Leidos (NYSE:LDOS) Shares Gap Up – Should You Buy?

Leidos Holdings, Inc. (NYSE:LDOS)’s stock price gapped up prior to trading on Monday . The stock had previously closed at $126.82, but opened at $131.26. Leidos shares last traded at $128.19, with a volume of 294,577 shares traded.

Wall Street Analysts Forecast Growth

Several equities analysts have weighed in on LDOS shares. Wells Fargo & Company cut their target price on Leidos from $197.00 to $191.00 and set an “overweight” rating on the stock in a report on Wednesday. Cantor Fitzgerald upgraded Leidos to a “strong-buy” rating in a report on Tuesday. TD Cowen downgraded Leidos from a “buy” rating to a “hold” rating and lowered their price target for the company from $200.00 to $165.00 in a report on Wednesday, January 8th. William Blair cut shares of Leidos from an “outperform” rating to a “market perform” rating in a research note on Friday, February 21st. Finally, Royal Bank of Canada raised their target price on shares of Leidos from $145.00 to $180.00 and gave the company a “sector perform” rating in a research note on Wednesday, October 30th. Six equities research analysts have rated the stock with a hold rating, nine have assigned a buy rating and two have given a strong buy rating to the company. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $175.87.

Leidos Trading Down 0.1 %

The stock has a market cap of $17.14 billion, a price-to-earnings ratio of 14.14, a PEG ratio of 1.65 and a beta of 0.66. The business’s 50 day simple moving average is $143.49 and its 200 day simple moving average is $156.63. The company has a quick ratio of 1.13, a current ratio of 1.21 and a debt-to-equity ratio of 0.91.

Leidos (NYSE:LDOS) last announced its quarterly earnings data on Tuesday, February 11th. The aerospace company reported $2.37 earnings per share for the quarter, beating the consensus estimate of $2.24 by $0.13. Leidos had a return on equity of 30.93% and a net margin of 7.53%. On average, research analysts expect that Leidos Holdings, Inc. will post 10.62 EPS for the current fiscal year.

Leidos Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Friday, March 28th. Stockholders of record on Friday, March 14th will be paid a $0.40 dividend. This represents a $1.60 annualized dividend and a dividend yield of 1.22%. The ex-dividend date is Friday, March 14th. Leidos’s dividend payout ratio is currently 17.32%.

Insider Buying and Selling

In related news, Director Gary Stephen May sold 2,128 shares of the stock in a transaction on Tuesday, February 18th. The shares were sold at an average price of $131.24, for a total transaction of $279,278.72. Following the transaction, the director now directly owns 11,264 shares of the company’s stock, valued at $1,478,287.36. This represents a 15.89 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Robert C. Kovarik, Jr. sold 1,511 shares of Leidos stock in a transaction on Thursday, February 13th. The shares were sold at an average price of $134.56, for a total transaction of $203,320.16. Following the completion of the sale, the director now directly owns 6,408 shares of the company’s stock, valued at approximately $862,260.48. This trade represents a 19.08 % decrease in their ownership of the stock. The disclosure for this sale can be found here. 0.96% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Leidos

Several hedge funds and other institutional investors have recently modified their holdings of LDOS. Mirae Asset Global Investments Co. Ltd. grew its position in Leidos by 39.6% in the 4th quarter. Mirae Asset Global Investments Co. Ltd. now owns 12,464 shares of the aerospace company’s stock valued at $1,800,000 after purchasing an additional 3,534 shares during the period. Fiduciary Trust Co raised its stake in shares of Leidos by 36.4% during the 3rd quarter. Fiduciary Trust Co now owns 23,941 shares of the aerospace company’s stock worth $3,902,000 after purchasing an additional 6,395 shares during the period. Atria Investments Inc increased its stake in shares of Leidos by 100.1% during the 3rd quarter. Atria Investments Inc now owns 8,837 shares of the aerospace company’s stock worth $1,440,000 after purchasing an additional 4,421 shares during the last quarter. Los Angeles Capital Management LLC grew its position in shares of Leidos by 21.4% in the third quarter. Los Angeles Capital Management LLC now owns 55,165 shares of the aerospace company’s stock valued at $8,992,000 after purchasing an additional 9,710 shares in the last quarter. Finally, Rockefeller Capital Management L.P. bought a new stake in shares of Leidos during the 3rd quarter valued at $4,622,000. Institutional investors own 76.12% of the company’s stock.

About Leidos

Leidos Holdings, Inc, together with its subsidiaries, provides services and solutions in the defense, intelligence, civil, and health markets in the United States and internationally. The company operates through Defense Solutions, Civil, and Health segments. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S.