Leidos (NYSE:LDOS) Shares Gap Down – Time to Sell?

Leidos Holdings, Inc. (NYSE:LDOS) gapped down before the market opened on Tuesday. The stock had previously closed at $144.16, but opened at $133.77. Leidos shares last traded at $136.3740, with a volume of 297,595 shares traded.

Analyst Ratings Changes

Several analysts recently commented on LDOS shares. Citigroup dropped their price target on shares of Leidos from $161.00 to $141.00 and set a “buy” rating on the stock in a research report on Wednesday, October 7th. JPMorgan Chase & Co. cut Leidos from an “overweight” rating to a “neutral” rating and dropped their target price for the company from $160.00 to $142.00 in a research report on Thursday, October 8th. UBS Group lifted their price target on Leidos from $124.00 to $138.00 and gave the company a “neutral” rating in a research note on Wednesday, August 5th. The Goldman Sachs Group reduced their price target on Leidos from $152.00 to $132.00 and set a “neutral” rating for the company in a report on Wednesday, August 12th. Finally, Robert W. Baird set a $150.00 price target on Leidos in a research report on Wednesday, August 5th. One research analyst has rated the stock with a Strong Buy rating, five have given a Buy rating and ten have assigned a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Hold” and a consensus price target of $151.50.

Leidos Price Performance

The stock has a market capitalization of $17.07 billion, a PE ratio of 12.17, a price-to-earnings-growth ratio of 1.48 and a beta of 0.55. The stock’s 50 day moving average is $129.31 and its two-hundred day moving average is $140.77. The company has a debt-to-equity ratio of 1.15, a quick ratio of 1.60 and a current ratio of 1.60.

Leidos (NYSE:LDOS) last posted its quarterly earnings data on Tuesday, November 3rd. The aerospace company reported $3.62 EPS for the quarter, topping the consensus estimate of $3.04 by $0.58. The company had revenue of $4.63 billion during the quarter, compared to analyst estimates of $4.71 billion. Leidos had a return on equity of 31.48% and a net margin of 7.97%. Leidos’s quarterly revenue was up 3.6% on a year-over-year basis. During the same period in the previous year, the business earned $3.05 EPS. On average, equities analysts anticipate that Leidos Holdings, Inc. will post 12.50 EPS for the current fiscal year.

Leidos Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 15th will be issued a dividend of $0.45 per share. The ex-dividend date of this dividend is Tuesday, December 15th. This is a positive change from Leidos’s previous quarterly dividend of $0.43. This represents a $1.80 dividend on an annualized basis and a dividend yield of 1.3%. Leidos’s payout ratio is currently 16.04%.

Leidos announced that its Board of Directors has approved a share buyback plan on Friday, July 31st that allows the company to repurchase 20,000,000 shares. This repurchase authorization allows the aerospace company to repurchase shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s management believes its stock is undervalued.

Insider Transactions at Leidos

In other news, Director Gary May sold 1,000 shares of the business’s stock in a transaction that occurred on Tuesday, September 1st. The stock was sold at an average price of $140.85, for a total transaction of $140,850.00. Following the transaction, the director directly owned 10,204 shares in the company, valued at $1,437,233.40. The trade was a 8.93% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, Director Noel B. Geer sold 10,000 shares of the company’s stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $140.66, for a total value of $1,406,600.00. Following the completion of the sale, the director owned 34,274 shares of the company’s stock, valued at $4,820,980.84. This trade represents a 22.59% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders own 0.77% of the company’s stock.

Institutional Investors Weigh In On Leidos

A number of hedge funds have recently modified their holdings of LDOS. Renaissance Technologies LLC acquired a new stake in Leidos during the first quarter worth approximately $20,225,000. Empowered Funds LLC boosted its holdings in shares of Leidos by 169.0% in the first quarter. Empowered Funds LLC now owns 144,847 shares of the aerospace company’s stock valued at $22,527,000 after acquiring an additional 90,991 shares during the period. BlackRock Inc. purchased a new position in shares of Leidos during the second quarter worth approximately $1,024,436,000. Insight Wealth Strategies LLC grew its position in shares of Leidos by 55.1% during the second quarter. Insight Wealth Strategies LLC now owns 42,747 shares of the aerospace company’s stock worth $4,406,000 after acquiring an additional 15,192 shares during the last quarter. Finally, Amundi increased its holdings in shares of Leidos by 9.3% in the 2nd quarter. Amundi now owns 165,512 shares of the aerospace company’s stock valued at $17,043,000 after acquiring an additional 14,049 shares during the period. Hedge funds and other institutional investors own 76.12% of the company’s stock.

About Leidos

Leidos Holdings, Inc (NYSE: LDOS) is a technology, engineering and science company that provides services and solutions to government and commercial customers. Its work supports defense, intelligence, civil government, health and transportation missions, with offerings that include information technology modernization, systems integration, cybersecurity, data analytics, artificial intelligence, engineering and mission operations.

The company also provides health technology and scientific services, transportation management systems, aviation and security solutions, and support for complex government programs.