Leonardo DRS, Inc. (NASDAQ:DRS) Given Consensus Recommendation of “Moderate Buy” by Brokerages

Leonardo DRS, Inc. (NASDAQ:DRS) has been assigned a consensus recommendation of “Moderate Buy” from the nine brokerages that are presently covering the company, MarketBeat.com reports. Three research analysts have rated the stock with a hold recommendation and six have issued a buy recommendation on the company. The average 1-year price target among brokers that have updated their coverage on the stock in the last year is $48.8571.

DRS has been the subject of several analyst reports. Zacks Research cut shares of Leonardo DRS from a “strong-buy” rating to a “hold” rating in a research note on Thursday, October 30th. Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. Canaccord Genuity Group reaffirmed a “buy” rating and set a $50.00 target price on shares of Leonardo DRS in a research note on Thursday, October 30th. Morgan Stanley set a $47.00 price target on Leonardo DRS in a research report on Wednesday. Finally, Weiss Ratings reiterated a “buy (b-)” rating on shares of Leonardo DRS in a research report on Monday, December 29th.

Leonardo DRS Stock Down 3.3%

Leonardo DRS stock opened at $42.36 on Thursday. The business has a fifty day moving average of $38.76 and a two-hundred day moving average of $39.01. Leonardo DRS has a twelve month low of $28.17 and a twelve month high of $49.31. 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 firm has a market cap of $11.27 billion, a P/E ratio of 41.13, a P/E/G ratio of 2.22 and a beta of 0.45.

Leonardo DRS (NASDAQ:DRS) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.42 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.37 by $0.05. The business had revenue of $1.06 billion for the quarter, compared to analyst estimates of $994.79 million. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.82%. The business’s revenue for the quarter was up 8.1% on a year-over-year basis. During the same period in the previous year, the company earned $0.38 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS. On average, analysts forecast that Leonardo DRS will post 1.04 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 24th. Investors of record on Tuesday, March 10th will be given a dividend of $0.09 per share. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.8%. The ex-dividend date of this dividend is Tuesday, March 10th. Leonardo DRS’s dividend payout ratio (DPR) is presently 36.73%.

Insider Buying and Selling

In other news, EVP Sally Wallace sold 1,300 shares of the company’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 value of $45,721.00. Following the transaction, the executive vice president directly owned 58,353 shares in the company, valued at approximately $2,052,275.01. This represents a 2.18% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, CFO Michael Dippold sold 10,588 shares of the business’s stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $37.00, for a total value of $391,756.00. Following the completion of 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 position. The SEC filing for this sale provides additional information. 0.34% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

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

Key Headlines Impacting Leonardo DRS

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

• Positive Sentiment: Q4 results beat expectations — reported $0.42 EPS vs. $0.37 consensus and revenue of ~$1.06B, signaling stronger demand and margin improvement. This is the primary driver behind recent upside. DRS Q4 earnings beat (Zacks)
• Positive Sentiment: Revenue guidance raised — company issued FY2026 revenue range (~$3.9–$4.0B) and targeted 6–8% organic growth, which supports top-line momentum and backlog visibility. FY2026 guidance (Business Wire)
• Positive Sentiment: Dividend declared — quarterly payout of $0.09 per share (yield ~0.8%), signaling cash-flow confidence and returning capital to shareholders (ex-div March 10). (Company notice)
• Positive Sentiment: Technical momentum — stock cleared an 80+ RS (Relative Strength) rating, attracting momentum/quant buyers and reinforcing the recent rally. RS rating article (MSN)
• Positive Sentiment: Program win / product selection — Leonardo selected the Pegasus next‑gen rescue hoist for AW139 and future platforms, supporting aftermarket/upgrade revenue and product-level wins. Pegasus hoist selection (TMCNet)
• Neutral Sentiment: Earnings call and slide deck available — full transcript and slide materials give detail on backlog, margin drivers and investment plans; useful for modeling but not a headline catalyst by itself. Earnings call transcript (Seeking Alpha)
• Neutral Sentiment: Analyst/metric reviews — outlets are parsing key metrics vs. estimates (margins, ROE, organic growth assumptions); useful context but mixed takeaways. Key metrics vs estimates (Zacks)
• Negative Sentiment: Valuation and momentum caution — some commentators ask whether the stock (up ~50% over 1 year) is due for reassessment, which can prompt profit-taking and slow further upside. Valuation discussion (Yahoo Finance)
• Negative Sentiment: EPS guidance range slightly below/at consensus midpoint — while revenue guidance was healthy, the FY2026 EPS range (1.20–1.26) sits at/just under street expectations, leaving limited upside to estimates and potential sensitivity to margin pressures. FY2026 EPS guidance (Business Wire)

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.