Leonardo DRS (NASDAQ:DRS) Reaches New 1-Year High After Better-Than-Expected Earnings

Leonardo DRS, Inc. (NASDAQ:DRS) hit a new 52-week high during trading on Wednesday following a stronger than expected earnings report. The company traded as high as $32.06 and last traded at $32.06, with a volume of 100157 shares changing hands. The stock had previously closed at $28.40.

The company reported $0.24 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.20 by $0.04. The firm had revenue of $812.00 million during the quarter, compared to analysts’ expectations of $775.44 million. Leonardo DRS had a net margin of 6.23% and a return on equity of 9.82%. The business’s revenue was up 15.5% compared to the same quarter last year. During the same period in the previous year, the business posted $0.20 EPS.

Analyst Upgrades and Downgrades

A number of research firms recently weighed in on DRS. Bank of America cut Leonardo DRS from a “buy” rating to a “neutral” rating and upped their price target for the stock from $26.00 to $30.00 in a report on Tuesday, September 24th. Truist Financial upped their target price on Leonardo DRS from $30.00 to $32.00 and gave the stock a “buy” rating in a research note on Wednesday, July 31st. Robert W. Baird lifted their price target on shares of Leonardo DRS from $30.00 to $40.00 and gave the company an “outperform” rating in a research note on Thursday. Finally, BTIG Research upped their price objective on shares of Leonardo DRS from $30.00 to $33.00 and gave the stock a “buy” rating in a research report on Thursday, August 1st. Three analysts have rated the stock with a hold rating and three have given a buy rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $30.83.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Blair William & Co. IL boosted its stake in Leonardo DRS by 1.1% during the 2nd quarter. Blair William & Co. IL now owns 36,850 shares of the company’s stock worth $940,000 after purchasing an additional 400 shares during the last quarter. Arizona State Retirement System boosted its position in Leonardo DRS by 2.0% during the second quarter. Arizona State Retirement System now owns 22,056 shares of the company’s stock worth $563,000 after acquiring an additional 424 shares during the last quarter. New York State Teachers Retirement System boosted its position in Leonardo DRS by 6.9% during the third quarter. New York State Teachers Retirement System now owns 6,722 shares of the company’s stock worth $190,000 after acquiring an additional 432 shares during the last quarter. Comerica Bank grew its stake in Leonardo DRS by 23.7% during the 1st quarter. Comerica Bank now owns 2,750 shares of the company’s stock valued at $61,000 after acquiring an additional 527 shares in the last quarter. Finally, Stephens Inc. AR raised its holdings in Leonardo DRS by 7.7% in the 3rd quarter. Stephens Inc. AR now owns 12,656 shares of the company’s stock valued at $357,000 after acquiring an additional 907 shares during the last quarter. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Price Performance

The firm has a market capitalization of $7.93 billion, a PE ratio of 40.64, a price-to-earnings-growth ratio of 2.05 and a beta of 0.96. The stock’s 50 day simple moving average is $28.44 and its two-hundred day simple moving average is $26.16. The company has a debt-to-equity ratio of 0.15, a quick ratio of 1.60 and a current ratio of 2.01.

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.