Leonardo DRS (NASDAQ:DRS) Stock Price Breaks Above 50 Day Moving Average – Should You Sell?

Posted by Brenda Bartman on Oct 30th, 2026

Leonardo DRS, Inc. (NASDAQ:DRS – Get Free Report) shares crossed above its 50 day moving average during trading on Thursday. The stock has a 50 day moving average of $36.77 and traded as high as $40.42. Leonardo DRS shares last traded at $39.64, with a volume of 2,301,858 shares trading hands.

More Leonardo DRS News

Here are the key news stories impacting Leonardo DRS this week:

Positive Sentiment: Third-quarter adjusted EPS was $0.46, above the $0.35 consensus estimate, while revenue reached $1.07 billion, exceeding the $1.03 billion estimate. EPS increased from $0.29 and revenue grew 11% year over year. Earnings Flash: Leonardo DRS adjusted EPS
Positive Sentiment: Profitability improved sharply: net earnings rose 60% to $115 million, adjusted EBITDA increased 27% to $149 million, and adjusted EBITDA margin expanded to 14.0% from 12.2%, supported by favorable product mix, operating leverage, and strong execution. Leonardo DRS third-quarter financial results
Positive Sentiment: Bookings reached a record $1.6 billion, producing a 1.5x book-to-bill ratio. Funded backlog rose 21% year over year to a record $5.6 billion, improving visibility into future revenue from defense programs including tactical radars, naval power and propulsion, and space sensing.
Positive Sentiment: Leonardo DRS raised its 2026 outlook. Revenue guidance increased to $3.95-$3.985 billion, adjusted EBITDA guidance to $545-$555 million, and adjusted diluted EPS guidance to $1.50-$1.53. Leonardo DRS raises fiscal 2026 outlook
Positive Sentiment: The board declared a quarterly dividend of $0.09 per share, payable November 25 to shareholders of record November 12. The company also repurchased approximately $12 million of stock during the quarter.
Neutral Sentiment: Management’s earnings call emphasized robust defense demand and confidence in the raised outlook, although the guidance excludes the pending Raft acquisition and remains subject to government funding, contract execution, and integration risks.
Negative Sentiment: Third-quarter free cash flow fell to $61 million from $77 million a year earlier because of higher working-capital needs. Cash declined to $294 million, although the company reported no borrowings under its credit facility and reduced long-term debt.

Analysts Set New Price Targets

DRS has been the subject of several recent research reports. Weiss Ratings lowered shares of Leonardo DRS from a “buy (b-)” rating to a “hold (c+)” rating in a research report on Thursday, October 22nd. JPMorgan Chase & Co. lifted their price objective on Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, July 31st. Morgan Stanley lowered their price objective on Leonardo DRS from $47.00 to $44.00 and set an “equal weight” rating on the stock in a research note on Friday, October 16th. Guggenheim began coverage on Leonardo DRS in a report on Monday, September 14th. They issued a “buy” rating and a $51.00 target price for the company. Finally, Oppenheimer assumed coverage on Leonardo DRS in a research report on Thursday, October 22nd. They set an “outperform” rating and a $45.00 target price for the company. Two investment analysts have rated the stock with a Strong Buy rating, three have assigned a Buy rating and three have issued a Hold rating to the company. Based on data from MarketBeat.com, Leonardo DRS has an average rating of “Moderate Buy” and a consensus target price of $51.57.

View Our Latest Analysis on DRS

Leonardo DRS Trading Up 11.7%

The company’s fifty day moving average price is $36.77 and its two-hundred day moving average price is $42.20. The company has a current ratio of 1.92, a quick ratio of 1.56 and a debt-to-equity ratio of 0.05. The firm has a market cap of $10.58 billion, a P/E ratio of 33.31, a price-to-earnings-growth ratio of 2.14 and a beta of 0.32.

Leonardo DRS (NASDAQ:DRS – Get Free Report) last released its quarterly earnings results on Thursday, October 29th. The company reported $0.46 EPS for the quarter, beating analysts’ consensus estimates of $0.35 by $0.11. The firm had revenue of $1.07 billion for the quarter, compared to analyst estimates of $1.03 billion. Leonardo DRS had a net margin of 8.52% and a return on equity of 12.97%. The company’s revenue for the quarter was up 11.0% compared to the same quarter last year. During the same period in the previous year, the business earned $0.29 earnings per share. As a group, sell-side analysts predict that Leonardo DRS, Inc. will post 1.39 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be paid a $0.09 dividend. The ex-dividend date is Thursday, November 12th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.9%. Leonardo DRS’s payout ratio is 30.25%.

Insider Activity at Leonardo DRS

In related news, CFO Michael Dippold sold 20,317 shares of the firm’s stock in a transaction on Wednesday, September 2nd. The stock was sold at an average price of $37.18, for a total transaction of $755,386.06. Following the completion of the sale, the chief financial officer directly owned 35,143 shares of the company’s stock, 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 is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Rinsky sold 3,864 shares of Leonardo DRS stock in a transaction on Tuesday, August 4th. The shares were sold at an average price of $45.81, for a total value of $177,009.84. Following the completion of the transaction, the executive vice president owned 23,581 shares of the company’s stock, valued at approximately $1,080,245.61. The trade was a 14.08% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.25% of the stock is owned by insiders.

Institutional Trading of Leonardo DRS

Several large investors have recently made changes to their positions in the business. Sumitomo Mitsui Trust Group Inc. raised its holdings in shares of Leonardo DRS by 9.2% in the third quarter. Sumitomo Mitsui Trust Group Inc. now owns 24,805 shares of the company’s stock valued at $909,000 after buying an additional 2,090 shares during the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al lifted its position in Leonardo DRS by 4.1% during the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 48,250 shares of the company’s stock worth $1,767,000 after buying an additional 1,900 shares in the last quarter. VestGen Advisors LLC acquired a new position in Leonardo DRS during the 3rd quarter worth about $261,000. Verdence Capital Advisors LLC bought a new stake in Leonardo DRS during the 3rd quarter worth about $475,000. Finally, Tower View Wealth Management LLC grew its holdings in Leonardo DRS by 4.3% during the 3rd quarter. Tower View Wealth Management LLC now owns 95,871 shares of the company’s stock worth $3,512,000 after acquiring an additional 3,936 shares during the last quarter. Institutional investors own 18.76% of the company’s stock.

Leonardo DRS Company Profile

(Get Free Report)

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.