RESTON, Va.—Robert C. Kovarik Jr., a director at Leidos Holdings , Inc. (NYSE:LDOS), recently sold 1,047 shares of the company's common stock. The shares were sold at a price of $184.94 each, amounting to a total transaction value of $193,632. Following this sale, Kovarik retains ownership of 6,408 shares in the company.
Leidos Holdings, based in Reston, Virginia, operates in the computer integrated systems design sector. The transaction was disclosed in a filing with the Securities and Exchange Commission, dated October 31, 2024.
In other recent news, Leidos Holdings, Inc. continued its upward trajectory with robust financial performance in Q3 2024, marking its sixth consecutive quarter of growth. The company posted a record adjusted EBITDA margin of 14.2% and a 44% increase in adjusted diluted EPS. Moreover, Leidos reported a significant free cash flow conversion rate of 159%, nearing its $500 million share repurchase target for the year.
The company's revenue for the third quarter was $4.19 billion, a 7% increase from the previous year. Subsequently, Leidos raised its 2024 revenue guidance to between $16.35 billion and $16.45 billion and adjusted EBITDA guidance to the high 12% range. In addition, the company announced a quarterly dividend increase to $0.40 per share.
On another note, Leidos secured a contract to modernize the Organ Procurement and Transplant Network (OPTN), an initiative described as the most substantial reform of the OPTN in nearly four decades. The contract, awarded by the U.S. Department of Health and Human Services, could be worth up to $235 million.
Lastly, the company 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 is performing strongly, particularly in managed health services. These are recent developments that underline Leidos' commitment to growth and operational efficiency.
InvestingPro Insights
As Robert C. Kovarik Jr. reduces his stake in Leidos Holdings, Inc. (NYSE:LDOS), investors might be curious about the company's current financial health and market position. According to InvestingPro data, Leidos boasts a market capitalization of $24.4 billion, reflecting its significant presence in the Professional Services industry.
The company's stock has shown remarkable performance, with a 1-year price total return of 83.12% as of the latest data. This aligns with an InvestingPro Tip indicating that Leidos has experienced a high return over the last year. Additionally, the stock is trading near its 52-week high, with the current price at 97.2% of that peak.
Leidos' financial metrics paint a picture of steady growth and profitability. The company's revenue for the last twelve months stands at $16.28 billion, with a revenue growth of 7.4% over the same period. An InvestingPro Tip suggests that net income is expected to grow this year, which could be a positive sign for potential investors.
For those interested in dividend stocks, Leidos has maintained dividend payments for 13 consecutive years and has raised its dividend for 6 consecutive years, as highlighted by InvestingPro Tips. The current dividend yield is 0.87%, with a dividend growth of 11.11% in the last twelve months.
It's worth noting that InvestingPro offers 17 additional tips for Leidos Holdings, providing a more comprehensive analysis for investors looking to delve deeper into the company's prospects.
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