Leonardo DRS (NASDAQ:DRS) Trading Down 3.9% – Here’s Why

Leonardo DRS, Inc. (NASDAQ:DRS)’s stock price traded down 3.9% during mid-day trading on Tuesday . The company traded as low as $42.18 and last traded at $42.99. 265,468 shares traded hands during mid-day trading, a decline of 65% from the average session volume of 752,655 shares. The stock had previously closed at $44.73.

Wall Street Analyst Weigh In

DRS has been the subject of several research reports. BTIG Research set a $49.00 price target on Leonardo DRS and gave the stock a “buy” rating in a research report on Monday, May 5th. Bank of America raised shares of Leonardo DRS from a “neutral” rating to a “buy” rating and set a $40.00 target price for the company in a report on Friday, March 7th. Morgan Stanley raised their price target on shares of Leonardo DRS from $34.00 to $44.00 and gave the stock an “equal weight” rating in a research note on Tuesday, May 6th. Truist Financial upped their price objective on shares of Leonardo DRS from $37.00 to $40.00 and gave the company a “buy” rating in a research note on Thursday, April 17th. Finally, JPMorgan Chase & Co. increased their price objective on shares of Leonardo DRS from $33.00 to $48.00 and gave the company a “neutral” rating in a report on Monday, June 16th. Two equities research analysts have rated the stock with a hold rating and four have assigned a buy rating to the company. According to MarketBeat.com, Leonardo DRS currently has an average rating of “Moderate Buy” and a consensus price target of $43.50.

Leonardo DRS Stock Down 3.3%

The company has a debt-to-equity ratio of 0.13, a current ratio of 2.02 and a quick ratio of 1.64. The company has a market capitalization of $11.50 billion, a PE ratio of 49.70, a P/E/G ratio of 2.55 and a beta of 0.63. The business’s 50 day simple moving average is $41.18 and its 200 day simple moving average is $35.89.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings results on Thursday, May 1st. The company reported $0.20 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.17 by $0.03. Leonardo DRS had a net margin of 7.00% and a return on equity of 10.63%. The business had revenue of $799.00 million during the quarter, compared to the consensus estimate of $736.72 million. During the same quarter last year, the firm earned $0.14 EPS. The business’s revenue was up 16.1% compared to the same quarter last year. As a group, analysts anticipate that Leonardo DRS, Inc. will post 1.04 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, June 5th. Shareholders of record on Thursday, May 22nd were given a $0.09 dividend. The ex-dividend date of this dividend was Thursday, May 22nd. This represents a $0.36 dividend on an annualized basis and a yield of 0.83%. Leonardo DRS’s dividend payout ratio is currently 41.38%.

Insider Activity

In other Leonardo DRS news, Director David W. Carey sold 6,438 shares of Leonardo DRS stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $45.94, for a total value of $295,761.72. Following the completion of the transaction, the director now directly owns 23,882 shares of the company’s stock, valued at $1,097,139.08. The trade was a 21.23% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, COO John Baylouny sold 3,529 shares of the business’s stock in a transaction dated Tuesday, April 8th. The stock was sold at an average price of $31.96, for a total transaction of $112,786.84. Following the sale, the chief operating officer now owns 137,283 shares in the company, valued at $4,387,564.68. This trade represents a 2.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Corporate insiders own 0.12% of the company’s stock.

Institutional Inflows and Outflows

A number of institutional investors have recently made changes to their positions in the business. Illumine Investment Management LLC purchased a new stake in Leonardo DRS during the 4th quarter worth about $1,784,000. Ameriprise Financial Inc. purchased a new stake in shares of Leonardo DRS during the fourth quarter worth approximately $344,000. Brevan Howard Capital Management LP acquired a new stake in Leonardo DRS in the fourth quarter valued at approximately $503,000. Vanguard Group Inc. lifted its stake in Leonardo DRS by 3.4% in the fourth quarter. Vanguard Group Inc. now owns 7,934,919 shares of the company’s stock worth $256,377,000 after acquiring an additional 263,002 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. grew its holdings in Leonardo DRS by 7.5% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,088,369 shares of the company’s stock worth $35,165,000 after acquiring an additional 75,999 shares in the last quarter. Institutional investors and hedge funds own 18.76% of the company’s stock.

Leonardo DRS Company Profile

Leonardo DRS, Inc, together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.