David G Fubini Expands Holdings With Leidos Holdings Stock Options

Disclosed in a recent SEC filing, David G Fubini, Director at Leidos Holdings LDOS, made a strategic move by acquiring company stock options on May 7,.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Fubini, Director at Leidos Holdings, made a strategic derivative acquisition. This involved acquiring stock options for 1,179 shares of LDOS, providing the right to buy the company's stock at an exercise price of $142.66 per share.

Leidos Holdings shares are currently trading up by 1.31%, with a current price of $144.72 as of Wednesday morning. This brings the total value of Fubini's 1,179 shares to $2,423.

Get to Know Leidos Holdings Better

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 three reportable segments; Defense Solutions, Civil, and Health. Defense Solutions provides technologically latest services, solutions, and products to a broad customer base. It generates key revenue from Defense Solutions.

Leidos Holdings: Delving into Financials

Positive Revenue Trend: Examining Leidos Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.46% as of 31 March, 2024, 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 faces challenges with a low gross margin of 16.05%, suggesting potential difficulties in cost control and profitability compared to its peers.

• 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 2.09.

Debt Management: The company maintains a balanced debt approach with a debt-to-equity ratio below industry norms, standing at 1.22.

Valuation Overview:

• Price to Earnings (P/E) Ratio: The Price to Earnings ratio of 61.05 is lower than the industry average, indicating potential undervaluation for the stock.

• Price to Sales (P/S) Ratio: With a lower-than-average P/S ratio of 1.25, 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 impressive EV/EBITDA ratio of 21.91, Leidos Holdings demonstrates exemplary market valuation, surpassing industry averages.

Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.

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The Impact of Insider Transactions on Investments

Insider transactions shouldn't be used primarily to make an investing decision, however an insider transaction can be an important factor in the investing decision.

When discussing legal matters, the term "insider" refers to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated in Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and significant hedge funds. Such insiders are required to report their transactions through a Form 4 filing, which must be completed within two business days of the transaction.

A new purchase by a company insider is a indication that they anticipate the stock will rise.

On the other hand, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Deciphering Transaction Codes in Insider Filings

When analyzing transactions, investors tend to focus on those in the open market, 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 signals 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.

This article was generated by Benzinga's automated content engine and reviewed by an editor.