Leonardo DRS (NASDAQ:DRS) Stock Breaks Above 50 Day Moving Average – Here’s What Happened

Leonardo DRS, Inc. (NASDAQ:DRS)’s share price crossed above its 50-day moving average during trading on Monday. The stock has a 50-day moving average of $36.32 and traded as high as $36.45. Leonardo DRS shares last traded at $36.41, with a volume of 2,001,181 shares.

Leonardo DRS News Roundup

These are some of the DRS news items that stood out recently:

• Positive Sentiment: Leonardo DRS won a three-year NAVAIR contract for low-rate production of its DAIRCM aircraft-survivability system. The system is intended to protect military crews in contested environments, including aboard the Marine Corps’ UH-1Y and AH-1Z helicopters. The award adds production work and supports the company’s defense-business outlook; no contract value was specified. Leonardo DRS Awarded NAVAIR Contract to Produce DAIRCM Aircraft Survivability System
• Neutral Sentiment: Coverage also highlighted Leonardo DRS’s support for the Army’s DUTCH thermal infrared-sensing effort. The available report provides limited detail on the scope or financial impact, so the near-term stock effect is unclear. Leonardo DRS Aids Army’s DUTCH Thermal IR Sensing
• Negative Sentiment: JPMorgan cut its price target to $48 from $53 and maintained a neutral rating. Although the revised target remains above the cited share price, the reduction may weigh on sentiment. JPMorgan price-target update

Wall Street Analyst Weigh In

Several analysts have weighed in on DRS shares. Weiss Ratings raised Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, November 4th. JPMorgan Chase & Co. decreased their price objective on shares of Leonardo DRS from $53.00 to $48.00 and set a “neutral” rating on the stock in a research report on Wednesday. BTIG Research reissued a “buy” rating and issued a $50.00 price target on shares of Leonardo DRS in a research note on Monday, November 2nd. Oppenheimer began coverage on shares of Leonardo DRS in a report on Thursday, October 22nd. They issued an “outperform” rating and a $45.00 price target on the stock. Finally, Morgan Stanley increased their price target on shares of Leonardo DRS from $44.00 to $45.00 and gave the stock an “equal weight” rating in a report on Monday, November 2nd. Three equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and two have assigned a Hold rating to the company. According to data from MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $50.88.

Leonardo DRS Stock Performance

The company has a market cap of $9.77 billion, a P/E ratio of 24.52, a price-to-earnings-growth ratio of 1.95 and a beta of 0.37. The company’s fifty day moving average is $36.27 and its 200 day moving average is $41.95. The company has a current ratio of 1.88, a quick ratio of 1.56 and a debt-to-equity ratio of 0.06.

Leonardo DRS (NASDAQ:DRS) last released its earnings results on Thursday, October 29th. The company reported $0.46 earnings per share for the quarter, beating analysts’ consensus estimates of $0.35 by $0.11. Leonardo DRS had a return on equity of 14.33% and a net margin of 9.40%. The company had revenue of $1.07 billion during the quarter, compared to analyst estimates of $1.03 billion. During the same quarter in the previous year, the company posted $0.29 EPS. Leonardo DRS’s revenue for the quarter was up 11.0% on a year-over-year basis. As a group, equities analysts predict that Leonardo DRS, Inc. will post 1.52 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be paid a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, November 12th. Leonardo DRS’s dividend payout ratio is 26.47%.

Insider Activity at Leonardo DRS

In related news, CFO Michael Dippold sold 20,317 shares of the company’s stock in a transaction on Wednesday, September 2nd. The shares were sold at an average price of $37.18, for a total transaction of $755,386.06. Following the completion of the sale, the chief financial officer directly owned 35,143 shares in the company, valued at $1,306,616.74. This represents a 36.63% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.25% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently bought and sold shares of the business. Focus Advisor Solutions LLC raised its holdings in shares of Leonardo DRS by 43.8% during the third quarter. Focus Advisor Solutions LLC now owns 17,753 shares of the company’s stock valued at $650,000 after acquiring an additional 5,406 shares in the last quarter. Stephens Investment Management Group LLC boosted its holdings in Leonardo DRS by 0.3% in the third quarter. Stephens Investment Management Group LLC now owns 2,410,219 shares of the company’s stock valued at $88,286,000 after acquiring an additional 8,318 shares in the last quarter. Global Retirement Partners LLC boosted its holdings in Leonardo DRS by 2,054.6% in the third quarter. Global Retirement Partners LLC now owns 15,750 shares of the company’s stock valued at $577,000 after acquiring an additional 15,019 shares in the last quarter. Edgestream Partners L.P. purchased a new position in Leonardo DRS during the 3rd quarter valued at $6,258,000. Finally, Hantz Financial Services Inc. increased its position in Leonardo DRS by 69.2% during the 3rd quarter. Hantz Financial Services Inc. now owns 2,539 shares of the company’s stock valued at $93,000 after purchasing an additional 1,038 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.

Leonardo DRS Company Profile

Leonardo DRS, Inc. is a U.S.-based defense technology company and a subsidiary of the Italian aerospace and defense group Leonardo S.p.A. It develops and supplies advanced products and services for the U.S. military and other government and commercial customers. The company’s offerings include naval power and propulsion systems, combat and mission systems, electro-optical and infrared sensors, electronic warfare and communications equipment, and computing and networking technologies. Its products support operations across maritime, land, air and space domains.