Leidos (NYSE:LDOS) Shares Gap Up on Better-Than-Expected Earnings

Leidos Holdings, Inc. (NYSE:LDOS)’s stock price gapped up before the market opened on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $131.62, but opened at $139.09. Leidos shares last traded at $136.40, with a volume of 685,962 shares trading hands.

The aerospace company reported $2.29 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.70 by $0.59. The company had revenue of $3.98 billion during the quarter, compared to analysts’ expectations of $3.82 billion. Leidos had a net margin of 1.29% and a return on equity of 22.92%. The firm’s revenue was up 7.5% on a year-over-year basis. During the same quarter in the prior year, the company earned $1.47 EPS.

Leidos Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Friday, June 28th. Stockholders of record on Friday, June 14th will be issued a $0.38 dividend. The ex-dividend date of this dividend is Friday, June 14th. This represents a $1.52 annualized dividend and a dividend yield of 1.07%. Leidos’s dividend payout ratio is currently 107.04%.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on LDOS shares. TheStreet upgraded Leidos from a “c” rating to a “b” rating in a research report on Tuesday, February 13th. Barclays raised shares of Leidos from an “equal weight” rating to an “overweight” rating in a research note on Friday, January 5th. Bank of America raised their price target on shares of Leidos from $125.00 to $145.00 and gave the stock a “buy” rating in a report on Wednesday, March 27th. Jefferies Financial Group upped their price objective on shares of Leidos from $130.00 to $135.00 and gave the company a “hold” rating in a research note on Wednesday, April 10th. Finally, Royal Bank of Canada raised their target price on Leidos from $120.00 to $140.00 and gave the stock a “sector perform” rating in a research note on Wednesday. Two research analysts have rated the stock with a hold rating and eleven have given a buy rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $141.17.

Insider Buying and Selling

In related news, Director David G. Fubini sold 7,874 shares of Leidos stock in a transaction dated Wednesday, March 13th. The shares were sold at an average price of $127.89, for a total transaction of $1,007,005.86. Following the completion of the transaction, the director now directly owns 14,696 shares of the company’s stock, valued at approximately $1,879,471.44. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. In other news, Director David G. Fubini sold 7,874 shares of the company’s stock in a transaction on Wednesday, March 13th. The stock was sold at an average price of $127.89, for a total transaction of $1,007,005.86. Following the transaction, the director now directly owns 14,696 shares of the company’s stock, valued at $1,879,471.44. The sale was disclosed in a filing with the SEC, which is available at the SEC website. Also, Director Gary Stephen May sold 2,745 shares of the business’s stock in a transaction that occurred on Wednesday, February 21st. The shares were sold at an average price of $124.49, for a total transaction of $341,725.05. Following the transaction, the director now directly owns 11,352 shares of the company’s stock, valued at $1,413,210.48. The disclosure for this sale can be found here. 0.96% of the stock is owned by insiders.

Hedge Funds Weigh In On Leidos

A number of hedge funds have recently modified their holdings of the company. Janney Montgomery Scott LLC increased its position in Leidos by 11.6% during the first quarter. Janney Montgomery Scott LLC now owns 21,172 shares of the aerospace company’s stock valued at $2,775,000 after acquiring an additional 2,201 shares during the last quarter. BNP Paribas Financial Markets lifted its holdings in shares of Leidos by 76.3% in the 1st quarter. BNP Paribas Financial Markets now owns 212,345 shares of the aerospace company’s stock worth $27,836,000 after buying an additional 91,891 shares during the period. Mirae Asset Global Investments Co. Ltd. grew its holdings in Leidos by 10.1% during the 1st quarter. Mirae Asset Global Investments Co. Ltd. now owns 51,115 shares of the aerospace company’s stock worth $6,701,000 after acquiring an additional 4,696 shares in the last quarter. Braun Stacey Associates Inc. boosted its stake in shares of Leidos by 70.9% during the first quarter. Braun Stacey Associates Inc. now owns 185,868 shares of the aerospace company’s stock valued at $24,366,000 after purchasing an additional 77,087 shares in the last quarter. Finally, Smith Group Asset Management LLC purchased a new position in shares of Leidos in the 1st quarter valued at $13,397,000. 76.12% of the stock is currently owned by institutional investors.

Leidos Price Performance

The company has a quick ratio of 1.24, a current ratio of 1.34 and a debt-to-equity ratio of 1.10. The company has a market cap of $19.22 billion, a PE ratio of 100.15, a price-to-earnings-growth ratio of 1.82 and a beta of 0.70. The firm has a 50 day simple moving average of $128.44 and a 200-day simple moving average of $114.73.

Leidos Company Profile

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