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

Shares of Leonardo DRS, Inc. (NASDAQ:DRS) gapped up before the market opened 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.

Analyst Ratings Changes

DRS has been the subject of several analyst reports. Zacks Research downgraded Leonardo DRS from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 30th. 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. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Leonardo DRS in a report on Monday, December 29th. Morgan Stanley set a $40.00 target price on shares of Leonardo DRS in a research note on Tuesday, December 16th. Finally, Truist Financial set a $54.00 price target on shares of Leonardo DRS in a research report on Friday. Six investment analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the stock. According to MarketBeat, Leonardo DRS presently has an average rating of “Moderate Buy” and an average target price of $47.14.

Leonardo DRS Stock Performance

The firm has a market capitalization of $10.90 billion, a PE ratio of 41.83, a price-to-earnings-growth ratio of 1.93 and a beta of 0.44. The company has a current ratio of 2.00, a quick ratio of 1.63 and a debt-to-equity ratio of 0.12. The business’s 50 day simple moving average is $34.64 and its two-hundred day simple moving average is $40.20.

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

Leonardo DRS Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, December 2nd. Stockholders of record on Tuesday, November 18th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, November 18th. This represents a $0.36 annualized dividend and a dividend yield of 0.9%. Leonardo DRS’s dividend payout ratio is presently 36.73%.

Insider Transactions at Leonardo DRS

In related news, EVP Sally Wallace sold 1,300 shares of the firm’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 transaction, the executive vice president owned 58,353 shares of the company’s stock, valued at approximately $2,052,275.01. This trade represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. Also, CFO Michael Dippold sold 10,588 shares of the firm’s stock in a transaction on Monday, January 5th. The stock was sold at an average price of $37.00, for a total value of $391,756.00. Following the completion of the transaction, the chief financial officer directly owned 42,952 shares in the company, valued at approximately $1,589,224. This represents a 19.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 20,369 shares of company stock worth $808,012 in the last quarter. Company insiders own 0.34% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds have recently made changes to their positions in DRS. Invesco Ltd. raised its stake in Leonardo DRS by 30.1% during the 2nd 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 period. First Trust Advisors LP increased its stake in shares of Leonardo DRS by 116.8% in the third quarter. First Trust Advisors LP now owns 3,661,214 shares of the company’s stock worth $166,219,000 after purchasing an additional 1,972,596 shares in the last quarter. State Street Corp raised its position in shares of Leonardo DRS by 8.3% during the 2nd quarter. State Street Corp now owns 3,311,605 shares of the company’s stock valued at $153,923,000 after purchasing an additional 254,975 shares during the period. Van ECK Associates Corp lifted its stake in shares of Leonardo DRS by 9.3% during the 3rd quarter. Van ECK Associates Corp now owns 1,820,059 shares of the company’s stock valued at $82,631,000 after buying an additional 154,792 shares in the last quarter. Finally, Voya Investment Management LLC lifted its position in shares of Leonardo DRS by 21.3% in the third quarter. Voya Investment Management LLC now owns 1,807,025 shares of the company’s stock valued at $82,039,000 after acquiring an additional 317,294 shares in the last quarter. 18.76% of the stock is currently owned by institutional investors.

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.