Leonardo DRS, Inc. (NASDAQ:DRS) Given Average Recommendation of “Moderate Buy” by Analysts

Leonardo DRS, Inc. (NASDAQ:DRS) has been assigned a consensus rating of “Moderate Buy” from the nine analysts that are presently covering the company, Marketbeat reports. Three research analysts have rated the stock with a hold recommendation and six have assigned a buy recommendation to the company. The average 1-year price objective among analysts that have covered the stock in the last year is $48.8571.

A number of equities research analysts have recently commented on the stock. Zacks Research cut shares of Leonardo DRS from a “strong-buy” rating to a “hold” rating in a report on Thursday, October 30th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of Leonardo DRS in a research note on Monday, December 29th. Wall Street Zen upgraded Leonardo DRS from a “hold” rating to a “buy” rating in a research note on Saturday, February 14th. Canaccord Genuity Group restated a “buy” rating and set a $50.00 price target on shares of Leonardo DRS in a research note on Thursday, October 30th. Finally, Truist Financial set a $59.00 price objective on shares of Leonardo DRS in a research report on Wednesday.

Leonardo DRS News Summary

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

• Positive Sentiment: Q4 results beat expectations — reported $0.42 EPS vs. $0.37 consensus and revenue of ~$1.06B, signaling stronger demand and margin improvement. This is the primary driver behind recent upside. DRS Q4 earnings beat (Zacks)
• Positive Sentiment: Revenue guidance raised — company issued FY2026 revenue range (~$3.9–$4.0B) and targeted 6–8% organic growth, which supports top-line momentum and backlog visibility. FY2026 guidance (Business Wire)
• Positive Sentiment: Dividend declared — quarterly payout of $0.09 per share (yield ~0.8%), signaling cash-flow confidence and returning capital to shareholders (ex-div March 10). (Company notice)
• Positive Sentiment: Technical momentum — stock cleared an 80+ RS (Relative Strength) rating, attracting momentum/quant buyers and reinforcing the recent rally. RS rating article (MSN)
• Positive Sentiment: Program win / product selection — Leonardo selected the Pegasus next‑gen rescue hoist for AW139 and future platforms, supporting aftermarket/upgrade revenue and product-level wins. Pegasus hoist selection (TMCNet)
• Neutral Sentiment: Earnings call and slide deck available — full transcript and slide materials give detail on backlog, margin drivers and investment plans; useful for modeling but not a headline catalyst by itself. Earnings call transcript (Seeking Alpha)
• Neutral Sentiment: Analyst/metric reviews — outlets are parsing key metrics vs. estimates (margins, ROE, organic growth assumptions); useful context but mixed takeaways. Key metrics vs estimates (Zacks)
• Negative Sentiment: Valuation and momentum caution — some commentators ask whether the stock (up ~50% over 1 year) is due for reassessment, which can prompt profit-taking and slow further upside. Valuation discussion (Yahoo Finance)
• Negative Sentiment: EPS guidance range slightly below/at consensus midpoint — while revenue guidance was healthy, the FY2026 EPS range (1.20–1.26) sits at/just under street expectations, leaving limited upside to estimates and potential sensitivity to margin pressures. FY2026 EPS guidance (Business Wire)

Insider Transactions at Leonardo DRS

In other Leonardo DRS news, EVP Sally Wallace sold 1,300 shares of the business’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 transaction of $45,721.00. Following the transaction, the executive vice president owned 58,353 shares in the company, valued at approximately $2,052,275.01. The trade was a 2.18% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CFO Michael Dippold sold 10,588 shares of the stock in a transaction that occurred on Monday, January 5th. The stock was sold at an average price of $37.00, for a total value of $391,756.00. Following the transaction, the chief financial officer directly owned 42,952 shares of the company’s stock, valued at approximately $1,589,224. This trade represents a 19.78% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.34% of the company’s stock.

Institutional Trading of Leonardo DRS

Institutional investors have recently modified their holdings of the business. Virtu Financial LLC raised its position in Leonardo DRS by 23.0% in the fourth quarter. Virtu Financial LLC now owns 15,886 shares of the company’s stock worth $542,000 after acquiring an additional 2,972 shares in the last quarter. Mercer Global Advisors Inc. ADV boosted its position in shares of Leonardo DRS by 125.2% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 21,301 shares of the company’s stock worth $726,000 after purchasing an additional 11,843 shares in the last quarter. Vident Advisory LLC grew its stake in shares of Leonardo DRS by 23.2% during the 4th quarter. Vident Advisory LLC now owns 149,677 shares of the company’s stock worth $5,102,000 after purchasing an additional 28,222 shares during the period. XTX Topco Ltd increased its holdings in shares of Leonardo DRS by 193.3% in the 4th quarter. XTX Topco Ltd now owns 19,794 shares of the company’s stock valued at $675,000 after purchasing an additional 13,046 shares in the last quarter. Finally, Voloridge Investment Management LLC lifted its stake in shares of Leonardo DRS by 110.0% in the fourth quarter. Voloridge Investment Management LLC now owns 607,029 shares of the company’s stock valued at $20,694,000 after purchasing an additional 317,997 shares during the period. 18.76% of the stock is currently owned by hedge funds and other institutional investors.

Leonardo DRS Stock Performance

Shares of DRS opened at $42.36 on Thursday. The company’s 50 day simple moving average is $38.76 and its 200-day simple moving average is $39.01. The firm has a market cap of $11.27 billion, a PE ratio of 41.13, a price-to-earnings-growth ratio of 2.22 and a beta of 0.45. 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.

Leonardo DRS (NASDAQ:DRS) last released its quarterly earnings results on Tuesday, February 24th. The company reported $0.42 EPS for the quarter, beating the consensus estimate of $0.37 by $0.05. Leonardo DRS had a net margin of 7.62% and a return on equity of 11.82%. The firm had revenue of $1.06 billion during the quarter, compared to the consensus estimate of $994.79 million. During the same quarter in the prior year, the firm earned $0.38 EPS. Leonardo DRS’s revenue for the quarter was up 8.1% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.200-1.260 EPS. As a group, equities analysts predict that Leonardo DRS will post 1.04 EPS for the current year.

Leonardo DRS Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Tuesday, March 24th. Stockholders of record on Tuesday, March 10th will be issued a $0.09 dividend. The ex-dividend date of this dividend is Tuesday, March 10th. This represents a $0.36 annualized dividend and a dividend yield of 0.8%. Leonardo DRS’s payout ratio is presently 36.73%.

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.