Leonardo DRS (NASDAQ:DRS) Reaches New 12-Month High on Better-Than-Expected Earnings

Leonardo DRS, Inc. (NASDAQ:DRS) shares reached a new 52-week high on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $32.06 and last traded at $32.06, with a volume of 100157 shares trading hands. The stock had previously closed at $28.40.

The company reported $0.24 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 the consensus estimate of $775.44 million. Leonardo DRS had a net margin of 6.23% and a return on equity of 9.82%. Leonardo DRS’s revenue for the quarter was up 15.5% on a year-over-year basis. During the same quarter in the prior year, the firm earned $0.20 EPS.

Wall Street Analysts Forecast Growth

Several brokerages have issued reports on DRS. BTIG Research boosted their price objective on shares of Leonardo DRS from $30.00 to $33.00 and gave the company a “buy” rating in a research note on Thursday, August 1st. Bank of America cut shares of 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 research note on Tuesday, September 24th. Truist Financial upped their price target on shares of Leonardo DRS from $30.00 to $32.00 and gave the stock a “buy” rating in a research note on Wednesday, July 31st. Finally, Robert W. Baird upped their price target on shares of Leonardo DRS from $30.00 to $40.00 and gave the stock an “outperform” rating in a research note on Thursday. Three equities research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $30.83.

Institutional Investors Weigh In On Leonardo DRS

A number of large investors have recently added to or reduced their stakes in the business. Vanguard Group Inc. grew its stake in Leonardo DRS by 2.2% in the 1st quarter. Vanguard Group Inc. now owns 7,554,321 shares of the company’s stock valued at $166,875,000 after acquiring an additional 164,971 shares during the last quarter. Driehaus Capital Management LLC grew its stake in Leonardo DRS by 4.7% in the 2nd quarter. Driehaus Capital Management LLC now owns 2,281,546 shares of the company’s stock valued at $58,202,000 after acquiring an additional 102,198 shares during the last quarter. Price T Rowe Associates Inc. MD grew its stake in Leonardo DRS by 15.4% in the 1st quarter. Price T Rowe Associates Inc. MD now owns 2,180,347 shares of the company’s stock valued at $48,165,000 after acquiring an additional 290,188 shares during the last quarter. Kennedy Capital Management LLC grew its stake in Leonardo DRS by 1.8% in the 1st quarter. Kennedy Capital Management LLC now owns 768,163 shares of the company’s stock valued at $16,969,000 after acquiring an additional 13,830 shares during the last quarter. Finally, Dimensional Fund Advisors LP acquired a new stake in Leonardo DRS in the 2nd quarter valued at about $16,916,000. 18.76% of the stock is owned by institutional investors and hedge funds.

Leonardo DRS Stock Performance

The stock has a market capitalization of $7.93 billion, a price-to-earnings ratio of 40.64, a PEG ratio of 2.05 and a beta of 0.96. The stock’s 50 day moving average is $28.44 and its 200 day moving average is $26.16. 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 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.