Look At Analyst Expectations For A Better Read On Leidos Holdings Inc. (NYSE: LDOS)


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Leidos Holdings Inc. (NYSE:LDOS). The institutional investor has increased its shareholding in the Technology company by 1.17% to 15.78 million shares with purchase of 0.18 million shares. This fresh investment now brings its stake to 11.11% valued currently at $1.48 billion. In addition, BlackRock Fund Advisors raised its holdings by 0.26 million to 6.93 million shares. And JPMorgan Investment Management, I. has lifted its position by 2.61% or 0.15 million shares – to 5.9 million shares.

    With over 0.74 million Leidos Holdings Inc. (LDOS) shares trading Wednesday and a closing price of $87.82 on the day, the dollar volume was approximately $64.77 million. The shares have shown a negative weekly performance of -0.27% and its price on 07/15/20 gained nearly 1.88%. Currently, there are 142.00M common shares owned by the public and among those 141.10M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 15 analysts who have offered their price forecasts for LDOS have a consensus price objective of $116.85. The analysts have set the share’s price value over the next 12 months at a high of $140.00 and a low of $103.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Leidos Holdings Inc. stock is 1.80 for the next 12 months. The average price target is 24.83% above its last price level and an upside to the estimated low will see the stock gain 14.74% over that period. But an upside of 37.27% will see the stock hit the forecast high price target while mean target price for the stock is $115.00.

    Insiders at the company have transacted a total of 158 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 90 of these insider trades were purchases, accounting for 332,818 shares. Insider sales of the common stock occurred on 68 occasions, with total insider shares sold totaling 179,892 shares.

    The top 3 mutual fund holders in Leidos Holdings Inc. are Vanguard Total Stock Market Index, Vanguard Small Cap Index Fund, and Vanguard 500 Index Fund. Vanguard Total Stock Market Index owns 4.07 million shares of the company’s stock, all valued at over $381.61 million. The company sold 21480.0 shares recently to bring their total holdings to about 2.87% of the shares outstanding. Vanguard Small Cap Index Fund sold 29138.0 shares to see its total holdings shrink to 3.67 million shares valued at over $343.53 million and representing 2.58% of the shares outstanding. Vanguard 500 Index Fund sold 7327.0 shares to bring its total holdings to over 2.72 million shares at a value of $254.43 million. Vanguard 500 Index Fund now owns shares totaling to 1.91% of the shares outstanding.

    Shares of Leidos Holdings Inc. (NYSE: LDOS) opened at $87.71, up $1.51 from a prior closing price of $86.20. However, the script later closed the day at $87.82, up 1.88%. The company’s stock has a 5-day price change of -0.27% and -5.27% over the past three months. LDOS shares are trading -10.29% year to date (YTD), with the 12-month market performance up to 7.05% higher. It has a 12-month low price of $68.00 and touched a high of $125.84 over the same period. Currently, 0.74 million shares have been traded, compared to an average intraday trading volume of 1.10 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -4.96%, -10.22%, and -7.89% respectively.

    Institutional ownership of Leidos Holdings Inc. (NYSE: LDOS) shares accounts for 78.40% of the company’s 142.00M shares outstanding. Mutual fund holders own 33.07%, while other institutional holders and individual stakeholders account for 44.34% and 1.52% respectively.

    It has a market capitalization of $12.26B and a beta (3y monthly) value of 1.11. The stock’s trailing 12-month PE ratio is 21.27, while the earnings-per-share (ttm) stands at $4.13. The company has a PEG of 2.06 and the debt-to-equity ratio at 1.26. Price movements for the stock have been influenced by the stock’s volatility, which stands at 2.73% over the week and 2.85% over the month.

    Analysts forecast that Leidos Holdings Inc. (LDOS) will achieve an EPS of $1.08 for the current quarter, $1.38 for the next quarter and $6.27 for 2021. The lowest estimate earnings-per-share for the quarter is $0.87 while analysts give the company a high EPS estimate of $1.27. Comparatively, EPS for the current quarter was $1.16 a year ago. Earnings per share for the fiscal year are expected to increase by 22.00%, and 19.90% over the next financial year. EPS should shrink at an annualized rate of 10.35% over the next five years, compared to 24.80% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 15 brokerage firm advisors rate Leidos Holdings Inc. (LDOS) as a “Strong Buy” at a consensus score of 1.80. Specifically, 10 Wall Street analysts polled rate the stock as a buy, while 4 of the 15 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the LDOS, a number of firms have released research notes about the stock. Credit Suisse stated their Outperform rating for the stock in a research note on May 07, 2020, with the firm’s price target at $133. Citigroup coverage for the Leidos Holdings Inc. (LDOS) stock in a research note released on April 20, 2020 offered a Buy rating with a price target of $115. William Blair was of a view on March 31, 2020 that the stock is Outperform, while Wells Fargo gave the stock Overweight rating on March 03, 2020, issuing a price target of $120. Stifel on their part issued Buy rating on March 02, 2020.


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