Pamela Morrow, the Senior Vice President and Controller of Leonardo DRS, Inc. (NASDAQ:DRS), recently sold 11,100 shares of the company's common stock. The shares were sold at an average price of $34.81, amounting to a total transaction value of $386,391. This sale was executed under a Rule 10b5-1 trading plan that Morrow adopted in August 2024. The transaction comes as the $9.2 billion market cap company has seen its stock surge nearly 72% year-to-date, according to InvestingPro data.
In addition to the sale, Morrow also engaged in transactions related to the vesting of performance restricted stock units (PRSUs) and restricted stock units (RSUs). On November 29, 2024, Morrow acquired 17,143 shares and 11,429 shares of common stock through the vesting of PRSUs and RSUs, respectively. These acquisitions were part of the company's 2022 Omnibus Equity Compensation Plan and were not associated with any cash outlay as the shares were granted under the plan. With a "GOOD" financial health score and analyst targets ranging from $32 to $42, detailed analysis is available in the comprehensive InvestingPro Research Report.
Furthermore, Morrow had shares withheld by the company to satisfy tax withholding requirements, totaling $399,750, at a price of $34.77 per share. Following these transactions, Morrow holds 12,565 shares of Leonardo DRS common stock directly. Trading at a P/E ratio of 46.3x, InvestingPro analysis suggests the stock is currently trading above its Fair Value.
In other recent news, defense contractor Leonardo DRS has been the focus of positive attention from analyst firm Truist Securities. The firm has maintained a Buy rating for Leonardo DRS and increased its price target from $32 to $36, following a robust third-quarter performance that exceeded expectations and prompted a raise in the company's guidance.
Leonardo DRS reported a 12% revenue increase in 2024 and anticipates a midpoint revenue growth of 6.5% for 2025, surpassing the management’s projected three-year compound annual growth rate (CAGR) of 4-7%. Analysts suggest this momentum could lead to a 2026 revenue base nearing $3.7 billion, outpacing the current market consensus of $3.58 billion.
The company's recent success is partially attributed to the progress of the Columbia class submarine program, contributing to margin growth in its Integrated Mission Systems (IMS) segment. The demand for tactical radars and force protection systems is also driving organic growth for Leonardo DRS.
In addition, the company reported a 16% year-over-year increase in third-quarter revenue, with bookings reaching $1.1 billion. Adjusted EBITDA and adjusted diluted EPS also rose significantly, by 22% and 20% respectively.
Lastly, Leonardo DRS updated its full-year revenue guidance for 2024 and provided preliminary expectations for 2025, indicating continued growth. These are the recent developments that highlight Leonardo DRS's robust performance and strategic planning.
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