Smart Decision: Noel B Geer Acquires Leidos Holdings Stock Options Worth $203

A substantial acquisition of company stock options by Noel B Geer, Director at Leidos Holdings LDOS was reported on May 13, based on a new SEC filing.

What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that Geer, Director at Leidos Holdings, a company in the Industrials sector, acquired stock options for 1,030 shares of LDOS. The options allow Geer to buy the company's stock at $154.71 per share.

Currently, Leidos Holdings shares are trading down 0.34%, priced at $154.91 during Wednesday's morning. This values Geer's 1,030 shares at $203.

Unveiling the Story Behind 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 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.

Key Indicators: Leidos Holdings's Financial Health

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

Insights into Profitability:

• Gross Margin: The company shows a low gross margin of 17.83%, indicating concerns regarding cost management and overall profitability relative to its industry counterparts.

• 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 2.79.

Debt Management: With a below-average debt-to-equity ratio of 1.35, Leidos Holdings adopts a prudent financial strategy, indicating a balanced approach to debt management.

Valuation Analysis:

• Price to Earnings (P/E) Ratio: Leidos Holdings's P/E ratio of 15.67 is below the industry average, suggesting the stock may be undervalued.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.23, the stock presents an attractive valuation, potentially signaling a buying opportunity for investors interested in sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.16, Leidos Holdings presents an attractive value opportunity.

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

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The Impact of Insider Transactions on Investments

While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.

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

Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.

Conversely, insider sells may not necessarily signal a bearish stance on the stock and can be motivated by various factors.

Understanding Crucial 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.