On May 7, JR, Board Member at Leidos Holdings (NYSE:LDOS), executed a strategic insider move by acquiring stock options for 1,179 shares.
What Happened: In a Form 4 filing with the U.S. Securities and Exchange Commission on Tuesday, JR, Board Member at Leidos Holdings, acquired stock options for 1,179 shares of LDOS. These options provide JR with the right to purchase the company's stock at $142.66 per share.
Leidos Holdings shares are currently trading up by 1.31%, with a current price of $144.72 as of Wednesday morning. This brings the total value of JR's 1,179 shares to $2,423.
Delving into Leidos Holdings's Background
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.
Leidos Holdings: A Financial Overview
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. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.
Exploring Profitability:
Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average. With a ratio of 1.22, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.
Assessing Valuation Metrics:
Market Capitalization Analysis: With a profound presence, the company's market capitalization is above industry averages. This reflects substantial size and strong market recognition.
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Unmasking the Significance of Insider Transactions
Considering insider transactions is valuable, but it's crucial to evaluate them in conjunction with other investment factors.
From a legal standpoint, the term "insider" pertains to any officer, director, or beneficial owner holding more than ten percent of a company's equity securities as outlined in Section 12 of the Securities Exchange Act of 1934. This encompasses executives in the c-suite and significant hedge funds. These insiders are mandated to inform the public of their transactions through a Form 4 filing, to be submitted within two business days of the transaction.
A company insider's new purchase is a indicator of their positive anticipation for a rise in the stock.
While insider sells may not necessarily reflect a bearish view and can be motivated by various factors.
Cracking Transaction Codes
Digging into the details of stock transactions, investors frequently turn their attention to those taking place in the open market, as outlined in Table I of the Form 4 filing. A P in Box 3 indicates 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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