Susan M Stalnecker Backs Up Beliefs With A Notable Acquisition In Leidos Holdings Stock Options

A noteworthy insider acquisition was disclosed on May 7, as Stalnecker, Board Member at Leidos Holdings LDOS, reported the acquisition of stock options for 1,179 shares.

What Happened: Uncovered in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Stalnecker, Board Member at Leidos Holdings, executed an insider options move. This move consisted of acquiring stock options for 1,179 shares of LDOS, granting Stalnecker the right to purchase the company's stock at an exercise price of $142.66 per share.

Leidos Holdings shares are trading, exhibiting up of 1.31% and priced at $144.72 during Wednesday's morning. This values Stalnecker's 1,179 shares at $2,423.

Discovering Leidos Holdings: A Closer Look

Leidos Holdings Inc is a technology, engineering, and science company that provides services and solutions in the defense, intelligence, civil, and health markets, both domestically and internationally. Company customer includes the U.S. Department of Defense ("DoD"), the U.S. Intelligence Community, the U.S. Department of Homeland Security ("DHS"), the Federal Aviation Administration ("FAA"), the Department of Veterans Affairs ("VA"), and many other U.S. civilian, state and local government agencies, etc. The company is engaged in three reportable segments; Defense Solutions, Civil, and Health. Defense Solutions provides technologically latest services, solutions, and products to a broad customer base. It generates key revenue from Defense Solutions.

A Deep Dive into Leidos Holdings's Financials

Revenue Growth: Leidos Holdings displayed positive results in 3 months. As of 31 March, 2024, the company achieved a solid revenue growth rate of approximately 7.46%. This indicates a notable increase in the company's top-line earnings. As compared to competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Profitability Metrics: Unlocking Value

• Gross Margin: The company shows a low gross margin of 16.05%, suggesting potential challenges in cost control and profitability compared to its peers.

• Earnings per Share (EPS): The company excels with an EPS that surpasses the industry average. With a current EPS of 2.09, Leidos Holdings showcases strong earnings per share.

Debt Management: With a below-average debt-to-equity ratio of 1.22, Leidos Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

Assessing Valuation Metrics:

• Price to Earnings (P/E) Ratio: Leidos Holdings's P/E ratio of 61.05 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a P/S ratio of 1.25 below industry standards, the stock shows potential undervaluation, making it an appealing investment option for those focusing on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio of 21.91, the company's market valuation exceeds industry averages.

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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The Impact of Insider Transactions on Investments

Insider transactions should be considered alongside other factors when making investment decisions, as they can offer important insights.

Considering the legal perspective, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, according to Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are mandated to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.

Pointing towards optimism, a company insider's new purchase signals their positive anticipation for the stock to rise.

Nevertheless, insider sells may not necessarily indicate a bearish view and can be influenced by various factors.

Breaking Down the Significance of Transaction Codes

Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C signals the conversion of an option, and transaction code A denotes a grant, award, or other acquisition of securities from the company.

Check Out The Full List Of Leidos Holdings's Insider Trades.

This article was generated by Benzinga's automated content engine and reviewed by an editor.