Capitalizing In Growth Prospects, Gregory R Dahlberg Acquires In Leidos Holdings Stock Options

Gregory R Dahlberg, Director at Leidos Holdings LDOS, reported acquisition of company stock options on May 7, according to a new SEC filing.

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

Leidos Holdings shares are currently trading up by 1.31%, with a current price of $144.72 as of Wednesday morning. This brings the total value of Dahlberg's 1,179 shares to $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. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Profitability Metrics:

• Gross Margin: The company issues a cost efficiency warning with a low gross margin of 16.05%, indicating potential difficulties in maintaining 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: Leidos Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.22.

Valuation Metrics:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 61.05 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• 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): Leidos Holdings's EV/EBITDA ratio of 21.91 exceeds industry averages, indicating a premium valuation in the market

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

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The Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

In legal terms, an "insider" refers to any officer, director, or beneficial owner of more than ten percent of a company's equity securities registered under Section 12 of the Securities Exchange Act of 1934. This can include executives in the c-suite and large hedge funds. These insiders are required to let the public know of their transactions via a Form 4 filing, which must be filed within two business days of the transaction.

When a company insider makes a new purchase, that is an indication that they expect the stock to rise.

Insider sells, on the other hand, can be made for a variety of reasons, and may not necessarily mean that the seller thinks the stock will go down.

The Insider's Guide to Important Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.