Leonardo DRS (NASDAQ:DRS) Shares Down 3.9% – Time to Sell?

Leonardo DRS, Inc. (NASDAQ:DRS) shares fell 3.9% during trading on Tuesday . The stock traded as low as $42.18 and last traded at $42.99. 265,468 shares were traded during mid-day trading, a decline of 65% from the average session volume of 752,655 shares. The stock had previously closed at $44.73.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on DRS. BTIG Research set a $49.00 target price on Leonardo DRS and gave the company a “buy” rating in a research note on Monday, May 5th. JPMorgan Chase & Co. lifted their price objective on shares of Leonardo DRS from $33.00 to $48.00 and gave the stock a “neutral” rating in a research report on Monday, June 16th. Truist Financial boosted their price objective on shares of Leonardo DRS from $37.00 to $40.00 and gave the stock a “buy” rating in a research note on Thursday, April 17th. Morgan Stanley lifted their price target on shares of Leonardo DRS from $34.00 to $44.00 and gave the stock an “equal weight” rating in a report on Tuesday, May 6th. Finally, Bank of America raised Leonardo DRS from a “neutral” rating to a “buy” rating and set a $40.00 price target on the stock in a research report on Friday, March 7th. Two analysts have rated the stock with a hold rating and four have given a buy rating to the company. Based on data from MarketBeat, Leonardo DRS has an average rating of “Moderate Buy” and a consensus target price of $43.50.

Leonardo DRS Trading Down 3.3%

The company has a current ratio of 2.02, a quick ratio of 1.64 and a debt-to-equity ratio of 0.13. The stock has a 50-day simple moving average of $41.18 and a 200 day simple moving average of $35.89. The company has a market cap of $11.50 billion, a price-to-earnings ratio of 49.70, a PEG ratio of 2.55 and a beta of 0.63.

Leonardo DRS (NASDAQ:DRS) last issued its earnings results on Thursday, May 1st. The company reported $0.20 EPS for the quarter, beating analysts’ consensus estimates of $0.17 by $0.03. Leonardo DRS had a return on equity of 10.63% and a net margin of 7.00%. The firm had revenue of $799.00 million for the quarter, compared to analyst estimates of $736.72 million. During the same quarter in the prior year, the firm earned $0.14 earnings per share. Leonardo DRS’s revenue for the quarter was up 16.1% on a year-over-year basis. As a group, equities research analysts predict that Leonardo DRS, Inc. will post 1.04 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Investors of record on Thursday, May 22nd were given a dividend of $0.09 per share. The ex-dividend date was Thursday, May 22nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.83%. Leonardo DRS’s dividend payout ratio is presently 41.38%.

Insiders Place Their Bets

In related news, Director David W. Carey sold 6,438 shares of the firm’s stock in a transaction on Friday, June 13th. The shares were sold at an average price of $45.94, for a total transaction of $295,761.72. Following the sale, the director now owns 23,882 shares in the company, valued at approximately $1,097,139.08. This trade represents a 21.23% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, COO John Baylouny sold 3,529 shares of the company’s stock in a transaction dated Tuesday, April 8th. The stock was sold at an average price of $31.96, for a total transaction of $112,786.84. Following the completion of the transaction, the chief operating officer now owns 137,283 shares of the company’s stock, valued at approximately $4,387,564.68. This trade represents a 2.51% decrease in their position. The disclosure for this sale can be found here. 0.12% of the stock is owned by insiders.

Institutional Trading of Leonardo DRS

Institutional investors and hedge funds have recently made changes to their positions in the business. Steward Partners Investment Advisory LLC grew its stake in Leonardo DRS by 233.3% in the 4th quarter. Steward Partners Investment Advisory LLC now owns 1,000 shares of the company’s stock valued at $32,000 after acquiring an additional 700 shares during the period. Nisa Investment Advisors LLC grew its position in shares of Leonardo DRS by 92.3% in the first quarter. Nisa Investment Advisors LLC now owns 1,273 shares of the company’s stock valued at $42,000 after purchasing an additional 611 shares during the period. JTC Employer Solutions Trustee Ltd acquired a new stake in shares of Leonardo DRS in the first quarter valued at about $46,000. BI Asset Management Fondsmaeglerselskab A S purchased a new stake in shares of Leonardo DRS during the first quarter worth about $50,000. Finally, Twin Tree Management LP acquired a new position in shares of Leonardo DRS during the 1st quarter worth about $58,000. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

About Leonardo DRS

Leonardo DRS, Inc, together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.