Insider Activity Update: Roy E Stevens Executes Options Exercise, Resulting In $316K At Leidos Holdings

Roy E Stevens, Sector President at Leidos Holdings LDOS, reported a large exercise of company stock options on November 14, according to a new SEC filing.

What Happened: In an insider options sale disclosed in a Form 4 filing on Thursday with the U.S. Securities and Exchange Commission, Stevens, Sector President at Leidos Holdings, exercised stock options for 3,000 shares of LDOS. The transaction value amounted to $316,770.

Leidos Holdings shares are trading up 0.04% at $168.02 at the time of this writing on Friday morning. Since the current price is $168.02, this makes Stevens's 3,000 shares worth $316,770.

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 Financial Performance

Revenue Growth: Leidos Holdings's remarkable performance in 3 months is evident. As of 30 September, 2024, the company achieved an impressive revenue growth rate of 6.86%. This signifies 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.

Evaluating Earnings Performance:

• Gross Margin: The company faces challenges with a low gross margin of 18.19%, 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 2.72, Leidos Holdings showcases strong earnings per share.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.11.

Valuation Metrics: A Closer Look

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 19.11, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.42, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): Leidos Holdings's EV/EBITDA ratio at 12.78 suggests potential undervaluation, falling below industry averages.

Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.

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Illuminating the Importance of Insider Transactions

Insightful as they may be, insider transactions should be considered alongside a thorough examination of other investment criteria.

When discussing 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 stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

A Closer Look at Important Transaction Codes

When dissecting transactions, the focal point for investors is often those occurring in the open market, meticulously 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 indicates 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.

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This article was generated by Benzinga's automated content engine and reviewed by an editor.