Leonardo DRS (NASDAQ:DRS) Trading 8.7% Higher Following Earnings Beat

Leonardo DRS, Inc. (NASDAQ:DRS) shares rose 8.7% on Tuesday following a stronger than expected earnings report. The stock traded as high as $40.89 and last traded at $41.4560. Approximately 260,701 shares changed hands during trading, a decline of 78% from the average daily volume of 1,185,880 shares. The stock had previously closed at $38.14.

The company reported $0.42 EPS for the quarter, topping the consensus estimate of $0.37 by $0.05. Leonardo DRS had a net margin of 7.43% and a return on equity of 11.37%. During the same quarter in the prior year, the business posted $0.38 earnings per share. The firm’s revenue was up 8.1% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS.

Wall Street Analysts Forecast Growth

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

Insiders Place Their Bets

In other news, CFO Michael Dippold sold 10,588 shares of the business’s stock in a transaction dated Monday, January 5th. The stock was sold at an average price of $37.00, for a total transaction of $391,756.00. Following the sale, the chief financial officer directly owned 42,952 shares in the company, valued at approximately $1,589,224. The trade was a 19.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, 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 transaction of $45,721.00. Following the completion of 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 position. 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

Large investors have recently modified their holdings of the business. First Trust Advisors LP lifted its holdings in shares of Leonardo DRS by 116.8% during 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 during the period. Norges Bank acquired a new position in Leonardo DRS during the 4th quarter worth about $37,481,000. Millennium Management LLC lifted its holdings in Leonardo DRS by 152.1% during the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock worth $80,639,000 after buying an additional 1,071,708 shares during the period. AQR Capital Management LLC grew its position in shares of Leonardo DRS by 528.6% in the 3rd quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock valued at $56,000,000 after buying an additional 1,070,870 shares during the last quarter. Finally, Invesco Ltd. increased its stake in shares of Leonardo DRS by 30.1% in the second quarter. Invesco Ltd. now owns 3,768,160 shares of the company’s stock valued at $175,144,000 after buying an additional 870,772 shares during the period. Institutional investors own 18.76% of the company’s stock.

Leonardo DRS Trading Up 10.1%

The company has a quick ratio of 1.63, a current ratio of 2.00 and a debt-to-equity ratio of 0.12. The company has a market cap of $11.17 billion, a price-to-earnings ratio of 43.04, a PEG ratio of 1.99 and a beta of 0.45. The firm has a 50 day moving average price of $38.35 and a two-hundred day moving average price of $38.97.

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.