a research note on Wednesday, October 30th. Five analysts have rated the stock with a hold rating, nine have given a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $179.47.

Insider Buying and Selling at Leidos

In related news, Director Noel B. Geer purchased 2,000 shares of Leidos stock in a transaction dated Wednesday, November 20th. The stock was bought at an average cost of $161.13 per share, for a total transaction of $322,260.00. Following the transaction, the director now owns 2,000 shares in the company, valued at approximately $322,260. The trade was a ∞ increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. 0.96% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of the business. Ballentine Partners LLC grew its position in shares of Leidos by 3.5% in the third quarter. Ballentine Partners LLC now owns 1,822 shares of the aerospace company’s stock valued at $297,000 after purchasing an additional 62 shares during the period. Asahi Life Asset Management CO. LTD. increased its position in shares of Leidos by 3.2% in the third quarter. Asahi Life Asset Management CO. LTD. now owns 2,280 shares of the aerospace company’s stock worth $372,000 after acquiring an additional 70 shares in the last quarter. Verdence Capital Advisors LLC raised its stake in shares of Leidos by 4.8% in the 4th quarter. Verdence Capital Advisors LLC now owns 1,680 shares of the aerospace company’s stock valued at $242,000 after acquiring an additional 77 shares during the period. Smartleaf Asset Management LLC boosted its position in Leidos by 20.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 454 shares of the aerospace company’s stock worth $65,000 after purchasing an additional 77 shares during the period. Finally, Fifth Third Bancorp raised its position in Leidos by 3.2% in the fourth quarter. Fifth Third Bancorp now owns 2,738 shares of the aerospace company’s stock valued at $394,000 after purchasing an additional 86 shares during the period. 76.12% of the stock is owned by hedge funds and other institutional investors.

Leidos Stock Performance

The company has a quick ratio of 1.15, a current ratio of 1.23 and a debt-to-equity ratio of 0.87. The company has a market cap of $18.13 billion, a price-to-earnings ratio of 15.55, a PEG ratio of 0.92 and a beta of 0.66. The stock has a 50 day simple moving average of $149.31 and a 200 day simple moving average of $157.71.

About Leidos

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.