Board Member At Leidos Holdings Exercises Options Worth $101K

On November 14, it was revealed in an SEC filing that Gregory R Dahlberg, Board Member at Leidos Holdings LDOS executed a significant exercise of company stock options.

What Happened: The latest Form 4 filing on Thursday with the U.S. Securities and Exchange Commission uncovered Dahlberg, Board Member at Leidos Holdings, exercising stock options for 1,000 shares of LDOS. The total transaction was valued at $101,994.

Leidos Holdings shares are trading, exhibiting down of 1.72% and priced at $165.07 during Friday's morning. This values Dahlberg's 1,000 shares at $101,994.

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.

Key Indicators: Leidos Holdings's Financial Health

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.

Analyzing Profitability Metrics:

• Gross Margin: The company shows a low gross margin of 18.19%, suggesting potential challenges in cost control and profitability compared to its 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 2.72.

Debt Management: With a below-average debt-to-equity ratio of 1.11, Leidos Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

Navigating Market Valuation:

• 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 P/S ratio of 1.42 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): Indicated by a lower-than-industry-average EV/EBITDA ratio of 12.78, the company suggests a potential undervaluation, which might be advantageous for value-focused investors.

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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Navigating the Impact of Insider Transactions on Investments

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

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

The initiation of a new purchase by a company insider serves as a strong indication that they expect the stock to rise.

However, insider sells may not always signal a bearish view and can be influenced by various factors.

A Deep Dive into Insider Transaction Codes

Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely 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 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.

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