Wall Street Zen Downgrades Leonardo DRS (NASDAQ:DRS) to Hold

Leonardo DRS (NASDAQ:DRS) was downgraded by investment analysts at Wall Street Zen from a “buy” rating to a “hold” rating in a note issued to investors on Friday.

Other research analysts have also issued reports about the company. Canaccord Genuity Group reiterated a “buy” rating and issued a $50.00 price objective on shares of Leonardo DRS in a research report on Thursday, October 30th. Morgan Stanley set a $40.00 price target on Leonardo DRS in a research note on Tuesday, December 16th. Zacks Research downgraded Leonardo DRS from a “strong-buy” rating to a “hold” rating in a research report on Thursday, October 30th. Weiss Ratings restated a “buy (b-)” rating on shares of Leonardo DRS in a report on Monday, December 29th. Finally, Truist Financial set a $54.00 target price on shares of Leonardo DRS in a research note on Friday, January 9th. Six equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $47.14.

Leonardo DRS Price Performance

Shares of DRS stock opened at $40.99 on Friday. The company has a debt-to-equity ratio of 0.12, a current ratio of 2.00 and a quick ratio of 1.63. The firm’s 50-day moving average is $35.87 and its two-hundred day moving average is $39.90. Leonardo DRS has a 12 month low of $28.17 and a 12 month high of $49.31. The company has a market capitalization of $10.90 billion, a PE ratio of 41.83, a price-to-earnings-growth ratio of 2.04 and a beta of 0.44.

Leonardo DRS (NASDAQ:DRS) last posted its quarterly earnings results on Wednesday, October 29th. The company reported $0.29 earnings per share for the quarter, beating the consensus estimate of $0.28 by $0.01. The business had revenue of $960.00 million during the quarter, compared to analysts’ expectations of $924.79 million. Leonardo DRS had a net margin of 7.43% and a return on equity of 11.37%. The business’s revenue for the quarter was up 18.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.24 EPS. Leonardo DRS has set its FY 2025 guidance at 1.070-1.120 EPS. Analysts predict that Leonardo DRS will post 1.04 earnings per share for the current year.

Insider Activity

In other news, EVP Sally Wallace sold 1,300 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $35.17, for a total transaction of $45,721.00. Following the sale, the executive vice president owned 58,353 shares of the company’s stock, valued at approximately $2,052,275.01. This represents a 2.18% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Michael Dippold sold 10,588 shares of the company’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 directly owned 42,952 shares in the company, valued at approximately $1,589,224. The trade was a 19.78% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. 0.34% of the stock is currently owned by corporate insiders.

Institutional Trading of Leonardo DRS

A number of large investors have recently modified their holdings of DRS. Steward Partners Investment Advisory LLC boosted its holdings in Leonardo DRS by 91.7% in the second quarter. Steward Partners Investment Advisory LLC now owns 575 shares of the company’s stock valued at $27,000 after purchasing an additional 275 shares during the period. True Wealth Design LLC raised its position in Leonardo DRS by 122.6% in the 3rd quarter. True Wealth Design LLC now owns 541 shares of the company’s stock valued at $25,000 after purchasing an additional 298 shares in the last quarter. GAMMA Investing LLC raised its position in Leonardo DRS by 72.2% in the 3rd quarter. GAMMA Investing LLC now owns 751 shares of the company’s stock valued at $34,000 after purchasing an additional 315 shares in the last quarter. Arizona State Retirement System boosted its stake in shares of Leonardo DRS by 1.4% in the 3rd quarter. Arizona State Retirement System now owns 23,616 shares of the company’s stock valued at $1,072,000 after buying an additional 327 shares during the period. Finally, Osaic Holdings Inc. grew its position in shares of Leonardo DRS by 17.0% during the second quarter. Osaic Holdings Inc. now owns 2,383 shares of the company’s stock worth $111,000 after buying an additional 347 shares in the last quarter. Hedge funds and other institutional investors own 18.76% of the company’s stock.

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.