In a recent SEC filing, it was disclosed that JANSEN HARRY KRAEMER JR, Director at Leidos Holdings (NYSE:LDOS), made a noteworthy acquisition of company stock options on May 7,.
What Happened: A Form 4 filing from the U.S. Securities and Exchange Commission on Tuesday showed that JR, Director at Leidos Holdings, a company in the Industrials sector, acquired stock options for 1,179 shares of LDOS. The options allow JR to buy the company's stock at $142.66 per share.
During Wednesday's morning session, Leidos Holdings shares up by 1.31%, currently priced at $144.72. Considering the current price, JR's 1,179 shares have a total value of $2,423.
All You Need to Know 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 three reportable segments; Defense Solutions, Civil, and Health. Defense Solutions provides technologically latest services, solutions, and products to a broad customer base. It generates key revenue from Defense Solutions.
Financial Milestones: Leidos Holdings's Journey
Positive Revenue Trend: Examining Leidos Holdings's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.46% as of 31 March, 2024, showcasing a substantial increase in top-line earnings. When compared to others in the Industrials sector, the company faces challenges, achieving a growth rate lower than the average among peers.
Key Profitability Indicators:
Debt Management: Leidos Holdings's debt-to-equity ratio is below industry norms, indicating a sound financial structure with a ratio of 1.22.
Analyzing Market Valuation:
Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.
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The Importance of Insider Transactions
Insider transactions, although significant, should be considered within the larger context of market analysis and trends.
In the realm of legality, an "insider" is defined as any officer, director, or beneficial owner holding more than ten percent of a company's equity securities under Section 12 of the Securities Exchange Act of 1934. This includes executives in the c-suite and major hedge funds. These insiders are required to disclose their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
Notably, when a company insider makes a new purchase, it is considered an indicator of their positive expectations for the stock.
Conversely, insider sells may not necessarily signal a bearish stance on the stock 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.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
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