Strategic Play: Nancy A Norton Acquires Leidos Holdings Stock Options to Portfolio

In a new SEC filing on May 7, it was unveiled that Norton, Board Member at Leidos Holdings LDOS, acquired stock options for 1,557 shares.

What Happened: Revealed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Norton, Board Member at Leidos Holdings, strategically acquired stock options for 1,557 shares of LDOS. These options empower Norton to buy the company's stock at a favorable exercise price of $142.66 per share.

As of Wednesday morning, Leidos Holdings shares are up by 1.31%, with a current price of $144.72. This implies that Norton's 1,557 shares have a value of $3,200.

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's Economic Impact: An Analysis

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 competitors, the company encountered difficulties, with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 16.05%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• Earnings per Share (EPS): Leidos Holdings's EPS is a standout, portraying a positive bottom-line trend that exceeds the industry average with a current EPS of 2.09.

Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

Exploring Valuation Metrics Landscape:

• 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: 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 stands at 21.91, surpassing industry benchmarks. This places the company in a position with a higher-than-average market valuation.

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Now trade stocks online commission free with Charles Schwab, a trusted and complete investment firm.

The Relevance of Insider Transactions

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

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

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

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

Navigating the World of Insider Transaction Codes

In the domain of transactions, investors frequently turn their focus to those taking place in the open market, as meticulously 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.