Lockheed Martin (NYSE:LMT) Stock Price Down 1.9% - Time to Sell?

Key Points

• Lockheed Martin shares fell 1.9% on Thursday, closing at $517.71 after trading as low as $515.55, with volume well below average.
• The company recently won more than $607 million in new U.S. defense contracts, adding to a massive $194 billion backlog, but investors remain focused on margin pressure and a recent earnings miss.
• Wall Street sentiment is cautious: the stock has a consensus Hold rating and a target price of $609.68, while analysts await upcoming results to see whether backlog conversion and acquisitions can improve earnings momentum.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) shares dropped 1.9% on Thursday . The company traded as low as $515.55 and last traded at $517.7110. 978,270 shares were traded during trading, a decline of 39% from the average session volume of 1,603,676 shares. The stock had previously closed at $527.96.

Trending Headlines about Lockheed Martin

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

• Positive Sentiment: Lockheed Martin won more than $607 million in new U.S. defense contracts, including work tied to Apache sustainment and Air Force GPS upgrades, which adds to its already massive $194 billion backlog. Lockheed Martin wins two U.S. defense contracts worth over $607M
• Positive Sentiment: Rising geopolitical tensions and renewed Iran war fears lifted defense stocks, including LMT, as investors rotated into contractors with strong exposure to missile systems and military spending. Northrup, Lockheed, Other Defense Stocks Rise as Trump Sparks Iran War Fears
• Positive Sentiment: Goldman Sachs won the mandate to manage a combined $70 billion in retirement assets for Verizon and Lockheed Martin, reinforcing Lockheed’s scale and financial flexibility. Goldman Sachs wins $70 billion in asset management deals with Verizon, Lockheed Martin
• Neutral Sentiment: Analyst commentary continues to highlight Lockheed’s defense “moat” and long-term backlog, but also notes first-quarter margin compression and the need for a strong July 23 earnings report to reassure investors. Lockheed Martin Secures the Ultimate Defense Moat
• Neutral Sentiment: Upcoming second-quarter results are expected to be a key catalyst, with investors watching to see whether backlog conversion and the Ultra Maritime acquisition help improve margins and earnings momentum. Lockheed Martin: The Proposed 2027 Defense Budget Makes The Bull Case Hard To Ignore
• Negative Sentiment: Despite strong contract flow, Lockheed’s recent quarter showed margin pressure and an earnings miss, which has kept investors focused on execution risk rather than just backlog growth. Lockheed Martin Secures the Ultimate Defense Moat

Wall Street Analysts Forecast Growth

A number of research analysts have weighed in on LMT shares. Weiss Ratings lowered shares of Lockheed Martin from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, June 9th. TD Cowen dropped 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. Sanford C. Bernstein reiterated a "market perform" rating on shares of Lockheed Martin in a research report on Friday, May 29th. Deutsche Bank Aktiengesellschaft lowered their price objective on Lockheed Martin from $615.00 to $575.00 and set a "hold" rating on the stock in a research note on Friday, April 24th. Finally, BNP Paribas Exane dropped their target price on Lockheed Martin from $770.00 to $680.00 and set an "outperform" rating for the company in a report on Friday, April 24th. One research analyst has rated the stock with a Strong Buy rating, seven have assigned a Buy rating, twelve have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat, Lockheed Martin currently has a consensus rating of "Hold" and a consensus target price of $609.68.

Lockheed Martin Stock Down 1.9%

The stock has a market capitalization of $119.36 billion, a price-to-earnings ratio of 25.07, a PEG ratio of 0.97 and a beta of 0.11. The company has a debt-to-equity ratio of 2.74, a current ratio of 1.14 and a quick ratio of 0.94. The business has a fifty day moving average of $521.34 and a 200 day moving average of $570.48.

Lockheed Martin (NYSE:LMT - Get Free Report) last posted its earnings results on Thursday, April 23rd. The aerospace company reported $6.44 earnings per share (EPS) for the quarter, missing the consensus estimate of $6.79 by ($0.35). Lockheed Martin had a return on equity of 101.64% and a net margin of 6.38%.The business had revenue of $18.02 billion for the quarter, compared to analyst estimates of $18.38 billion. During the same period last year, the business earned $7.28 EPS. Lockheed Martin's revenue was up .3% compared to the same quarter last year. Lockheed Martin has set its FY 2026 guidance at 29.350-30.250 EPS. As a group, equities analysts predict that Lockheed Martin Corporation will post 29.93 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. This represents a $13.80 dividend on an annualized basis and a dividend yield of 2.7%. The ex-dividend date of this dividend was Monday, June 1st. Lockheed Martin's dividend payout ratio (DPR) is presently 66.83%.

Institutional Inflows and Outflows

A number of large investors have recently bought and sold shares of the stock. Cerro Pacific Wealth Advisors LLC lifted its holdings in shares of Lockheed Martin by 1.2% in the 4th quarter. Cerro Pacific Wealth Advisors LLC now owns 1,376 shares of the aerospace company's stock worth $665,000 after acquiring an additional 16 shares during the last quarter. Garner Asset Management Corp increased its holdings in Lockheed Martin by 0.9% in the 4th quarter. Garner Asset Management Corp now owns 1,735 shares of the aerospace company's stock valued at $839,000 after purchasing an additional 16 shares during the last quarter. Davis R M Inc. increased its holdings in Lockheed Martin by 1.3% in the 4th quarter. Davis R M Inc. now owns 1,264 shares of the aerospace company's stock valued at $612,000 after purchasing an additional 16 shares during the last quarter. Broadway Wealth Solutions Inc. raised its position in Lockheed Martin by 3.6% in the fourth quarter. Broadway Wealth Solutions Inc. now owns 484 shares of the aerospace company's stock valued at $234,000 after purchasing an additional 17 shares during the period. Finally, Aspire Growth Partners LLC raised its position in Lockheed Martin by 0.7% in the fourth quarter. Aspire Growth Partners LLC now owns 2,515 shares of the aerospace company's stock valued at $1,217,000 after purchasing an additional 17 shares during the period. Institutional investors and hedge funds own 74.19% of the company's stock.

Lockheed Martin Company Profile

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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