Lockheed Martin (NYSE:LMT) Cut to "Buy" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Lockheed Martin from “strong buy” to “buy.” Overall analyst sentiment remains mixed, with an average “hold” rating and a $637.56 price target.
• Lockheed Martin reported quarterly earnings of $7.94 per share, beating estimates of $7.22, while revenue rose 10.5% year over year to $20.06 billion. The company expects fiscal 2026 earnings of $29.95–$30.65 per share.
• Shares opened at $524.40, down 1.1%, and remain below their 50-day and 200-day moving averages. Institutional investors own 74.19% of the stock, while defense-program advances and stronger long-term demand offer potential support despite margin and execution risks.

Lockheed Martin (NYSE:LMT - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a research note issued to investors on Saturday, Wall Street Zen reports.

A number of other equities research analysts have also recently issued reports on the company. Weiss Ratings raised Lockheed Martin from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Thursday, August 13th. TD Cowen dropped their price target on shares of Lockheed Martin from $600.00 to $560.00 and set a "hold" rating on the stock in a research report on Monday, July 13th. Sanford C. Bernstein restated a "market perform" rating on shares of Lockheed Martin in a research note on Friday, May 29th. Jefferies Financial Group restated a "hold" rating on shares of Lockheed Martin in a research note on Wednesday, September 2nd. Finally, UBS Group raised shares of Lockheed Martin from a "neutral" rating to a "buy" rating and upped their price objective for the stock from $581.00 to $674.00 in a report on Tuesday. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average target price of $637.56.

Lockheed Martin Trading Down 1.1%

Lockheed Martin stock opened at $524.40 on Friday. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.19 and a quick ratio of 1.01. The company has a market capitalization of $121.03 billion, a price-to-earnings ratio of 19.33, a PEG ratio of 1.15 and a beta of 0.10. Lockheed Martin has a one year low of $437.25 and a one year high of $692.00. The company's fifty day moving average price is $555.94 and its two-hundred day moving average price is $565.85.

Lockheed Martin (NYSE:LMT - Get Free Report) last posted its earnings results on Thursday, July 23rd. The aerospace company reported $7.94 earnings per share for the quarter, beating the consensus estimate of $7.22 by $0.72. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%.The company had revenue of $20.06 billion for the quarter, compared to analyst estimates of $19.34 billion. During the same period last year, the company earned $1.46 earnings per share. The business's revenue was up 10.5% compared to the same quarter last year. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS. On average, analysts forecast that Lockheed Martin will post 30.39 earnings per share for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in LMT. California State Teachers Retirement System grew its stake in shares of Lockheed Martin by 49,985.5% in the second quarter. California State Teachers Retirement System now owns 163,027,709 shares of the aerospace company's stock worth $83,056,097,000 after acquiring an additional 162,702,210 shares during the last quarter. BlackRock Inc. acquired a new position in Lockheed Martin during the 2nd quarter valued at $9,617,574,000. Charles Schwab Investment Management Inc. boosted its holdings in Lockheed Martin by 1.3% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 8,638,936 shares of the aerospace company's stock valued at $4,178,399,000 after purchasing an additional 114,900 shares during the period. Corient Private Wealth LP bought a new stake in Lockheed Martin in the 2nd quarter valued at $101,960,000. Finally, Morgan Stanley grew its position in Lockheed Martin by 10.1% in the 4th quarter. Morgan Stanley now owns 5,728,551 shares of the aerospace company's stock worth $2,770,729,000 after purchasing an additional 527,523 shares during the last quarter. 74.19% of the stock is owned by institutional investors.

Key Stories Impacting Lockheed Martin

Here are the key news stories impacting Lockheed Martin this week:

• Positive Sentiment: The U.S. Army confirmed that Lockheed Martin has advanced to the demonstration phase of the competition for the Integrated Fires Protection Capability Increment 2 second interceptor. Progress in the program could support future missile-defense orders, although a contract award is not yet assured. Army Confirms Lockheed Also Advances To Demo Phase Of IFPC Inc. 2 Second Interceptor Competition
• Positive Sentiment: UBS upgraded Lockheed Martin, citing a structural increase in defense demand that could provide durable support for the company’s backlog and revenue outlook. UBS sees a structural shift building at Lockheed Martin
• Positive Sentiment: Lockheed Martin and IBM are establishing a quantum-computing innovation hub at ETH Zurich, funded in part through Switzerland’s offset obligations related to its purchase of 36 F-35A aircraft. The IBM Quantum System Two will support research into navigation, materials science and other potential defense applications. The initiative strengthens Lockheed’s technology partnerships but is unlikely to materially affect near-term earnings. IBM, Lockheed Martin Announce Swiss Quantum Innovation Hub
• Neutral Sentiment: CEO Jim Taiclet and CFO Evan Scott are scheduled to participate in a Morgan Stanley conference. Investors may look for updates on demand, margins, cash flow and program execution. Lockheed Martin executives to speak at Morgan Stanley conference
• Negative Sentiment: Recent analysis cautions that fixed-price contracts could pressure margins if costs rise, while political scrutiny and shifting defense priorities may challenge traditional business practices. At roughly 17–18 times forward earnings and with a dividend yield near 2.6%, the valuation reflects some of these risks but leaves investors focused on execution. Lockheed Martin valuation and risk analysis

About Lockheed Martin

Lockheed Martin Corporation is a global aerospace, defense and technology company that develops and produces systems for government and commercial customers, with the U.S. Department of Defense serving as its largest customer. Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

The company's products and services include military aircraft such as the F-35 Lightning II, F-16 and C-130; air and missile defense systems; precision weapons; helicopters and maritime systems; radar, sensors and command-and-control technologies; satellites; space exploration systems; and missile-warning and strategic defense capabilities.

Lockheed Martin was created in 1995 through the merger of Lockheed Corporation and Martin Marietta.

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