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

Wall Street Zen downgraded shares of Leonardo DRS (NASDAQ:DRS) from a buy rating to a hold rating in a research note published on Saturday.

DRS has been the topic of several other research reports. Weiss Ratings reissued a “buy (b-)” rating on shares of Leonardo DRS in a report on Monday, December 29th. Morgan Stanley set a $47.00 target price on shares of Leonardo DRS in a research report on Wednesday, February 25th. Finally, Truist Financial set a $59.00 price target on shares of Leonardo DRS in a report on Wednesday, February 25th. Six analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $48.86.

Leonardo DRS Trading Up 4.8%

Shares of Leonardo DRS stock opened at $45.49 on Friday. The company has a 50-day moving average of $39.37 and a two-hundred day moving average of $39.04. Leonardo DRS has a 12-month low of $28.17 and a 12-month high of $49.31. The company has a current ratio of 2.00, a quick ratio of 1.63 and a debt-to-equity ratio of 0.12. The stock has a market cap of $12.10 billion, a PE ratio of 44.17, a price-to-earnings-growth ratio of 2.16 and a beta of 0.41.

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

Leonardo DRS Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th will be issued a dividend of $0.09 per share. The ex-dividend date is Tuesday, March 10th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 0.8%. Leonardo DRS’s payout ratio is 34.95%.

Insider Buying and Selling

In other news, EVP Sally Wallace sold 1,300 shares of the business’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 completion of the transaction, the executive vice president owned 58,353 shares of the company’s stock, valued at $2,052,275.01. The trade was a 2.18% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available at the SEC website. Also, CFO Michael Dippold sold 10,588 shares of the firm’s stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $37.00, for a total transaction of $391,756.00. Following the sale, the chief financial officer owned 42,952 shares in the company, valued at approximately $1,589,224. This trade represents a 19.78% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 0.12% of the company’s stock.

Institutional Investors Weigh In On Leonardo DRS

A number of hedge funds and other institutional investors have recently made changes to their positions in DRS. True Wealth Design LLC lifted its position in Leonardo DRS by 122.6% during the third quarter. True Wealth Design LLC now owns 541 shares of the company’s stock worth $25,000 after buying an additional 298 shares during the period. Steward Partners Investment Advisory LLC lifted its holdings in shares of Leonardo DRS by 91.7% during the 2nd quarter. Steward Partners Investment Advisory LLC now owns 575 shares of the company’s stock worth $27,000 after acquiring an additional 275 shares during the period. Quarry LP lifted its holdings in shares of Leonardo DRS by 7,041.7% during the 4th quarter. Quarry LP now owns 857 shares of the company’s stock worth $29,000 after acquiring an additional 845 shares during the period. Clearstead Advisors LLC boosted its position in shares of Leonardo DRS by 564.1% in the third quarter. Clearstead Advisors LLC now owns 684 shares of the company’s stock worth $31,000 after acquiring an additional 581 shares during the last quarter. Finally, GAMMA Investing LLC grew its holdings in Leonardo DRS by 72.2% in the third quarter. GAMMA Investing LLC now owns 751 shares of the company’s stock valued at $34,000 after purchasing an additional 315 shares during the period. Hedge funds and other institutional investors own 18.76% of the company’s stock.

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.