Leidos (LDOS) Raised to Hold at Zacks Investment Research

Leidos (NYSE:LDOS) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a research note issued on Monday.

According to Zacks, “Increased contract wins for its cost-effective defense solutions from the Pentagon as well as other U.S. allies have been serving as a primary growth driver for Leidos Holdings. In fact, these contract wins tend to bolster the company’s backlog. Moreover, with the current U.S. administration being in favor of increased defense spending, macroeconomic environment in the nation has been boosting the company’s growth prospects. However, Leidos Holdings is susceptible to interest rate risk related to the issuance of debt. A material rise in long-term interest rates is a major risk for capital intensive stocks like Leidos Holdings. With the current U.S. economy being in favor of an increasing interest rate, the credit market might not hugely favor Leidos Holdings. Shares of Leidos Holdings have thus underperformed its industry in the past 12 months.”

A number of other research analysts also recently weighed in on the stock. Cowen reaffirmed a “buy” rating and issued a $77.00 target price on shares of Leidos in a research report on Wednesday, October 17th. ValuEngine downgraded shares of Leidos from a “hold” rating to a “sell” rating in a research report on Wednesday, January 9th. Finally, Argus decreased their target price on shares of Leidos from $80.00 to $70.00 and set a “buy” rating for the company in a research report on Monday, October 29th. Three equities research analysts have rated the stock with a hold rating and five have given a buy rating to the stock. Leidos currently has an average rating of “Buy” and an average target price of $77.29.



Leidos stock traded down $0.05 during mid-day trading on Monday, reaching $62.03. The company’s stock had a trading volume of 11,030 shares, compared to its average volume of 741,544. The company has a market cap of $9.34 billion, a P/E ratio of 16.68, a price-to-earnings-growth ratio of 1.39 and a beta of 1.64. Leidos has a 12 month low of $50.33 and a 12 month high of $72.30. The company has a current ratio of 1.38, a quick ratio of 1.16 and a debt-to-equity ratio of 0.86.

Several institutional investors and hedge funds have recently made changes to their positions in LDOS. FMR LLC raised its stake in Leidos by 30.3% in the 2nd quarter. FMR LLC now owns 13,424,963 shares of the aerospace company’s stock worth $792,073,000 after purchasing an additional 3,122,237 shares in the last quarter. Oregon Public Employees Retirement Fund increased its position in Leidos by 5,498.8% during the 4th quarter. Oregon Public Employees Retirement Fund now owns 3,142,692 shares of the aerospace company’s stock worth $60,000 after purchasing an additional 3,086,560 shares in the last quarter. Victory Capital Management Inc. increased its position in Leidos by 4,122.6% during the 3rd quarter. Victory Capital Management Inc. now owns 2,161,817 shares of the aerospace company’s stock worth $149,511,000 after purchasing an additional 2,110,621 shares in the last quarter. BlackRock Inc. increased its position in Leidos by 5.0% during the 3rd quarter. BlackRock Inc. now owns 13,530,994 shares of the aerospace company’s stock worth $935,803,000 after purchasing an additional 642,239 shares in the last quarter. Finally, Massachusetts Financial Services Co. MA increased its position in Leidos by 56.1% during the 3rd quarter. Massachusetts Financial Services Co. MA now owns 1,728,874 shares of the aerospace company’s stock worth $119,568,000 after purchasing an additional 621,080 shares in the last quarter. 74.79% of the stock is owned by institutional investors.

About Leidos

Leidos Holdings, Inc provides services and solutions in the defense, intelligence, civil, and health markets primarily in the United States. The company operates through three segments: Defense Solutions, Civil, and Health. The Defense Solutions segment offers national security solutions and systems for air, land, sea, space, and cyberspace for the U.S.

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