Short Interest in Leonardo DRS, Inc. (NASDAQ:DRS) Declines By 8.4%

Leonardo DRS, Inc. (NASDAQ:DRS) saw a large decrease in short interest in the month of July. As of July 31st, there was short interest totalling 1,960,000 shares, a decrease of 8.4% from the July 15th total of 2,140,000 shares. Based on an average trading volume of 642,500 shares, the days-to-cover ratio is presently 3.1 days. Currently, 2.7% of the company’s shares are short sold.

Leonardo DRS Price Performance

Shares of DRS traded up $0.06 during mid-day trading on Monday, hitting $27.81. The company’s stock had a trading volume of 510,079 shares, compared to its average volume of 642,743. The company has a current ratio of 2.01, a quick ratio of 1.60 and a debt-to-equity ratio of 0.15. Leonardo DRS has a 1-year low of $15.81 and a 1-year high of $29.85. The firm has a 50-day simple moving average of $26.62 and a 200 day simple moving average of $23.58. The firm has a market capitalization of $7.32 billion, a P/E ratio of 39.49, a P/E/G ratio of 1.98 and a beta of 0.89.

Leonardo DRS (NASDAQ:DRS) last announced its quarterly earnings results on Tuesday, July 30th. The company reported $0.18 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.14 by $0.04. Leonardo DRS had a net margin of 6.12% and a return on equity of 9.48%. The company had revenue of $753.00 million for the quarter, compared to the consensus estimate of $680.38 million. During the same quarter in the prior year, the firm earned $0.15 earnings per share. The company’s revenue for the quarter was up 19.9% compared to the same quarter last year. Analysts predict that Leonardo DRS will post 0.86 EPS for the current fiscal year.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the company. Nisa Investment Advisors LLC grew its holdings in Leonardo DRS by 1,325.9% during the 2nd quarter. Nisa Investment Advisors LLC now owns 1,155 shares of the company’s stock valued at $29,000 after purchasing an additional 1,074 shares in the last quarter. EntryPoint Capital LLC boosted its position in shares of Leonardo DRS by 165.8% during the first quarter. EntryPoint Capital LLC now owns 1,656 shares of the company’s stock worth $37,000 after buying an additional 1,033 shares during the period. PNC Financial Services Group Inc. acquired a new position in shares of Leonardo DRS during the fourth quarter valued at $35,000. Harel Insurance Investments & Financial Services Ltd. acquired a new position in shares of Leonardo DRS during the first quarter valued at approximately $50,000. Finally, Comerica Bank boosted its stake in Leonardo DRS by 23.7% during the first quarter. Comerica Bank now owns 2,750 shares of the company’s stock valued at $61,000 after buying an additional 527 shares in the last quarter. 18.76% of the stock is owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

A number of research analysts have weighed in on the company. Truist Financial upped their target price on Leonardo DRS from $30.00 to $32.00 and gave the stock a “buy” rating in a report on Wednesday, July 31st. BTIG Research increased their price objective on shares of Leonardo DRS from $30.00 to $33.00 and gave the stock a “buy” rating in a research note on Thursday, August 1st. Morgan Stanley assumed coverage on shares of Leonardo DRS in a report on Friday, May 24th. They issued an “equal weight” rating and a $26.00 target price for the company. Finally, Robert W. Baird raised their target price on shares of Leonardo DRS from $26.00 to $30.00 and gave the company an “outperform” rating in a report on Wednesday, July 31st. Two analysts have rated the stock with a hold rating and four have given a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $28.50.

Leonardo DRS Company Profile

Leonardo DRS, Inc, together with its subsidiaries, provides defense electronic products and systems, and military support services. It operates through Advanced Sensing and Computing (ASC) segment, and Integrated Mission Systems (IMS) segments. The ASC segment designs, develops, and manufacture sensing and network computing technology that enables real-time situational awareness required for enhanced operational decision making and execution; and offers sensing capabilities span applications, such as missions requiring advanced detection, precision targeting and surveillance sensing, long range electro-optic/infrared, signals intelligence, and other intelligence systems including electronic warfare, ground vehicle sensing, active electronically scanned array tactical radars, dismounted soldier, and space sensing.