Featured News Headlines
- 1 Leonardo Stock- Leonardo DRS Sees Strong Institutional Demand Despite Insider Sales
- 2 Institutional Positioning: Mixed Moves Signal Sector Rotation
- 3 Share Performance: Trending Near 52-Week Highs
- 4 Analyst Ratings: Target Price Raised by Multiple Firms
- 5 Financial Performance: Earnings Beat and Revenue Growth
- 6 Dividend and Yield: A Low but Steady Payout
- 7 Insider Activity: Executive Sale Raises Eyebrows
Leonardo Stock- Leonardo DRS Sees Strong Institutional Demand Despite Insider Sales
Leonardo Stock– Leonardo DRS, Inc. (NASDAQ: DRS) continues to attract investor attention as its share price approaches record highs and institutional support remains strong. Despite one major firm reducing its stake, recent filings and analyst commentary suggest optimism surrounding the defense contractor’s long-term trajectory.
Institutional Positioning: Mixed Moves Signal Sector Rotation
According to a recent SEC filing, Brown Advisory Inc. significantly reduced its stake in Leonardo DRS during Q1 2024, selling 72.7% of its holdings—down to 8,651 shares worth approximately $284,000. While this exit may appear bearish at first glance, other institutional investors are taking a notably different approach.
- Envestnet Asset Management Inc. increased its holdings by 5.6%, now owning 35,121 shares valued at $1.15 million.
- Huntleigh Advisors Inc. boosted its position by 6.8%, with a total of 74,708 shares valued at $2.45 million.
- Harel Insurance & Financial Services Ltd. raised its stake by nearly 39%, now holding 27,725 shares worth $912,000.
- Robeco Institutional Asset Management B.V. ramped up its position by 172.7% to 17,971 shares.
- Yorktown Management & Research Co Inc. entered with a new stake valued at $260,000.
Overall, institutional investors and hedge funds currently hold 18.76% of the company’s outstanding shares, indicating continued interest from long-term capital.
Leonardo DRS stock closed at $48.33, up 0.7% on the day, nearing its 52-week high of $48.99. The company’s performance has been strong:
- Market Cap: $12.86 billion
- P/E Ratio: 55.55
- PEG Ratio: 2.76
- Beta: 0.63
- 50-Day Moving Average: $44.02
- 200-Day Moving Average: $37.34
The stock has demonstrated strong upward momentum, outperforming its moving averages and benefiting from sector-wide interest in defense and technology stocks.
Analyst Ratings: Target Price Raised by Multiple Firms
Wall Street analysts have mostly maintained a bullish outlook for DRS. Here’s how the sentiment breaks down:
- Goldman Sachs initiated coverage with a Buy rating and a $49.00 target.
- Truist Financial raised its target from $45.00 to $51.00, reaffirming its Buy rating.
- BTIG Research also issued a Buy rating with a $49.00 price target.
- JPMorgan Chase moved its rating to Neutral, increasing its target to $48.00 from $33.00.
- Wall Street Zen downgraded the stock to Hold.
According to MarketBeat, the consensus rating is Moderate Buy, with a target price average of $45.86, reflecting moderate upside potential from current levels.
Financial Performance: Earnings Beat and Revenue Growth
In Q1 2024, Leonardo DRS delivered better-than-expected earnings:
- Earnings Per Share (EPS): $0.20 vs. $0.17 expected
- Revenue: $799 million vs. $736.7 million forecast
- Net Margin: 7.0%
- Return on Equity (ROE): 10.63%
This performance represents a 16.1% increase in revenue year-over-year and continues a solid trend of operational growth. Analysts expect full-year 2024 EPS to reach $1.04.
Dividend and Yield: A Low but Steady Payout
The company declared a quarterly dividend of $0.09, paid on June 5 to shareholders of record as of May 22. That equates to an annual dividend of $0.36, yielding approximately 0.74% at current prices. The dividend payout ratio stands at 41.38%, suggesting room for future increases depending on earnings stability.
Insider Activity: Executive Sale Raises Eyebrows
In a recent insider transaction, David W. Carey, a member of the Board of Directors at Leonardo DRS, sold 6,438 shares of the company’s stock. The sale occurred at an average price of $45.94 per share, resulting in gross proceeds of approximately $295,762. This move reduced his total direct holdings to 23,882 shares, marking a decline of about 21%in his ownership position.
While insider sales are relatively common and can occur for a variety of personal or financial reasons—such as tax obligations, diversification, or estate planning—this transaction comes at a time when Leonardo DRS stock is trading near its 52-week high. Given that the company has recently outperformed earnings expectations and has seen increased institutional interest, the timing of this sale may prompt investors to keep a closer eye on future insider actions.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
