Leonardo DRS (NASDAQ:DRS) Lowered to Hold Rating by Wall Street Zen

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

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

Leonardo DRS Trading Down 0.7%

NASDAQ DRS opened at $40.99 on Friday. Leonardo DRS has a 52 week low of $28.17 and a 52 week high of $49.31. The firm has a 50 day moving average of $35.87 and a two-hundred day moving average of $39.94. 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 capitalization of $10.90 billion, a PE ratio of 41.83, a price-to-earnings-growth ratio of 2.06 and a beta of 0.44.

Leonardo DRS (NASDAQ:DRS) last released its quarterly earnings data on Wednesday, October 29th. The company reported $0.29 EPS for the quarter, beating analysts’ consensus estimates of $0.28 by $0.01. The business had revenue of $960.00 million for the quarter, compared to the consensus estimate of $924.79 million. Leonardo DRS had a return on equity of 11.37% and a net margin of 7.43%.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 business posted $0.24 EPS. Leonardo DRS has set its FY 2025 guidance at 1.070-1.120 EPS. As a group, research analysts expect that Leonardo DRS will post 1.04 EPS for the current fiscal year.

Insiders Place Their Bets

In related news, CFO Michael Dippold sold 10,588 shares of the stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $37.00, for a total transaction of $391,756.00. Following the completion of the transaction, the chief financial officer directly owned 42,952 shares of the company’s stock, valued at $1,589,224. This represents a 19.78% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this link. Also, EVP Sally Wallace sold 1,300 shares of the firm’s 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 completion of the sale, the executive vice president owned 58,353 shares of the company’s stock, valued at approximately $2,052,275.01. The trade was a 2.18% decrease in their position. The disclosure for this sale is available in the SEC filing. 0.34% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

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