US military drone contractor Leidos sees stock fluctuations amid mysterious sightings in New Jersey
Leidos Holdings, Inc. (NYSE: LDOS), a key player in the defense technology sector, has experienced stock price fluctuations since November 18, when mysterious drone sightings started occurring in New Jersey.
The drone sightings have sparked significant interest — from apparently not all, but some Congress members, reportedly and surprisingly including those at the highest levels of intelligence committees; many local and state government and law enforcement officials in particularly the eight states where the sightings have been reported, including New Jersey, New York, Pennsylvania, Ohio, Connecticut, Virginia, Massachusetts and California; and seemingly most of the public — in drone and counter-drone technology, especially one that involves large-sized drones and/or any that is yet publicly undisclosed — or even publicly made lesser-known — by top federal government/intelligence/military officials. When a reporter asked President-elect Donald Trump during the soon-to-be president’s first post-election news conference at his private club, Mar-a-Lago, in Palm Beach, Florida, on Monday if he had received an intelligence briefing on the drones, he replied, “I don’t want to comment on that.” Moments earlier, he had said the US government, military and President Biden knew what those drones were and added that “for some reason they want to keep people in suspense.”
Stock Performance: Over almost the last 30 days, Leidos’ stock price has seen both peaks and troughs. On November 18, 2024, the stock closed at $158.84. The following day saw a slight decline, but it rebounded over the next days, reaching an intraday high of $167.72 on November 21, 2024, and closing at $164.69. On November 22, the stock continued its upward trend, closing at $165.51. The market was closed over the weekend (November 23-24).
Week of November 25-29: The stock continued to experience minor fluctuations, reflecting general market conditions and investor sentiment. It saw a closing high of $166.11 on November 26 and a low of $163.60 on November 25, before closing the week at $165.40 on November 29.
Week of December 2-6: After reopening on Monday, December 2, following the weekend, the stock experienced notable fluctuations. It opened the week with an intraday high of $166.42 on December 2 and closed at $164.13. The next day, it continued to peak at an intraday high of $166.46 on December 3 and closed again at $164.13. The stock reached an intraday high of $165.75 on December 4 and closed at $165.06. On December 5, it reached an intraday high of $165.57 before closing at $163.76. The week ended with the stock closing at $163.15 on December 6.
Week of December 9-13: The stock demonstrated varying levels of performance throughout the week. On December 9, it hit an intraday high of $163.01 and concluded the day at $160.31. The following day, December 10, saw an intraday peak of $161.82, closing at $160.16. On December 11, the stock reached a high of $160.72 and finished at $153.55. December 12 witnessed an intraday high of $154.20 with a closing price of $152.98. Finally, on December 13, the stock ended the week at $153.16.
December 16-17: The stock began the week with moderate activity. On December 16, it reached an intraday high of $154.08 and closed at $152.50. Today, on December 17, the stock opened at $151.56 and trading at $149.78 at the time of this writing.
Just earlier today, Leidos announced that it has secured a $107 million contract with the National Geospatial-Intelligence Agency (NGA) to provide geospatial intelligence products.
Leidos National Security Sector president Roy Stevens said in a press release, “NGA’s analysts require timely and accurate foundational data to facilitate effective analysis in support of current mission requirements. Our geographic and topographic data products help enable analysts to support warfighters and national security objectives with precision.”
Last week, the company announced it successfully completed a commercial launch vehicle test for the Multi-Service Advanced Capability Hypersonic Test Bed (MACH-TB) program in November, with the contract having been awarded by Naval Surface Warfare Center Crane through the Strategic and Spectrum Missions Advanced Resilient Trusted Systems Other Transaction Authority vehicle on behalf of the U.S. Department of Defense Test Resource Management Center.
U.S. Department of Defense Test Resource Management Center Director George Rumford stated, “Leveraging commercial launch services allows our nation to affordably test components early and frequently, accelerating hypersonic development.”
The week before the last one, it was announced that Defense Information Systems Agency (DISA) had awarded Leidos three new awards to start the IT transformation’s next phase and migrate an expanded user base to the Department of Defense Network (DoDNet), under the Defense Enclave Services (DES) program. DISA is working with Leidos through the single-award, $11.5 billion, 10-year indefinite delivery, indefinite quantity DES contract to optimize network services for Fourth Estate Defense Agencies and Field Activities as they migrate from their legacy systems to the modernized, consolidated DoDNet.
In late October, Leidos reported several significant developments, including being awarded a $93 million contract to support Navy and Marine Corps weapons systems, securing a $331 million contract to modernize the Army’s Global Unified Network, and reporting strong Q3 2024 results. The company raised its full-year guidance with revenues of $4.2 billion, up 7% year-over-year, net income of $362 million or $2.68 per diluted share, adjusted EBITDA (non-GAAP) of $596 million (14.2% margin), non-GAAP diluted earnings per share of $2.93, up 44% year-over-year, cash flows from operations of $656 million, free cash flow (non-GAAP) of $633 million, and net bookings of $8.1 billion, with a book-to-bill ratio of 1.9 for the quarter and 1.1 for the trailing twelve months. Around mid Oct, it was announced that U.S. Navy awarded Leidos $248 million contract to provide autonomous systems design and engineering, with the company continuing to perform a range of support services that include research and analysis for the collection and processing of intelligence, surveillance and reconnaissance capabilities to develop multi-sensor, unmanned underwater vehicles and other unattended and unmanned systems platforms.
Also around mid Oct., Leidos announced AirShield™, the new name for its latest solution for counter-unmanned aerial system (C-UAS) or counter drone missions. “AirShield is a multi-layered system that can operate autonomously in a single location or on the move to provide protection from UAS threats,” reads a company press release. “It’s designed to excel in detection, tracking, classification, identification, prioritization, assessment, and neutralization of threats, providing a kill-chain solution that can seamlessly integrate into existing air defenses.”
A month earlier, Leidos and the Program Executive Office (PEO) for Missiles and Space (MS), the Short and Intermediate Effectors for Layered Defense Project Office and the PEO MS Integrated Fires team successfully conducted intercepts of Unmanned Aircraft System (UAS), also known as drones, and Cruise Missile (CM) test targets with the Indirect Fire Protection Capability Increment 2 (IFPC Inc 2) system. It showed the system’s ability to detect, track, engage and intercept drones and CM targets in a missile flight test with a surface launched AIM-9X. The demonstration also involved integrating the Integrated Battle Command System (IBCS), Sentinel A3 and Missile Datalink, demonstrating the capability to neutralize drone and CM targets through a live fire. “IFPC Inc 2 is a ground-based, mobile system that aims to combat CMs and UASs,” reads a press release. “The system is a key part of the solution to protect and defend critical civilian and military infrastructure. It also is designed to bridge the gap between tactical short range air defense and strategic systems, Terminal High Altitude Area Defense (THAAD) and Patriot forces.”
These contracts, and others, highlight Leidos’ ongoing involvement in critical defense projects, which may further influence investor confidence moving forward.
Featured photo is of AirShield™, the new name for Leidos’ latest solution for counter-unmanned aerial system (C-UAS) or counter-drone missions. Image via press release.
