A large exercise of company stock options by Stephen Edward Hull, Sector President at Leidos Holdings (NYSE:LDOS) was disclosed in a new SEC filing on September 4, as part of an insider exercise.
What Happened: Hull, Sector President at Leidos Holdings, exercised stock options for 14,353 shares of LDOS stock. This information was disclosed in a Form 4 filing with the U.S. Securities and Exchange Commission on Thursday. The exercise price of the options was $103.1 per share.
Currently, Leidos Holdings shares are trading down 0.12%, priced at $178.37 during Friday's morning. This values Hull's 14,353 shares at $1,080,299.
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: A Financial Overview
Revenue Growth: Leidos Holdings's remarkable performance in 3 months is evident. As of 30 June, 2025, the company achieved an impressive revenue growth rate of 2.93%. This signifies 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.
Key Profitability Indicators:
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Gross Margin: With a low gross margin of 18.39%, the company exhibits below-average profitability, signaling potential struggles in cost efficiency compared to its industry peers.
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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 industry norms, indicating a sound financial structure with a ratio of 1.22.
Understanding Financial Valuation:
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Price to Earnings (P/E) Ratio: The current P/E ratio of 16.85 is below industry norms, indicating potential undervaluation and presenting an investment opportunity.
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Price to Sales (P/S) Ratio: The P/S ratio of 1.39 is lower than the industry average, implying a discounted valuation for Leidos Holdings's stock in relation to sales performance.
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EV/EBITDA Analysis (Enterprise Value to its Earnings Before Interest, Taxes, Depreciation & Amortization): The company's EV/EBITDA ratio 11.89 is below the industry average, indicating that it may be relatively undervalued compared to peers.
Market Capitalization: Surpassing industry standards, the company's market capitalization asserts its dominance in terms of size, suggesting a robust market position.
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Exploring the Significance of Insider Trading
While insider transactions should not be the sole basis for making investment decisions, they can play a significant role in an investor's decision-making process.
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.
The Insider's Guide to Important Transaction Codes
Taking a closer look at transactions, investors often prioritize those unfolding in the open market, meticulously cataloged in Table I of the Form 4 filing. A P in Box 3 denotes a purchase, while S signifies a sale. Transaction code C denotes the conversion of an option, and transaction code A signifies 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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