Leonardo DRS (NASDAQ:DRS) Cut to “Hold” at Wall Street Zen

Wall Street Zen downgraded shares of Leonardo DRS (NASDAQ:DRS) from a buy rating to a hold rating in a research report report published on Friday.

Other equities analysts also recently issued reports about the company. Morgan Stanley set a $40.00 price objective on Leonardo DRS in a research report on Tuesday, December 16th. Zacks Research downgraded Leonardo DRS from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Canaccord Genuity Group restated a “buy” rating and issued a $50.00 price target on shares of Leonardo DRS in a research note on Thursday, October 30th. Truist Financial set a $54.00 price objective on shares of Leonardo DRS in a report on Friday, January 9th. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Leonardo DRS in a research report on Monday, December 29th. Six research analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $47.14.

Leonardo DRS Price Performance

Shares of NASDAQ:DRS opened at $40.99 on Friday. The company has a market capitalization of $10.90 billion, a P/E ratio of 41.83, a P/E/G ratio of 2.04 and a beta of 0.44. Leonardo DRS has a 1-year low of $28.17 and a 1-year high of $49.31. The firm’s 50 day simple moving average is $35.87 and its two-hundred day simple moving average is $39.85. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.00 and a quick ratio of 1.63.

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

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, December 2nd. Investors of record on Tuesday, November 18th were issued a $0.09 dividend. The ex-dividend date of this dividend was Tuesday, November 18th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. Leonardo DRS’s dividend payout ratio (DPR) is 36.73%.

Insider Buying and Selling at Leonardo DRS

In other news, CFO Michael Dippold sold 10,588 shares of the business’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $37.00, for a total value of $391,756.00. Following the sale, the chief financial officer directly owned 42,952 shares in the company, valued at $1,589,224. The trade was a 19.78% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, EVP Sally Wallace sold 1,300 shares of the company’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $35.17, for a total transaction of $45,721.00. Following the sale, the executive vice president owned 58,353 shares in the company, valued at $2,052,275.01. This represents a 2.18% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders own 0.12% of the company’s stock.

Hedge Funds Weigh In On Leonardo DRS

A number of large investors have recently made changes to their positions in DRS. Munro Partners lifted its stake in shares of Leonardo DRS by 72.5% during the 3rd quarter. Munro Partners now owns 170,345 shares of the company’s stock worth $7,734,000 after acquiring an additional 71,590 shares during the last quarter. CWM LLC raised its holdings in shares of Leonardo DRS by 460.8% in the 3rd quarter. CWM LLC now owns 37,677 shares of the company’s stock valued at $1,711,000 after purchasing an additional 30,958 shares in the last quarter. Stephens Investment Management Group LLC raised its stake in Leonardo DRS by 20.6% in the third quarter. Stephens Investment Management Group LLC now owns 817,465 shares of the company’s stock worth $37,113,000 after buying an additional 139,531 shares in the last quarter. Catalyst Funds Management Pty Ltd increased its holdings in shares of Leonardo DRS by 275.4% in the 2nd quarter. Catalyst Funds Management Pty Ltd now owns 27,030 shares of the company’s stock valued at $1,256,000 after acquiring an additional 19,830 shares during the period. Finally, Strs Ohio raised its position in shares of Leonardo DRS by 54.2% in the 2nd quarter. Strs Ohio now owns 41,637 shares of the company’s stock worth $1,935,000 after acquiring an additional 14,637 shares in the last quarter. 18.76% of the stock is owned by hedge funds and other 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.