In A Strategic Move, Nancy A Norton Acquires Leidos Holdings Stock Options Worth $211: Enhancing Value

A noteworthy insider acquisition was disclosed on May 13, as Norton, Director at Leidos Holdings LDOS, reported the acquisition of stock options for 1,030 shares.

What Happened: Uncovered in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Norton, Director at Leidos Holdings, executed an insider options move. This move consisted of acquiring stock options for 1,030 shares of LDOS, granting Norton the right to purchase the company's stock at an exercise price of $154.71 per share.

Leidos Holdings shares are currently trading down by 0.33%, with a current price of $154.91 as of Wednesday morning. This brings the total value of Norton's 1,030 shares to $211.

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 four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.

Breaking Down Leidos Holdings's Financial Performance

Positive Revenue Trend: Examining Leidos Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 6.79% as of 31 March, 2025, showcasing a substantial increase in 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 shows a low gross margin of 17.83%, suggesting potential challenges 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 2.79, Leidos Holdings showcases strong earnings per share.

Debt Management: Leidos Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.35.

Financial Valuation:

• Price to Earnings (P/E) Ratio: With a lower-than-average P/E ratio of 15.67, the stock indicates an attractive valuation, potentially presenting a buying opportunity.

• Price to Sales (P/S) Ratio: The current P/S ratio of 1.23 is below industry norms, suggesting potential undervaluation and presenting an investment opportunity for those considering sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With a below-average EV/EBITDA ratio of 11.16, Leidos Holdings presents an opportunity for value investors. This lower valuation may attract investors seeking undervalued opportunities.

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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Understanding the Significance of Insider Transactions

Insider transactions, although significant, should be considered within the larger context of market analysis and trends.

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.

Cracking Transaction Codes

Examining transactions, investors often concentrate on those unfolding 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.