A notable acquisition unfolded on May 7, as Geer, Board Member at Leidos Holdings (NYSE:LDOS), reported the acquisition of stock options for 1,179 shares in an SEC filing.
What Happened: Revealed in a Form 4 filing on Tuesday with the U.S. Securities and Exchange Commission, Geer, Board Member at Leidos Holdings, strategically acquired stock options for 1,179 shares of LDOS. These options empower Geer to buy the company's stock at a favorable exercise price of $142.66 per share.
Leidos Holdings shares are trading up 1.31% at $144.72 at the time of this writing on Wednesday morning. Since the current price is $144.72, this makes Geer's 1,179 shares worth $2,423.
Discovering Leidos Holdings: A Closer Look
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 Insights: Leidos Holdings
Revenue Growth: Over the 3 months period, Leidos Holdings showcased positive performance, achieving a revenue growth rate of 7.46% as of 31 March, 2024. This reflects a substantial increase in the company's 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.
Profitability Metrics:
Debt Management: Leidos Holdings's debt-to-equity ratio is below the industry average at 1.22, reflecting a lower dependency on debt financing and a more conservative financial approach.
Valuation Overview:
Market Capitalization Analysis: The company's market capitalization surpasses industry averages, showcasing a dominant size relative to peers and suggesting a strong market position.
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Navigating the Impact of Insider Transactions on Investments
Insider transactions are not the sole determinant of investment choices, but they are a factor worth considering.
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.
Important Transaction Codes
Navigating through the landscape of transactions, investors often prioritize those unfolding in the open market, precisely detailed 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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