Leonardo DRS (NASDAQ:DRS) Stock Breaks Above Fifty Day Moving Average – Here’s What Happened

Leonardo DRS, Inc. (NASDAQ:DRS) crossed above its fifty day moving average during trading on Thursday. The stock has a fifty 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.

Key Stories Impacting Leonardo DRS

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

• Positive Sentiment: Q3 results exceeded expectations. Revenue rose 11% year over year to $1.07 billion, while adjusted EPS increased 59% to $0.46, ahead of the approximately $0.35–$0.36 analyst consensus. Net earnings climbed 60% to $115 million and adjusted EBITDA rose 27% to $149 million, helped by favorable business mix, operating leverage and strong execution. Leonardo DRS Announces Financial Results for Third Quarter 2026
• Positive Sentiment: Demand and future revenue visibility strengthened. Quarterly bookings reached a company-record $1.6 billion, producing a 1.5x book-to-bill ratio. Funded backlog increased 21% year over year to a record $5.6 billion, led by naval power and propulsion, tactical radar and force-protection programs. Leonardo DRS Jumps 12% as Q3 Bookings Hit Our Strongest Since Becoming a Public Company
• Positive Sentiment: Management raised 2026 guidance. New targets call for revenue of $3.95 billion–$3.985 billion, adjusted EBITDA of $545 million–$555 million and adjusted EPS of $1.50–$1.53, all above prior guidance. Analysts’ average price target also implies roughly 32% potential upside, though target-based projections are uncertain. Wall Street Analysts Believe Leonardo DRS Could Rally 32.44%
• Neutral Sentiment: Leonardo DRS declared a quarterly dividend of $0.09 per share, payable November 25 to shareholders of record November 12. The dividend supports shareholder returns but represents a modest yield of about 0.9%.
• Negative Sentiment: Analyst valuation and cash-flow concerns remain. One report cited a fair-value reduction as analysts weighed the stock’s valuation against its backlog and newer contract wins. Third-quarter free cash flow fell to $61 million from $77 million a year earlier, while cash declined to $294 million, creating a counterpoint to the earnings strength. Leonardo DRS Stock Gets Fair Value Trim

Wall Street Analyst Weigh In

DRS has been the topic of a number of analyst 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. Morgan Stanley cut their price objective on shares of Leonardo DRS from $47.00 to $44.00 and set an “equal weight” rating for the company in a research report on Friday, October 16th. Oppenheimer initiated coverage on shares of Leonardo DRS in a research note on Thursday, October 22nd. They issued an “outperform” rating and a $45.00 target price for the company. Guggenheim started coverage on shares of Leonardo DRS in a report on Monday, September 14th. They issued a “buy” rating and a $51.00 target price on the stock. Finally, JPMorgan Chase & Co. boosted their price target on shares of Leonardo DRS from $48.00 to $53.00 and gave the stock a “neutral” rating in a research note on Friday, July 31st. Two research analysts have rated the stock with a Strong Buy rating, three have issued a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, Leonardo DRS presently has a consensus rating of “Moderate Buy” and an average target price of $51.57.

Leonardo DRS Stock Down 4.9%

The company has a debt-to-equity ratio of 0.05, a quick ratio of 1.56 and a current ratio of 1.92. The firm has a market capitalization of $10.06 billion, a price-to-earnings ratio of 27.71, a PEG ratio of 2.39 and a beta of 0.32. The firm has a fifty day moving average price of $36.70 and a 200 day moving average price of $42.18.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings data on Thursday, October 29th. The company reported $0.46 earnings per share for the quarter, topping 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 return on equity of 14.49% and a net margin of 9.40%. Leonardo DRS’s quarterly revenue was up 11.0% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.29 earnings per share. As a group, sell-side analysts expect that Leonardo DRS, Inc. will post 1.39 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Wednesday, November 25th. Stockholders of record on Thursday, November 12th will be paid a dividend of $0.09 per share. The ex-dividend date of this dividend is Thursday, November 12th. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.0%. Leonardo DRS’s dividend payout ratio is 26.47%.

Insider Transactions at Leonardo DRS

In related news, CFO Michael Dippold sold 20,317 shares of the business’s stock in a transaction dated Wednesday, September 2nd. The shares were sold at an average price of $37.18, for a total transaction of $755,386.06. Following the sale, the chief financial officer owned 35,143 shares of the company’s stock, valued at approximately $1,306,616.74. The trade was a 36.63% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Jason Rinsky sold 3,864 shares of the business’s stock in a transaction dated Tuesday, August 4th. The stock was sold at an average price of $45.81, for a total transaction of $177,009.84. Following the sale, the executive vice president directly owned 23,581 shares in the company, valued at approximately $1,080,245.61. This represents 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. Company insiders own 0.25% of the company’s stock.

Institutional Investors Weigh In On Leonardo DRS

A number of hedge funds and other institutional investors have recently modified their holdings of DRS. Covestor Ltd raised its stake in shares of Leonardo DRS by 14.7% in the 3rd quarter. Covestor Ltd now owns 3,249 shares of the company’s stock valued at $119,000 after acquiring an additional 416 shares during the period. Sumitomo Mitsui Trust Group Inc. increased its holdings in Leonardo DRS by 9.2% in the 3rd quarter. Sumitomo Mitsui Trust Group Inc. now owns 24,805 shares of the company’s stock valued at $909,000 after purchasing an additional 2,090 shares in the last quarter. VIRGINIA RETIREMENT SYSTEMS ET Al increased its holdings in Leonardo DRS by 4.1% in the 3rd quarter. VIRGINIA RETIREMENT SYSTEMS ET Al now owns 48,250 shares of the company’s stock valued at $1,767,000 after purchasing an additional 1,900 shares in the last quarter. VestGen Advisors LLC acquired a new stake in Leonardo DRS in the 3rd quarter valued at $261,000. Finally, Verdence Capital Advisors LLC purchased a new position in Leonardo DRS in the third quarter valued at about $475,000. 18.76% of the stock is currently owned by institutional investors and hedge funds.

Leonardo DRS Company Profile

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.