In a recent filing with the Securities and Exchange Commission, Noel B. Geer, a director at Leidos Holdings , Inc. (NYSE:LDOS), disclosed the purchase of 2,000 shares of the company's common stock. The transaction, dated November 20, 2024, was valued at approximately $322,260, with shares bought at an average price of $161.13 each.
Additionally, on November 21, 2024, Geer exercised stock options resulting in the acquisition of 4,070 shares at an exercise price of $63.08 per share. This transaction was valued at $256,735. Following these transactions, Geer holds a total of 34,906.8435 shares directly, with an additional 29,894 shares held indirectly by a family trust.
In other recent news, Leidos, a Fortune 500® innovation company, has secured a significant contract from the U.S. Department of Health and Human Services to modernize the Organ Procurement and Transplant Network (OPTN). This initiative, potentially valued at $235 million, is set to impact over 100,000 individuals on the national organ transplant waitlist, marking significant reforms of the OPTN in nearly 40 years. Leidos has also been the subject of an upgrade by JPMorgan (NYSE:JPM), which revised its price target for the company to $205, up from $185, citing strong performance trends in the Federal IT sector.
Leidos reported robust financial performance for the third quarter of 2024, marking its sixth consecutive quarter of growth. The company posted a record adjusted EBITDA margin of 14.2%, a 44% increase in adjusted diluted EPS, and a 7% revenue increase from the previous year, reaching $4.19 billion. As a result, Leidos raised its 2024 revenue guidance to between $16.35 billion and $16.45 billion.
In addition, the company announced a quarterly dividend increase to $0.40 per share and secured $8.1 billion in net bookings, resulting in a total backlog of $40.6 billion. Despite challenges in the National Security and Digital segment, the Health & Civil segment continues to perform strongly, particularly in managed health services. These recent developments highlight Leidos' sustained high performance and potential for continued growth.
InvestingPro Insights
The recent insider buying activity at Leidos Holdings, Inc. (NYSE:LDOS) aligns with several positive indicators highlighted by InvestingPro. According to InvestingPro Tips, Leidos has raised its dividend for 6 consecutive years and has maintained dividend payments for 13 consecutive years, demonstrating a commitment to shareholder returns. This consistent dividend growth could be a factor in Director Noel B. Geer's decision to increase his stake in the company.
InvestingPro Data shows that Leidos has a market capitalization of $22.03 billion and a P/E ratio of 18.7, suggesting a reasonable valuation for a company in the Professional Services industry. The company's revenue growth of 7.4% over the last twelve months and an impressive EBITDA growth of 30.85% indicate strong operational performance, which may have influenced the insider's confidence in the stock.
Furthermore, InvestingPro Tips reveal that 9 analysts have revised their earnings upwards for the upcoming period, and the company is expected to be profitable this year. These positive forecasts, combined with Leidos' high return over the last year and decade, as noted in the InvestingPro Tips, provide context for why an insider might choose to increase their position.
For investors seeking a deeper understanding of Leidos' potential, InvestingPro offers 11 additional tips, which could provide further insights into the company's financial health and growth prospects.
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