Leonardo DRS (NASDAQ:DRS) Cut to “Hold” at Wall Street Zen

Leonardo DRS (NASDAQ:DRS) was downgraded by Wall Street Zen from a “buy” rating to a “hold” rating in a research report issued on Friday.

Other research analysts also recently issued research reports about the stock. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Leonardo DRS in a research report on Monday, December 29th. Canaccord Genuity Group restated a “buy” rating and issued a $50.00 target price on shares of Leonardo DRS in a research note 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. Truist Financial set a $54.00 price target on Leonardo DRS in a research report on Friday, January 9th. Finally, Morgan Stanley set a $40.00 price objective on Leonardo DRS in a research report on Tuesday, December 16th. Six equities research analysts have rated the stock with a Buy rating and three have given a Hold rating to the company’s stock. According to MarketBeat.com, Leonardo DRS has an average rating of “Moderate Buy” and a consensus price target of $47.14.

Leonardo DRS Price Performance

DRS opened at $40.99 on Friday. The business has a fifty day moving average of $35.87 and a 200 day moving average of $39.94. Leonardo DRS has a 52-week low of $28.17 and a 52-week 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 stock has a market cap of $10.90 billion, a P/E ratio of 41.83, a PEG ratio of 2.06 and a beta of 0.44.

Leonardo DRS (NASDAQ:DRS) last issued its earnings results on Wednesday, October 29th. The company reported $0.29 EPS for the quarter, topping analysts’ consensus estimates of $0.28 by $0.01. The business had revenue of $960.00 million for the quarter, compared to analyst estimates of $924.79 million. Leonardo DRS had a net margin of 7.43% and a return on equity of 11.37%. The company’s quarterly revenue was up 18.2% compared to the same quarter last year. During the same period last year, the company posted $0.24 earnings per share. Leonardo DRS has set its FY 2025 guidance at 1.070-1.120 EPS. As a group, sell-side analysts anticipate that Leonardo DRS will post 1.04 EPS for the current year.

Insider Activity at Leonardo DRS

In other news, EVP Sally Wallace sold 1,300 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $35.17, for a total value of $45,721.00. Following the transaction, the executive vice president owned 58,353 shares in the company, valued at $2,052,275.01. This trade represents a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Michael Dippold sold 10,588 shares of the firm’s stock in a transaction 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 transaction, the chief financial officer owned 42,952 shares in the company, valued at $1,589,224. The trade was a 19.78% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 0.34% of the company’s stock.

Institutional Trading of Leonardo DRS

A number of hedge funds and other institutional investors have recently modified their holdings of DRS. Invesco Ltd. boosted 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 purchasing an additional 870,772 shares during the period. First Trust Advisors LP lifted its holdings in Leonardo DRS by 116.8% during the 3rd quarter. First Trust Advisors LP now owns 3,661,214 shares of the company’s stock worth $166,219,000 after buying an additional 1,972,596 shares in the last quarter. State Street Corp boosted its position in Leonardo DRS by 8.3% in the 2nd quarter. State Street Corp now owns 3,311,605 shares of the company’s stock valued at $153,923,000 after buying an additional 254,975 shares during the period. Van ECK Associates Corp boosted its position in Leonardo DRS by 9.3% in the 3rd quarter. Van ECK Associates Corp now owns 1,820,059 shares of the company’s stock valued at $82,631,000 after buying an additional 154,792 shares during the period. Finally, Voya Investment Management LLC grew its stake in shares of Leonardo DRS by 21.3% in the third quarter. Voya Investment Management LLC now owns 1,807,025 shares of the company’s stock worth $82,039,000 after acquiring an additional 317,294 shares in the last quarter. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Company Profile

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.