Stock Repurchase Plan Announced by Leonardo DRS (NASDAQ:DRS)

Leonardo DRS (NASDAQ:DRS) declared that its board has initiated a share repurchase program on Thursday, February 20th, RTT News reports. The company plans to buyback $75.00 million in outstanding shares. This buyback authorization allows the company to repurchase up to 0.9% of its stock through open market purchases. Stock buyback programs are generally a sign that the company’s board believes its shares are undervalued.

Wall Street Analyst Weigh In

A number of research firms have issued reports on DRS. JPMorgan Chase & Co. increased their price target on Leonardo DRS from $32.00 to $33.00 and gave the stock a “neutral” rating in a report on Friday. Truist Financial increased their price target on Leonardo DRS from $36.00 to $37.00 and gave the stock a “buy” rating in a report on Tuesday, January 14th. Finally, Robert W. Baird increased their price target on Leonardo DRS from $30.00 to $40.00 and gave the stock an “outperform” rating in a report on Thursday, October 31st. Three research analysts have rated the stock with a hold rating and three have assigned a buy rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $33.17.

Leonardo DRS Price Performance

Shares of DRS opened at $28.85 on Friday. Leonardo DRS has a 12-month low of $19.88 and a 12-month high of $37.99. The business’s fifty day moving average is $33.57 and its 200 day moving average is $31.51. The company has a quick ratio of 1.70, a current ratio of 2.11 and a debt-to-equity ratio of 0.14. The stock has a market cap of $7.63 billion, a P/E ratio of 38.99, a P/E/G ratio of 1.30 and a beta of 1.01.

Leonardo DRS (NASDAQ:DRS) last issued its earnings results on Thursday, February 20th. The company reported $0.38 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.36 by $0.02. Leonardo DRS had a return on equity of 9.71% and a net margin of 6.23%. The company had revenue of $981.00 million for the quarter, compared to analysts’ expectations of $942.18 million. Sell-side analysts anticipate that Leonardo DRS will post 0.92 earnings per share for the current fiscal year.

Leonardo DRS Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 27th. Investors of record on Thursday, March 13th will be issued a $0.09 dividend. This represents a $0.36 dividend on an annualized basis and a dividend yield of 1.25%. The ex-dividend date of this dividend is Thursday, March 13th.

Insider Buying and Selling

In related news, COO John Baylouny sold 3,529 shares of the stock in a transaction on Wednesday, January 8th. The stock was sold at an average price of $31.90, for a total value of $112,575.10. Following the completion of the sale, the chief operating officer now directly owns 78,334 shares of the company’s stock, valued at approximately $2,498,854.60. This represents a 4.31 % decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO William Lynn III sold 45,000 shares of the stock in a transaction on Monday, December 2nd. The shares were sold at an average price of $34.07, for a total value of $1,533,150.00. Following the completion of the sale, the chief executive officer now directly owns 234,937 shares of the company’s stock, valued at $8,004,303.59. The trade was a 16.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 150,089 shares of company stock worth $5,178,619 in the last ninety days. Corporate insiders own 0.12% of the company’s stock.

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.