Leonardo DRS (NASDAQ:DRS) Reaches New 12-Month Low – What’s Next?

Leonardo DRS, Inc. (NASDAQ:DRS)’s share price reached a new 52-week low during mid-day trading on Friday. The company traded as low as $32.39 and last traded at $33.5420, with a volume of 34,398 shares. The stock had previously closed at $33.00.

Analysts Set New Price Targets

Several research firms recently weighed in on DRS. Guggenheim began coverage on shares of Leonardo DRS in a research note on Monday, September 14th. They set a “buy” rating and a $51.00 price objective on the stock. Morgan Stanley raised their target price on shares of Leonardo DRS from $44.00 to $45.00 and gave the stock an “equal weight” rating in a report on Monday. Weiss Ratings downgraded Leonardo DRS from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Thursday, October 22nd. Zacks Research upgraded Leonardo DRS from a “hold” rating to a “strong-buy” rating in a research note on Friday, October 30th. Finally, JPMorgan Chase & Co. upped their target price on Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, July 31st. Three equities research analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating and three have assigned a Hold rating to the company. Based on data from MarketBeat.com, Leonardo DRS currently has an average rating of “Buy” and a consensus target price of $51.50.

Leonardo DRS Price Performance

The company has a debt-to-equity ratio of 0.06, a current ratio of 1.88 and a quick ratio of 1.56. The company has a 50-day simple moving average of $36.46 and a two-hundred day simple moving average of $42.06. The stock has a market capitalization of $8.94 billion, a price-to-earnings ratio of 24.64, a price-to-earnings-growth ratio of 1.90 and a beta of 0.37.

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

Leonardo DRS Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, November 25th. Investors of record on Thursday, November 12th will be given a $0.09 dividend. The ex-dividend date is Thursday, November 12th. This represents a $0.36 annualized dividend and a yield of 1.1%. Leonardo DRS’s dividend payout ratio (DPR) is currently 26.47%.

Insider Buying and Selling at Leonardo DRS

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

Institutional Trading of Leonardo DRS

A number of hedge funds have recently bought and sold shares of DRS. Paragon Advisors LLC acquired a new stake in shares of Leonardo DRS in the third quarter valued at about $241,000. Kornitzer Capital Management Inc. KS increased its stake in shares of Leonardo DRS by 8.4% in the third quarter. Kornitzer Capital Management Inc. KS now owns 113,607 shares of the company’s stock worth $4,161,000 after purchasing an additional 8,848 shares during the period. Parallel Advisors LLC increased its stake in shares of Leonardo DRS by 898.9% in the third quarter. Parallel Advisors LLC now owns 6,603 shares of the company’s stock worth $242,000 after purchasing an additional 5,942 shares during the period. Kestra Advisory Services LLC acquired a new position in shares of Leonardo DRS during the 3rd quarter worth about $216,000. Finally, Covestor Ltd lifted its position in shares of Leonardo DRS by 14.7% during the 3rd quarter. Covestor Ltd now owns 3,249 shares of the company’s stock worth $119,000 after purchasing an additional 416 shares during the last quarter. 18.76% of the stock is owned by hedge funds and other institutional investors.

Leonardo DRS Company Profile

Leonardo DRS, Inc is a defense technology company that develops and supplies advanced products and systems for the U.S. military and government customers, as well as allied nations. The company operates as a subsidiary of Leonardo S.p.A. and focuses on technologies used in land, sea, air and space-related defense applications.

Its offerings include sensing and surveillance systems, electro-optical and infrared technologies, radar and electronic warfare products, network computing and communications systems, counter-uncrewed aircraft systems, force protection equipment, and naval power and propulsion systems.