Zacks Investment Research cut shares of Leidos (NYSE:LDOS) from a hold rating to a sell rating in a research report released on Thursday morning.

According to Zacks, “Leidos Holdings is susceptible to interest rate risk related to the issuance of debt. With the current U.S. economy being in favor of an increasing interest rate, the credit market might not hugely favor Leidos Holdings. A material rise in long-term interest rates is a major risk for capital intensive stocks like Leidos Holdings. In the United States, Leidos Holdings faces intense competition for its broad portfolio of products and services. Shares of Leidos Holdings have thus underperformed its industry in the past 12 months. However, with the current U.S. administration being in favor of increased defense spending, macroeconomic environment in the nation has been boosting the company’s growth prospects. It also boasts a strong balance sheet, courtesy of its improving cash flows.”

LDOS has been the topic of a number of other reports. Cowen reissued a buy rating and set a $77.00 price target on shares of Leidos in a research report on Wednesday, October 17th. Argus dropped their price target on shares of Leidos from $80.00 to $70.00 and set a buy rating on the stock in a research report on Monday, October 29th. Finally, ValuEngine lowered shares of Leidos from a buy rating to a hold rating in a research report on Wednesday, September 19th. Two equities research analysts have rated the stock with a sell rating, one has issued a hold rating and five have given a buy rating to the company. Leidos presently has an average rating of Hold and a consensus price target of $77.29.

Leidos stock opened at $55.42 on Thursday. Leidos has a 1-year low of $50.33 and a 1-year high of $72.30. The firm has a market capitalization of $8.17 billion, a price-to-earnings ratio of 14.90, a price-to-earnings-growth ratio of 1.22 and a beta of 1.65. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.16 and a current ratio of 1.38.

Leidos (NYSE:LDOS) last released its quarterly earnings data on Thursday, October 25th. The aerospace company reported $1.14 earnings per share for the quarter, beating analysts’ consensus estimates of $1.10 by $0.04. Leidos had a net margin of 5.04% and a return on equity of 18.67%. The firm had revenue of $2.58 billion for the quarter, compared to analyst estimates of $2.64 billion. Equities research analysts predict that Leidos will post 4.36 EPS for the current year.

The firm also recently announced a quarterly dividend, which was paid on Friday, December 28th. Stockholders of record on Monday, December 17th were paid a $0.32 dividend. The ex-dividend date of this dividend was Friday, December 14th. This represents a $1.28 annualized dividend and a dividend yield of 2.31%. Leidos’s payout ratio is 34.41%.

Institutional investors and hedge funds have recently bought and sold shares of the company. FMR LLC grew its stake in Leidos by 30.3% during the second quarter. FMR LLC now owns 13,424,963 shares of the aerospace company’s stock valued at $792,073,000 after acquiring an additional 3,122,237 shares in the last quarter. Federated Investors Inc. PA grew its stake in Leidos by 9.1% during the second quarter. Federated Investors Inc. PA now owns 62,200 shares of the aerospace company’s stock valued at $3,670,000 after acquiring an additional 5,213 shares in the last quarter. Commonwealth Bank of Australia grew its stake in Leidos by 197.3% during the second quarter. Commonwealth Bank of Australia now owns 8,928 shares of the aerospace company’s stock valued at $523,000 after acquiring an additional 5,925 shares in the last quarter. OppenheimerFunds Inc. grew its stake in Leidos by 6.4% during the second quarter. OppenheimerFunds Inc. now owns 47,886 shares of the aerospace company’s stock valued at $2,825,000 after acquiring an additional 2,870 shares in the last quarter. Finally, Raymond James & Associates grew its stake in Leidos by 28.1% during the second quarter. Raymond James & Associates now owns 288,694 shares of the aerospace company’s stock valued at $17,033,000 after acquiring an additional 63,251 shares in the last quarter. Hedge funds and other institutional investors own 72.37% of the company’s stock.

Leidos Company Profile

Leidos Holdings, Inc provides services and solutions in the defense, intelligence, civil, and health markets primarily in the United States. The company operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S.

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Analyst Recommendations for Leidos (NYSE:LDOS)

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