Leonardo DRS (NASDAQ:DRS) Stock Price Up 5.4% – Still a Buy?

Leonardo DRS, Inc. (NASDAQ:DRS)’s share price was up 5.4% during mid-day trading on Thursday . The company traded as high as $48.82 and last traded at $48.41. 297,439 shares were traded during mid-day trading, a decline of 74% from the average session volume of 1,130,514 shares. The stock had previously closed at $45.91.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. Weiss Ratings raised shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research report on Thursday. Wall Street Zen raised shares of Leonardo DRS from a “hold” rating to a “buy” rating in a research report on Sunday, May 10th. Canaccord Genuity Group boosted their target price on shares of Leonardo DRS from $52.00 to $54.00 and gave the stock a “buy” rating in a research note on Wednesday, May 6th. Finally, Truist Financial upgraded shares of Leonardo DRS to a “strong-buy” rating in a research note on Friday, May 1st. One analyst has rated the stock with a Strong Buy rating, two have given a Buy rating and three have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, Leonardo DRS has an average rating of “Moderate Buy” and an average target price of $53.75.

Leonardo DRS Stock Performance

The firm has a fifty day simple moving average of $45.35 and a 200-day simple moving average of $43.60. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The company has a market cap of $12.83 billion, a PE ratio of 44.95, a price-to-earnings-growth ratio of 3.47 and a beta of 0.36.

Leonardo DRS (NASDAQ:DRS) last posted its earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share for the quarter, beating the consensus estimate of $0.21 by $0.05. The business had revenue of $846.00 million during the quarter, compared to the consensus estimate of $825.05 million. Leonardo DRS had a return on equity of 12.02% and a net margin of 7.85%.The business’s quarterly revenue was up 5.9% on a year-over-year basis. During the same period in the previous year, the business earned $0.20 EPS. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, research analysts forecast that Leonardo DRS, Inc. will post 1.3 EPS for the current fiscal year.

Leonardo DRS Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Tuesday, May 19th were given a dividend of $0.09 per share. The ex-dividend date of this dividend was Tuesday, May 19th. This represents a $0.36 annualized dividend and a yield of 0.7%. Leonardo DRS’s payout ratio is 33.64%.

Insiders Place Their Bets

In other news, CFO Michael Dippold sold 8,318 shares of the stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $46.48, for a total value of $386,620.64. Following the completion of the sale, the chief financial officer directly owned 55,460 shares of the company’s stock, valued at approximately $2,577,780.80. This represents a 13.04% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Pamela Morrow sold 11,545 shares of Leonardo DRS stock in a transaction on Wednesday, May 27th. The shares were sold at an average price of $45.13, for a total transaction of $521,025.85. Following the completion of the transaction, the senior vice president directly owned 10,551 shares in the company, valued at $476,166.63. The trade was a 52.25% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last three months, insiders sold 65,364 shares of company stock valued at $2,994,785. 0.25% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Quarry LP boosted its stake in shares of Leonardo DRS by 7,041.7% during the fourth quarter. Quarry LP now owns 857 shares of the company’s stock worth $29,000 after buying an additional 845 shares during the period. Leonteq Securities AG acquired a new position in Leonardo DRS in the 4th quarter valued at about $34,000. Allworth Financial LP increased its position in Leonardo DRS by 504.1% in the 3rd quarter. Allworth Financial LP now owns 882 shares of the company’s stock valued at $40,000 after acquiring an additional 736 shares during the period. Fifth Third Bancorp purchased a new stake in Leonardo DRS during the 1st quarter valued at approximately $41,000. Finally, Pilgrim Partners Asia Pte Ltd purchased a new stake in Leonardo DRS during the 4th quarter valued at approximately $46,000. 18.76% of the stock is currently owned by institutional investors and hedge funds.

About Leonardo DRS

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.