On May 22, 2023, Thomas Bell, CEO of Leidos Holdings Inc (LDOS, Financial), purchased 6,300 shares of the company's stock. This move comes as part of a broader trend of insider buying at Leidos Holdings Inc, with four insider buys over the past year. In this article, we will take a closer look at Thomas Bell, Leidos Holdings Inc, and the relationship between insider transactions and stock price.
Who is Thomas Bell?
Thomas Bell is the CEO of Leidos Holdings Inc, a leading science and technology company that provides services and solutions in the defense, intelligence, civil, and health markets. With a strong background in the industry, Bell has been instrumental in driving the company's growth and success.
Leidos Holdings Inc Business Description
Leidos Holdings Inc is a Fortune 500 company that specializes in providing scientific, engineering, systems integration, and technical services to various sectors. The company operates through three main segments: Defense Solutions, Civil, and Health. Its services include cybersecurity, data analytics, logistics, systems engineering, and mission-critical IT support. Leidos Holdings Inc is committed to addressing some of the world's most complex problems, from national security to public health, by leveraging its expertise and innovative solutions.
Insider Buying and Stock Price Relationship
Over the past year, Thomas Bell has purchased a total of 6,300 shares and has not sold any shares. This is in line with the broader trend of insider buying at Leidos Holdings Inc, which has seen four insider buys in total over the past year. Meanwhile, there have been 12 insider sells over the same timeframe.
Insider transactions can provide valuable insights into a company's prospects and the confidence of its management. In the case of Leidos Holdings Inc, the recent insider buying activity may signal a positive outlook for the company and its stock price.
Valuation
On the day of Thomas Bell's recent purchase, shares of Leidos Holdings Inc were trading at $78.81 apiece, giving the stock a market cap of $11,062.54 million. The price-earnings ratio is 16.59, which is lower than the industry median of 26.98 and lower than the company's historical median price-earnings ratio.
With a price of $78.81 and a GuruFocus Value of $114.00, Leidos Holdings Inc has a price-to-GF-Value ratio of 0.69. This means the stock is modestly undervalued based on its GF Value.
The GF Value is an intrinsic value estimate developed by GuruFocus that is calculated based on the following three factors:
- Historical multiples (price-earnings ratio, price-sales ratio, price-book ratio, and price-to-free cash flow) that the stock has traded at.
- A GuruFocus adjustment factor based on the company's past returns and growth.
- Future estimates of business performance from Morningstar analysts.
In conclusion, the recent insider buying activity by CEO Thomas Bell, along with the stock's modest undervaluation, may indicate a positive outlook for Leidos Holdings Inc. Investors should keep an eye on the company's performance and insider transactions to gain further insights into its prospects.
