Brokerages Set Leonardo DRS, Inc. (NASDAQ:DRS) Target Price at $53.75

Shares of Leonardo DRS, Inc. (NASDAQ:DRS) have been given an average recommendation of “Moderate Buy” by the six research firms that are presently covering the stock, MarketBeat reports. Three equities research analysts have rated the stock with a hold recommendation, two have issued a buy recommendation and one has issued a strong buy recommendation on the company. The average 1-year target price among analysts that have updated their coverage on the stock in the last year is $53.75.

A number of research firms have recently issued reports on DRS. Weiss Ratings downgraded shares of Leonardo DRS from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, June 23rd. Bank of America raised their price objective on Leonardo DRS from $50.00 to $55.00 and gave the company a “buy” rating in a research note on Wednesday, March 25th. Wall Street Zen raised Leonardo DRS from a “hold” rating to a “buy” rating in a report on Sunday, May 10th. Canaccord Genuity Group boosted their target price on Leonardo DRS from $52.00 to $54.00 and gave the stock a “buy” rating in a research report on Wednesday, May 6th. Finally, Truist Financial upgraded Leonardo DRS to a “strong-buy” rating in a research report on Friday, May 1st.

Leonardo DRS Stock Performance

NASDAQ:DRS opened at $45.47 on Wednesday. The firm’s fifty day simple moving average is $44.39 and its 200-day simple moving average is $42.68. The company has a quick ratio of 1.52, a current ratio of 1.86 and a debt-to-equity ratio of 0.05. The stock has a market cap of $12.13 billion, a PE ratio of 42.50, a price-to-earnings-growth ratio of 3.27 and a beta of 0.36. Leonardo DRS has a fifty-two week low of $32.43 and a fifty-two week high of $50.59.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings data on Tuesday, May 5th. The company reported $0.26 EPS for the quarter, beating the consensus estimate of $0.21 by $0.05. The firm had revenue of $846.00 million during the quarter, compared to analysts’ expectations of $825.05 million. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The business’s revenue for the quarter was up 5.9% compared to the same quarter last year. During the same quarter last year, the business earned $0.20 earnings per share. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. Analysts expect that Leonardo DRS will post 1.3 earnings per share for the current fiscal year.

Leonardo DRS Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were paid a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a yield of 0.8%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS’s dividend payout ratio is presently 33.64%.

Insider Activity

In related news, Director Reuben Jeffery III acquired 25,000 shares of the business’s stock in a transaction that occurred on Tuesday, May 19th. The stock was purchased at an average cost of $42.77 per share, for a total transaction of $1,069,250.00. Following the transaction, the director directly owned 25,000 shares of the company’s stock, valued at approximately $1,069,250. This trade represents a ∞ increase in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Michael Dippold sold 8,318 shares of Leonardo DRS stock in a transaction that occurred on Monday, June 8th. The stock was sold at an average price of $46.48, for a total value of $386,620.64. Following the transaction, the chief financial officer owned 55,460 shares of the company’s stock, valued at $2,577,780.80. This represents a 13.04% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 61,499 shares of company stock worth $2,819,430 in the last three months. Company insiders own 0.25% of the company’s stock.

Hedge Funds Weigh In On Leonardo DRS

A number of institutional investors have recently made changes to their positions in DRS. Quarry LP boosted its stake in shares of Leonardo DRS by 7,041.7% during the fourth quarter. Quarry LP now owns 857 shares of the company’s stock valued at $29,000 after acquiring an additional 845 shares during the last quarter. Clearstead Advisors LLC raised its stake in Leonardo DRS by 564.1% in the 3rd quarter. Clearstead Advisors LLC now owns 684 shares of the company’s stock valued at $31,000 after purchasing an additional 581 shares during the last quarter. Leonteq Securities AG purchased a new position in Leonardo DRS in the 4th quarter valued at about $34,000. Allworth Financial LP boosted its stake in shares of Leonardo DRS by 504.1% during the 3rd quarter. Allworth Financial LP now owns 882 shares of the company’s stock worth $40,000 after purchasing an additional 736 shares during the last quarter. Finally, Fifth Third Bancorp acquired a new stake in shares of Leonardo DRS during the 1st quarter worth about $41,000. 18.76% of the stock is owned by institutional investors and hedge funds.

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.