ARLINGTON, Va.—Lynn William III, the Chief Executive Officer of Leonardo DRS, Inc. (NASDAQ:DRS), recently sold shares worth approximately $1.53 million. The sale, which took place on December 2, involved 45,000 shares at an average price of $34.07, according to a filing with the Securities and Exchange Commission. The stock, which InvestingPro analysis indicates is currently overvalued, has delivered impressive returns with a 72% gain year-to-date and 82% over the past year.
In addition to the sale, Mr. William acquired a significant number of shares through the exercise of performance restricted stock units and restricted stock units on November 29. These transactions were conducted at no cost, adding 214,286 and 142,858 shares to his holdings, respectively.
However, a portion of these newly acquired shares was withheld by the company to cover tax obligations, resulting in a total withholding value of approximately $6.22 million at a price of $34.77 per share. Following these transactions, Mr. William holds 234,937 shares directly.
The sale was executed under a pre-arranged trading plan adopted on August 27, 2024, allowing for the orderly sale of shares over time.
In other recent news, Leonardo DRS has demonstrated robust financial growth, reporting a 16% year-over-year increase in revenue in the third quarter of fiscal year 2024, with bookings reaching $1.1 billion. The company also reported significant rises in adjusted EBITDA and adjusted diluted EPS by 22% and 20% respectively. Truist Securities, following this performance, maintained a Buy rating on Leonardo DRS and increased its price target from $32 to $36.
The defense contractor reported a 12% revenue increase for 2024 and anticipates a midpoint revenue growth of 6.5% for 2025. Analysts from Truist Securities believe this momentum could result in a 2026 revenue base nearing $3.7 billion, surpassing the current market consensus of $3.58 billion.
Leonardo DRS's growth is partly due to the progress of the Columbia class submarine program, contributing to margin growth in its Integrated Mission Systems (IMS) segment, and the rising demand for tactical radars and force protection systems. The company's acquisition of RADA and significant contract wins, including a $235 million award for naval radars, were also highlighted as key developments.
The company updated its full-year revenue guidance for 2024, projecting an 11% to 13% growth with an estimated revenue between $3.15 billion and $3.20 billion. Preliminary expectations for 2025 suggest a 5% to 8% revenue growth. These are the recent developments that have been reported for Leonardo DRS.
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