Surya N Mohapatra Takes A Bullish Stance, Acquiring In Leidos Holdings Stock Options

Disclosed in a recent SEC filing, Surya N Mohapatra, Director at Leidos Holdings LDOS, made a strategic move by acquiring company stock options on May 7,.

What Happened: Mohapatra, Director at Leidos Holdings, acquired stock options for 1,179 shares of LDOS. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday. The options allow Mohapatra to buy the company's stock at $142.66 per share.

As of Wednesday morning, Leidos Holdings shares are up by 0.45%, with a current price of $143.49. This implies that Mohapatra's 1,179 shares have a value of $978.

Unveiling the Story Behind Leidos Holdings

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.

Understanding the Numbers: Leidos Holdings's Finances

Revenue Growth: Leidos Holdings's revenue growth over a period of 3 months has been noteworthy. As of 31 March, 2024, the company achieved a revenue growth rate of approximately 7.46%. This indicates a substantial increase in the company's top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Analyzing Profitability Metrics:

• Gross Margin: The company faces challenges with a low gross margin of 16.05%, suggesting potential difficulties 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.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The P/E ratio of 61.05 is lower than the industry average, implying a discounted valuation for Leidos Holdings's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.25 is lower than the industry average, implying a discounted valuation for Leidos Holdings's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Leidos Holdings's EV/EBITDA ratio, surpassing industry averages at 21.91, positions it with an above-average valuation in the market.

Market Capitalization Analysis: Above industry benchmarks, the company's market capitalization emphasizes a noteworthy size, indicative of a strong market presence.

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Understanding the Significance of Insider Transactions

While insider transactions provide valuable information, they should be part of a broader analysis in making investment decisions.

In the context of legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as outlined by Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are obligated to report their transactions through a Form 4 filing, which must be completed 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.

Despite insider sells not always signaling a bearish sentiment, they can be driven by various factors.

Deciphering Transaction Codes in Insider Filings

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed in Table I of the Form 4 filing. A P in Box 3 denotes 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.