In A Strategic Move, Gary Stephen May Acquires Leidos Holdings Stock Options Worth $203: Enhancing Value

A notable acquisition unfolded on May 13, as May, Board Member at Leidos Holdings LDOS, reported the acquisition of stock options for 1,030 shares in an SEC filing.

What Happened: Disclosed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, May, Board Member at Leidos Holdings, made a strategic derivative acquisition. This involved acquiring stock options for 1,030 shares of LDOS, providing the right to buy the company's stock at an exercise price of $154.71 per share.

The Wednesday morning market activity shows Leidos Holdings shares down by 0.34%, trading at $154.91. This implies a total value of $203 for May's 1,030 shares.

Delving into Leidos Holdings's Background

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 four reportable segments; National Security & Digital, Health & Civil, Commercial & International and Defense Systems. It provides a wide array of scientific, engineering and technical services and solutions across these reportable segments.

Leidos Holdings's Financial Performance

Revenue Growth: Over the 3 months period, Leidos Holdings showcased positive performance, achieving a revenue growth rate of 6.79% as of 31 March, 2025. This reflects a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Exploring Profitability:

• Gross Margin: The company shows a low gross margin of 17.83%, suggesting potential challenges 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 2.79.

Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average. With a ratio of 1.35, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Navigating Market Valuation:

• Price to Earnings (P/E) Ratio: The current P/E ratio of 15.67 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.

• Price to Sales (P/S) Ratio: The Price to Sales ratio is 1.23, which is lower than the industry average. This suggests a possible undervaluation based on sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): With an EV/EBITDA ratio lower than industry benchmarks at 11.16, Leidos Holdings presents an attractive value opportunity.

Market Capitalization Analysis: With an elevated market capitalization, the company stands out above industry averages, showcasing substantial size and market acknowledgment.

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Why Insider Transactions Are Important

It's important to note that insider transactions alone should not dictate investment decisions, but they can provide valuable insights.

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.

Breaking Down the Significance of Transaction Codes

For investors, a primary focus lies on transactions occurring in the open market, as indicated 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.

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