Leidos Holdings , Inc. (NYSE:LDOS) stock has reached an unprecedented peak, marking an all-time high at $188.39. This milestone reflects a significant surge in the company's stock value, underlining a robust performance over the past year. Investors have witnessed an impressive 82.05% increase in the stock's value from the previous year, signaling strong confidence in Leidos' market position and future prospects. The company's ascent to this record-setting price level underscores its successful strategies and the positive reception of its services in the technology and defense sectors.
In other recent news, Leidos has secured a significant contract from the U.S. Department of Health and Human Services to modernize the Organ Procurement and Transplant Network (OPTN). This contract could be worth up to $235 million and is considered the most substantial reform of the OPTN in nearly four decades.
In financial developments, Leidos reported strong Q3 2024 results, marking its sixth consecutive quarter of growth. The company posted an adjusted EBITDA margin of 14.2%, a 44% increase in adjusted diluted EPS, and a significant free cash flow conversion rate of 159%. Leidos' Q3 revenue was $4.19 billion, reflecting a 7% increase from the previous year.
The company also raised its 2024 revenue guidance to between $16.35 billion and $16.45 billion and adjusted EBITDA guidance to the high 12% range. Among other recent updates, Leidos announced a quarterly dividend increase to $0.40 per share and secured $8.1 billion in net bookings, resulting in a total backlog of $40.6 billion.
InvestingPro Insights
Leidos Holdings' recent stock performance aligns with several key metrics and insights from InvestingPro. The company's market capitalization stands at an impressive $25.1 billion, reflecting its significant presence in the Professional Services industry. Leidos has demonstrated strong financial performance, with a revenue of $16.28 billion in the last twelve months as of Q3 2023, representing a 7.4% growth.
InvestingPro Tips highlight Leidos' consistent dividend history, having maintained payments for 13 consecutive years and raised dividends for 6 years straight. This commitment to shareholder returns is further supported by a current dividend yield of 0.86%. The company's financial health is also evident in its profitability, with InvestingPro data showing a robust operating income margin of 10.83%.
The stock's recent performance is particularly noteworthy, with InvestingPro data revealing a staggering 81.34% total return over the past year, corroborating the 82.05% increase mentioned in the article. This exceptional growth is part of a broader trend, as evidenced by the 73.53% year-to-date return and a strong 30.93% return over the last three months.
Investors considering Leidos should note that the stock is trading near its 52-week high, with its current price at 99.43% of that peak. While this indicates strong momentum, it's worth noting that an InvestingPro Tip suggests the stock may be in overbought territory based on its RSI.
For those seeking a deeper analysis, InvestingPro offers 16 additional tips on Leidos Holdings, providing a comprehensive view of the company's financial health and market position.
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