Strategic Play: Robert S Shapard Acquires Leidos Holdings Stock Options to Portfolio

In a new SEC filing on May 7, it was unveiled that Shapard, Board Member at Leidos Holdings LDOS, acquired stock options for 1,179 shares.

What Happened: Shapard, Board Member 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 Shapard to buy the company's stock at $142.66 per share.

Currently, Leidos Holdings shares are trading up 0.45%, priced at $143.49 during Wednesday's morning. This values Shapard's 1,179 shares at $978.

Delving into Leidos Holdings's Background

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.

Leidos Holdings: A Financial Overview

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. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.

Exploring Profitability:

• Gross Margin: With a low gross margin of 16.05%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.

• Earnings per Share (EPS): Leidos Holdings's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 2.09.

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.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 61.05 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.25, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in 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: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

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Unmasking the Significance of Insider Transactions

Insider transactions contribute to decision-making but should be supplemented by a comprehensive investment analysis.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

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.