Leidos Holdings, Inc. (NYSE:LDOS – Get Free Report)’s share price gapped down prior to trading on Tuesday. The stock had previously closed at $144.16, but opened at $133.77. Leidos shares last traded at $136.3740, with a volume of 297,595 shares changing hands.
Key Headlines Impacting Leidos
Here are the key news stories impacting Leidos this week:
- Positive Sentiment: Strong earnings and cash generation: Leidos reported third-quarter adjusted EPS of $3.62, well above the $3.04 consensus and up from $3.05 a year earlier. Revenue increased 4% year over year to approximately $4.6 billion, while adjusted EBITDA reached $644 million, operating cash flow was $523 million and free cash flow was $476 million. Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
- Positive Sentiment: Full-year outlook enhanced: Management increased its full-year guidance, signaling confidence in continued operating momentum and supporting the investment case despite the mixed revenue result. Leidos Delivers Strong Third Quarter and Enhances Full-Year Guidance
- Positive Sentiment: Defense growth opportunity: Leidos is mobilizing suppliers to support production of thousands of low-cost containerized and AGM-190A Havoc Spear cruise missiles. The initiative could strengthen its long-term defense pipeline, although near-term financial impact was not specified. Leidos mobilizes supply chain to scale production of thousands of U.S. cruise missiles
- Positive Sentiment: Dividend increased: Leidos raised its quarterly dividend 4.7% to $0.45 per share, providing an annualized payout of $1.80. Leidos dividend announcement
- Negative Sentiment: Revenue missed expectations: Quarterly revenue of $4.63 billion was below analysts’ $4.71 billion estimate. This top-line miss may be driving the negative stock reaction, despite the sizable EPS beat. Leidos Q3 Earnings: Key Metrics Versus Estimates
Analysts Set New Price Targets
A number of equities analysts have recently weighed in on LDOS shares. BNP Paribas Exane upped their price objective on Leidos from $165.00 to $175.00 and gave the stock an “outperform” rating in a research note on Wednesday, August 5th. Robert W. Baird set a $150.00 target price on Leidos in a research note on Wednesday, August 5th. Citigroup lowered their price target on Leidos from $161.00 to $141.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Wells Fargo & Company set a $165.00 price target on Leidos in a report on Monday, August 17th. Finally, The Goldman Sachs Group dropped their price target on Leidos from $152.00 to $132.00 and set a “neutral” rating for the company in a research note on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, four have issued a Buy rating and ten have issued a Hold rating to the company’s stock. According to MarketBeat.com, Leidos has a consensus rating of “Hold” and a consensus price target of $150.85.
View Our Latest Stock Report on LDOS
Leidos Price Performance
The firm has a market capitalization of $17.51 billion, a P/E ratio of 13.03, a price-to-earnings-growth ratio of 1.55 and a beta of 0.55. The firm has a 50 day moving average price of $129.38 and a 200-day moving average price of $141.34. The company has a current ratio of 1.63, a quick ratio of 1.60 and a debt-to-equity ratio of 1.13.
Leidos (NYSE:LDOS – Get Free Report) last released its earnings results on Monday, November 2nd. The aerospace company reported $3.62 EPS for the quarter, beating analysts’ consensus estimates of $3.04 by $0.58. The firm had revenue of $4.63 billion for the quarter, compared to analysts’ expectations of $4.71 billion. Leidos had a return on equity of 30.81% and a net margin of 7.80%. The company’s quarterly revenue was up 3.6% on a year-over-year basis. During the same quarter in the prior year, the firm posted $3.05 earnings per share. On average, analysts expect that Leidos Holdings, Inc. will post 12.38 earnings per share for the current year.
Leidos Increases Dividend
The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be given a $0.45 dividend. This represents a $1.80 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Tuesday, December 15th. This is a positive change from Leidos’s previous quarterly dividend of $0.43. Leidos’s dividend payout ratio is presently 16.04%.
Leidos declared that its board has approved a stock buyback program on Friday, July 31st that authorizes the company to repurchase 20,000,000 shares. This repurchase authorization authorizes the aerospace company to buy shares of its stock through open market purchases. Share repurchase programs are often an indication that the company’s board believes its stock is undervalued.
Insiders Place Their Bets
In other Leidos news, Director Gary May sold 1,000 shares of Leidos stock in a transaction dated Tuesday, September 1st. The stock was sold at an average price of $140.85, for a total value of $140,850.00. Following the transaction, the director owned 10,204 shares in the company, valued at $1,437,233.40. The trade was a 8.93% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Noel B. Geer sold 10,000 shares of the business’s stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $140.66, for a total transaction of $1,406,600.00. Following the completion of the transaction, the director owned 34,274 shares of the company’s stock, valued at $4,820,980.84. This represents a 22.59% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Corporate insiders own 0.77% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently modified their holdings of the company. Western Wealth Management LLC purchased a new stake in Leidos in the first quarter valued at $42,000. Kelleher Financial Advisors acquired a new position in Leidos in the second quarter valued at $28,000. Cedar Mountain Advisors LLC grew its holdings in shares of Leidos by 5,620.0% during the first quarter. Cedar Mountain Advisors LLC now owns 286 shares of the aerospace company’s stock worth $44,000 after purchasing an additional 281 shares during the last quarter. Fortitude Family Office LLC grew its holdings in shares of Leidos by 273.7% during the third quarter. Fortitude Family Office LLC now owns 370 shares of the aerospace company’s stock worth $45,000 after purchasing an additional 271 shares during the last quarter. Finally, N.E.W. Advisory Services LLC purchased a new position in shares of Leidos during the second quarter worth about $41,000. Hedge funds and other institutional investors own 76.12% of the company’s stock.
Leidos Company Profile
Leidos Holdings, Inc (NYSE: LDOS) is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.
The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.
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