Leonardo DRS, Inc. (NASDAQ:DRS) Stock Has Average Target Price of $53.17 According to Analysts

Leonardo DRS, Inc. (NASDAQ:DRS) has been given a consensus recommendation of “Buy” by the seven analysts that are covering the company, Marketbeat reports. Two research analysts have rated the stock with a hold recommendation, three have assigned a buy recommendation and two have issued a strong buy recommendation on the company. The average 12 month target price among brokerages that have covered the stock in the last year is $53.17.

A number of research analysts have issued reports on DRS shares. Guggenheim started coverage on shares of Leonardo DRS in a research report on Monday, September 14th. They set a “buy” rating and a $51.00 target price on the stock. Weiss Ratings upgraded Leonardo DRS from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, August 6th. Finally, JPMorgan Chase & Co. boosted their price objective on shares of Leonardo DRS from $48.00 to $53.00 and gave the company a “neutral” rating in a report on Friday, July 31st.

Key Leonardo DRS News

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

• Positive Sentiment: $500 million counter-UAS contract: Leonardo DRS received a three-year, $500 million ceiling indefinite-delivery/indefinite-quantity contract from Joint Interagency Task Force 401 to accelerate delivery of tactical expeditionary sensing capabilities for counter-drone missions. The award strengthens the company’s position in a growing defense priority. Leonardo DRS Awarded JIATF-401 IDIQ Contract
• Positive Sentiment: 10-year NASA contract: DRS was named a prime contractor under NASA’s SEWP VI program, expanding federal-agency access to its mission-critical technologies. The long duration could improve the company’s visibility across future government procurement opportunities. Leonardo DRS NASA SEWP VI Contract
• Positive Sentiment: Additional Army demand: The U.S. Army placed a contract worth up to $63 million for DRS FWS-I thermal weapon sights, adding to evidence of continued demand for the company’s electro-optical and sensing products. U.S. Army FWS-I Thermal Weapon Sights Order
• Positive Sentiment: Analyst optimism after selloff: One analysis upgraded DRS to “Strong Buy,” citing better-than-expected quarterly results, 10% revenue growth, stronger adjusted EBITDA and EPS growth, along with potential benefits from the pending $450 million Raft acquisition. Leonardo DRS Strong Buy Analysis
• Neutral Sentiment: The contract ceilings do not guarantee that all authorized dollars will be awarded, so investors will likely look for subsequent task orders and revenue conversion. DRS shares remain below their 50-day and 200-day moving averages following a recent selloff.

Leonardo DRS Stock Performance

Shares of NASDAQ:DRS opened at $35.47 on Friday. The stock has a market capitalization of $9.47 billion, a price-to-earnings ratio of 29.81, a price-to-earnings-growth ratio of 2.15 and a beta of 0.32. The business’s fifty day moving average price is $38.46 and its two-hundred day moving average price is $42.57. Leonardo DRS has a fifty-two week low of $32.43 and a fifty-two week high of $50.59. The company has a debt-to-equity ratio of 0.05, a current ratio of 1.92 and a quick ratio of 1.56.

Leonardo DRS (NASDAQ:DRS) last released its quarterly earnings results on Friday, July 31st. The company reported $0.35 EPS for the quarter, topping analysts’ consensus estimates of $0.27 by $0.08. Leonardo DRS had a return on equity of 12.97% and a net margin of 8.52%. The business had revenue of $913.00 million for the quarter, compared to analyst estimates of $903.27 million. During the same period in the prior year, the company earned $0.23 EPS. Leonardo DRS’s revenue for the quarter was up 10.1% on a year-over-year basis. As a group, analysts predict that Leonardo DRS will post 1.37 EPS for the current fiscal year.

Leonardo DRS Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, August 27th. Investors of record on Thursday, August 13th were given a $0.09 dividend. This represents a $0.36 annualized dividend and a yield of 1.0%. The ex-dividend date of this dividend was Thursday, August 13th. Leonardo DRS’s dividend payout ratio is 30.25%.

Insider Buying and Selling

In other news, EVP Jason Rinsky sold 3,864 shares of the company’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $45.81, for a total value of $177,009.84. Following the sale, the executive vice president directly owned 23,581 shares in the company, valued at approximately $1,080,245.61. This represents a 14.08% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CFO Michael Dippold sold 20,317 shares of the firm’s stock in a transaction that occurred on Wednesday, September 2nd. The stock was sold at an average price of $37.18, for a total value of $755,386.06. Following the transaction, the chief financial officer owned 35,143 shares of the company’s stock, valued at $1,306,616.74. This trade represents a 36.63% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.25% of the stock is currently owned by insiders.

Institutional Trading of Leonardo DRS

A number of hedge funds and other institutional investors have recently modified their holdings of DRS. BlackRock Inc. bought a new stake in shares of Leonardo DRS during the second quarter worth $212,883,000. Stephens Investment Management Group LLC grew its stake in shares of Leonardo DRS by 107.6% during the first quarter. Stephens Investment Management Group LLC now owns 2,118,331 shares of the company’s stock worth $94,308,000 after purchasing an additional 1,098,108 shares during the period. Bank of America Corp DE bought a new stake in Leonardo DRS in the second quarter valued at about $24,941,000. Connor Clark & Lunn Investment Management Ltd. bought a new position in Leonardo DRS during the second quarter worth about $24,857,000. Finally, Bank of New York Mellon Corp grew its position in shares of Leonardo DRS by 3.1% during the 1st quarter. Bank of New York Mellon Corp now owns 517,166 shares of the company’s stock worth $23,024,000 after buying an additional 15,349 shares during the period. Institutional investors and hedge funds own 18.76% of the company’s stock.

About Leonardo DRS

Leonardo DRS, Inc is a defense technology company that develops and manufactures advanced systems and equipment for the U.S. military, government agencies and allied defense customers. The company focuses on technologies intended to improve situational awareness, battlefield connectivity, survivability and mission effectiveness.

Its products and services include sensing and surveillance systems, electronic warfare equipment, mission computing, networking and communications technologies, force-protection systems, power conversion and propulsion solutions, and advanced materials.