Strategic Move: Patrick M Shanahan Enhances Portfolio With Leidos Holdings Stock Options

In a recent SEC filing, it was disclosed that Patrick M Shanahan, Board Member at Leidos Holdings LDOS, made a noteworthy acquisition of company stock options on May 7,.

What Happened: Revealed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Shanahan, Board Member at Leidos Holdings, strategically acquired stock options for 1,179 shares of LDOS. These options empower Shanahan to buy the company's stock at a favorable exercise price of $142.66 per share.

The latest update on Wednesday morning shows Leidos Holdings shares up by 1.31%, trading at $144.72. At this price, Shanahan's 1,179 shares are worth $2,423.

About 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.

Unraveling the Financial Story of Leidos Holdings

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.

Insights into Profitability:

• 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): Leidos Holdings's EPS is significantly higher than the industry average. The company demonstrates a robust bottom-line performance with a current EPS of 2.09.

Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average. With a ratio of 1.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Market Valuation:

• 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: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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Navigating the Impact of Insider Transactions on Investments

Emphasizing the importance of a comprehensive approach, considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.

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.

A Closer Look at Important Transaction Codes

Surveying the realm of stock transactions, investors often give prominence to those unfolding in the open market, systematically detailed in Table I of the Form 4 filing. A P in Box 3 indicates a purchase, while S signifies a sale. Transaction code C denotes 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.