At Leidos Holdings, Roy E Stevens Chooses To Exercise Options, Resulting In $916K

In a new SEC filing on August 27, it was revealed that Stevens, Sector President at Leidos Holdings (NYSE:LDOS), executed a significant exercise of company stock options.

What Happened: The latest Form 4 filing on Wednesday with the U.S. Securities and Exchange Commission uncovered Stevens, Sector President at Leidos Holdings, exercising stock options for 7,536 shares of LDOS. The total transaction was valued at $916,151.

Leidos Holdings shares are trading up 0.33% at $184.0 at the time of this writing on Thursday morning. Since the current price is $184.0, this makes Stevens's 7,536 shares worth $916,151.

About Leidos Holdings

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 2.93% as of 30 June, 2025. This reflects a substantial increase in the company's 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.

Exploring Profitability:

• Gross Margin: The company faces challenges with a low gross margin of 18.39%, suggesting potential difficulties in cost control and profitability compared to its peers.

• Earnings per Share (EPS): Leidos Holdings's EPS is notably higher than the industry average. The company achieved a positive bottom-line trend with a current EPS of 3.03.

Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.

Evaluating Valuation:

• Price to Earnings (P/E) Ratio: The P/E ratio of 17.3 is lower than the industry average, implying a discounted valuation for Leidos Holdings's stock.

• Price to Sales (P/S) Ratio: The P/S ratio of 1.42 is lower than the industry average, implying a discounted valuation for Leidos Holdings's stock in relation to sales performance.

• EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): At 12.15, Leidos Holdings's EV/EBITDA ratio reflects a below-par valuation compared to industry averages signalling undervaluation

Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.

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Why Insider Transactions Are Important

Insider transactions shouldn't be used primarily to make an investing decision, however, they can be an important factor for an investor to consider.

Exploring the legal landscape, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities, as stipulated by Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and major hedge funds. These insiders are required to report their transactions through a Form 4 filing, which must be submitted within two business days of the transaction.

Highlighted by a company insider's new purchase, there's a positive anticipation for the stock to rise.

But, insider sells may not necessarily indicate a bearish view and can be motivated by various factors.

Essential Transaction Codes Unveiled

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.