Lockheed Martin (NYSE:LMT) Shares Down 1.5% - Should You Sell?

Key Points

• Lockheed Martin shares fell 1.5% on Monday amid lighter-than-usual trading volume, with the stock ending below its previous close.
• The main catalyst appears to be Lockheed Martin’s $3.45 billion acquisition of Ultra Maritime, which expands its undersea warfare, anti-submarine warfare, and sonar capabilities, but also raises concerns about debt, capital allocation, and integration risk.
• Wall Street sentiment is mixed: the stock has a consensus rating of Hold with an average target price of $613.63, while the company also recently reported an earnings miss and maintains a 2.6% dividend yield.

Shares of Lockheed Martin Corporation (NYSE:LMT - Get Free Report) fell 1.5% during mid-day trading on Monday . The stock traded as low as $535.17 and last traded at $537.62. Approximately 932,340 shares were traded during trading, a decline of 43% from the average session volume of 1,621,833 shares. The stock had previously closed at $545.91.

Key Lockheed Martin News

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

• Positive Sentiment: The Ultra Maritime acquisition deepens Lockheed Martin’s undersea warfare and anti-submarine warfare capabilities, potentially boosting its long-term defense portfolio. Lockheed Martin to Acquire Ultra Maritime Solutions
• Positive Sentiment: The deal expands LMT’s sonar and maritime systems offerings, which could improve its competitiveness in naval defense contracts. Lockheed Martin to buy Ultra Maritime for $3.45 billion
• Neutral Sentiment: Lockheed Martin is drawing attention as a trending stock, but that interest appears tied more to the acquisition news than to any new operating update. Lockheed Martin Corporation (LMT) Is a Trending Stock: Facts to Know Before Betting on It
• Negative Sentiment: Investors may be worried about the size of the $3.45 billion purchase and its near-term impact on capital allocation, debt, and integration risk. M&A News: Lockheed Martin Stock (LMT) Sinks Despite $3.5B Deal to Buy Naval Specialist Ultra Maritime

Wall Street Analyst Weigh In

Several research firms recently weighed in on LMT. Weiss Ratings downgraded Lockheed Martin from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 9th. Sanford C. Bernstein reissued a "market perform" rating on shares of Lockheed Martin in a report on Friday, May 29th. DZ Bank raised Lockheed Martin from a "hold" rating to a "strong-buy" rating in a research note on Thursday, April 30th. Wells Fargo & Company assumed coverage on Lockheed Martin in a report on Wednesday, April 1st. They set an "equal weight" rating and a $650.00 price target for the company. Finally, TD Cowen lowered their price target on Lockheed Martin from $670.00 to $600.00 and set a "hold" rating for the company in a research report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat, the company currently has a consensus rating of "Hold" and an average target price of $613.63.

Lockheed Martin Stock Performance

The company has a market capitalization of $123.95 billion, a PE ratio of 26.03, a price-to-earnings-growth ratio of 0.99 and a beta of 0.11. The company has a current ratio of 1.14, a quick ratio of 0.94 and a debt-to-equity ratio of 2.74. The business's fifty day moving average is $520.46 and its two-hundred day moving average is $569.22.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its earnings results on Thursday, April 23rd. The aerospace company reported $6.44 EPS for the quarter, missing the consensus estimate of $6.79 by ($0.35). Lockheed Martin had a net margin of 6.38% and a return on equity of 101.64%. The business had revenue of $18.02 billion for the quarter, compared to analysts' expectations of $18.38 billion. During the same quarter in the prior year, the business posted $7.28 earnings per share. The business's revenue for the quarter was up .3% on a year-over-year basis. Lockheed Martin has set its FY 2026 guidance at 29.350-30.250 EPS. Equities research analysts predict that Lockheed Martin Corporation will post 29.88 earnings per share for the current year.

Lockheed Martin Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Friday, June 26th. Investors of record on Monday, June 1st were given a dividend of $3.45 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $13.80 annualized dividend and a dividend yield of 2.6%. Lockheed Martin's dividend payout ratio (DPR) is 66.83%.

Institutional Investors Weigh In On Lockheed Martin

A number of hedge funds have recently added to or reduced their stakes in LMT. Welch Group LLC raised its position in shares of Lockheed Martin by 1.5% during the 4th quarter. Welch Group LLC now owns 132,684 shares of the aerospace company's stock valued at $64,175,000 after buying an additional 1,999 shares in the last quarter. Jain Global LLC purchased a new position in Lockheed Martin in the third quarter worth about $38,064,000. World Investment Advisors increased its stake in Lockheed Martin by 54.7% during the fourth quarter. World Investment Advisors now owns 14,739 shares of the aerospace company's stock worth $7,129,000 after acquiring an additional 5,214 shares during the last quarter. SG Americas Securities LLC increased its stake in Lockheed Martin by 5.4% during the first quarter. SG Americas Securities LLC now owns 276,383 shares of the aerospace company's stock worth $167,043,000 after acquiring an additional 14,150 shares during the last quarter. Finally, Clough Capital Partners L P purchased a new stake in Lockheed Martin during the third quarter valued at approximately $31,018,000. 74.19% of the stock is currently owned by hedge funds and other institutional investors.

About Lockheed Martin

Lockheed Martin Corporation NYSE: LMT is a global aerospace and defense company that designs, develops and manufactures advanced technology systems for government and commercial customers. Formed through the 1995 merger of Lockheed Corporation and Martin Marietta, the company is headquartered in Bethesda, Maryland, and focuses on providing integrated solutions across air, space, land and sea domains. Its primary customers include the U.S. Department of Defense, NASA and allied governments around the world.

Lockheed Martin's product and service portfolio spans military aircraft, missile and fire-control systems, missile defense, space systems and satellite technologies, sensors and precision weapons.

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