Leonardo DRS (NASDAQ:DRS) Hits New 52-Week High – Should You Buy?

Leonardo DRS, Inc. (NASDAQ:DRS)’s share price hit a new 52-week high during trading on Thursday . The company traded as high as $49.34 and last traded at $49.3370, with a volume of 371388 shares changing hands. The stock had previously closed at $46.11.

Wall Street Analyst Weigh In

Several research firms have weighed in on DRS. Morgan Stanley set a $47.00 target price on Leonardo DRS in a research report on Wednesday, February 25th. Weiss Ratings raised shares of Leonardo DRS from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, June 5th. Wall Street Zen upgraded shares of Leonardo DRS from a “hold” rating to a “buy” rating in a report on Sunday, May 10th. Bank of America upped their target price on shares of Leonardo DRS from $50.00 to $55.00 and gave the stock a “buy” rating in a research note on Wednesday, March 25th. Finally, Canaccord Genuity Group raised their price target on shares of Leonardo DRS from $52.00 to $54.00 and gave the company a “buy” rating in a research report on Wednesday, May 6th. One investment analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and four have given a Hold rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $52.00.

Leonardo DRS Stock Performance

The stock has a 50-day moving average price of $44.44 and a 200 day moving average price of $41.16. 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 firm has a market capitalization of $13.32 billion, a price-to-earnings ratio of 46.51, a P/E/G ratio of 3.42 and a beta of 0.34.

Leonardo DRS (NASDAQ:DRS) last issued its quarterly earnings results on Tuesday, May 5th. The company reported $0.26 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.21 by $0.05. Leonardo DRS had a net margin of 7.85% and a return on equity of 12.02%. The company had revenue of $846.00 million during the quarter, compared to the consensus estimate of $825.05 million. During the same quarter in the previous year, the firm earned $0.20 earnings per share. The firm’s quarterly revenue was up 5.9% on a year-over-year basis. Leonardo DRS has set its FY 2026 guidance at 1.260-1.300 EPS. On average, analysts forecast that Leonardo DRS, Inc. will post 1.3 EPS for the current year.

Leonardo DRS Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Tuesday, May 19th were issued a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend was Tuesday, May 19th. Leonardo DRS’s dividend payout ratio is 33.64%.

Insider Buying and Selling

In other news, CFO Michael Dippold sold 8,318 shares of the company’s stock in a transaction dated Monday, June 8th. The stock was sold at an average price of $46.48, for a total transaction of $386,620.64. Following the completion of the transaction, the chief financial officer directly owned 55,460 shares of the company’s stock, valued at approximately $2,577,780.80. This represents a 13.04% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Reuben Jeffery III acquired 25,000 shares of the company’s stock in a transaction dated Tuesday, May 19th. The stock was acquired at an average price of $42.77 per share, for a total transaction of $1,069,250.00. Following the acquisition, the director owned 25,000 shares in the company, valued at approximately $1,069,250. The trade was a ? increase in their position. The SEC filing for this purchase provides additional information. Insiders sold 76,089 shares of company stock valued at $3,491,236 over the last 90 days. 0.25% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Leonardo DRS

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. First Trust Advisors LP increased its stake in Leonardo DRS by 116.8% in the third quarter. First Trust Advisors LP now owns 3,661,214 shares of the company’s stock valued at $166,219,000 after purchasing an additional 1,972,596 shares during the last quarter. Norges Bank acquired a new position in shares of Leonardo DRS in the 4th quarter valued at $37,481,000. Stephens Investment Management Group LLC grew its position in shares of Leonardo DRS by 107.6% in the 1st quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company’s stock valued at $94,308,000 after buying an additional 1,098,108 shares during the last quarter. Millennium Management LLC grew its position in shares of Leonardo DRS by 152.1% in the 3rd quarter. Millennium Management LLC now owns 1,776,185 shares of the company’s stock valued at $80,639,000 after buying an additional 1,071,708 shares during the last quarter. Finally, AQR Capital Management LLC raised its stake in Leonardo DRS by 528.6% during the 3rd quarter. AQR Capital Management LLC now owns 1,273,444 shares of the company’s stock worth $56,000,000 after acquiring an additional 1,070,870 shares in the last quarter. 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.