WASHINGTON D.C. – Leidos Holdings , Inc. (NYSE:), a defense contractor and information technology company, is currently under the significant influence of institutional investors who hold a substantial 76% of the company’s shares. This concentration of ownership, particularly with the top 15 shareholders like BlackRock (NYSE:), Inc., controlling over half of the company at 51%, introduces a ‘crowded trade’ risk. This situation could lead to rapid share price fluctuations if these major investors were to shift their positions.
The company’s insiders, on the other hand, own less than 1% of Leidos Holdings, which translates to approximately $105 million worth of shares. The recent activities of insider selling have raised concerns about potential issues within the company that could be affecting its stability and future growth prospects.
Retail investors are not to be overlooked as they hold a 23% stake in Leidos and have the ability to collectively influence company policies. Their perception of the company is often shaped by analyst forecasts which provide insights into Leidos’ potential future growth.
Investors are advised to consider three warning signs associated with Leidos Holdings that hint at potential underlying issues. These signs could have implications for the company’s performance going forward and should be taken into account when evaluating the stability and potential of Leidos Holdings’ stock.
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