Lockheed Martin (NYSE:LMT) Trading 2.5% Higher - Should You Buy?

Key Points

• Lockheed Martin shares rose 2.5% to about $608 after the U.S. Department of Defense awarded the company more than $152 million in contracts, with additional eligibility for a broader $920 million Air Force award.
• The company reported strong quarterly results, with revenue up 10.5% year over year and EPS of $7.94 exceeding estimates. It also declared a quarterly dividend of $3.45 per share, equivalent to a 2.3% annual yield.
• Despite favorable defense-sector demand and international program progress, analysts maintain an average “Hold” rating, citing valuation concerns; the average price target is $632.39.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) shares traded up 2.5% on Tuesday . The company traded as high as $612.75 and last traded at $608.3030. 1,022,071 shares traded hands during trading, a decline of 33% from the average daily volume of 1,521,462 shares. The stock had previously closed at $593.74.

Key Stories Impacting Lockheed Martin

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

• Positive Sentiment: The U.S. Department of Defense awarded Lockheed Martin multiple contracts totaling more than $152 million. LMT is also among 24 companies eligible for work under a broader Air Force award valued at approximately $920 million, supporting backlog and future revenue visibility. Lockheed Wins Slew Of Contracts. Air Force Doles Out $920 Mil Award.
• Positive Sentiment: Lockheed validated the first Japanese ASEV radar shipset, marking progress on an international naval-defense program. The milestone could strengthen confidence in LMT’s ability to deliver advanced radar systems and benefit future overseas orders. Lockheed Martin Validates First Japanese ASEV Radar Shipset
• Positive Sentiment: Investor commentary remains favorable toward LMT, citing its strong defense fundamentals, income potential and analyst support. This reinforces the stock’s appeal as a relatively stable way to participate in elevated defense spending. Lockheed Martin + Sandisk: Balance And Diversification, Growth And Income
• Neutral Sentiment: RTX won a separate $22.9 billion, seven-year Navy Tomahawk contract and raised its 2026 outlook after beating earnings estimates. The award does not directly add to LMT’s backlog, but it confirms strong multi-year demand for precision munitions and could provide a positive read-through for the defense sector while highlighting competitive pressures. RTX Stock Gets a Radar Lock on a $23B Navy Win
• Neutral Sentiment: United Launch Alliance, the Lockheed-Boeing joint venture, appointed Mark Peller as chief executive after months of interim leadership. The change may improve stability, although ULA continues to face challenges surrounding its Vulcan rocket program. United Launch Alliance names new CEO amid Vulcan rocket travails
• Negative Sentiment: Valuation-focused analysis questions whether LMT’s premium has become too wide compared with its earnings outlook and the S&P 500. The concern could limit further upside if future contract wins or financial results do not keep pace with the stock’s valuation. Lockheed Martin: Is the Valuation Gap Getting Wider?

Wall Street Analyst Weigh In

A number of equities analysts have issued reports on the stock. TD Cowen reduced their price objective on shares of Lockheed Martin from $600.00 to $560.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. JPMorgan Chase & Co. cut their price target on Lockheed Martin from $680.00 to $605.00 and set a "neutral" rating on the stock in a research note on Tuesday, May 5th. Sanford C. Bernstein restated a "market perform" rating on shares of Lockheed Martin in a research report on Friday, May 29th. Bank of America decreased their price objective on Lockheed Martin from $660.00 to $600.00 and set a "neutral" rating for the company in a research note on Friday, April 24th. Finally, Susquehanna dropped their price objective on Lockheed Martin from $740.00 to $700.00 and set a "positive" rating for the company in a report on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of "Hold" and an average price target of $632.39.

Lockheed Martin Stock Up 2.5%

The company has a market cap of $140.39 billion, a price-to-earnings ratio of 22.42, a price-to-earnings-growth ratio of 1.04 and a beta of 0.10. The company has a current ratio of 1.19, a quick ratio of 1.01 and a debt-to-equity ratio of 2.34. The firm's fifty day moving average price is $544.00 and its 200-day moving average price is $576.42.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its quarterly earnings data on Thursday, July 23rd. The aerospace company reported $7.94 EPS for the quarter, topping 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 business had revenue of $20.06 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter last year, the business posted $1.46 EPS. The firm'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. Sell-side analysts predict that Lockheed Martin Corporation will post 30.39 earnings per share for the current year.

Lockheed Martin Dividend Announcement

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Tuesday, September 1st will be issued a dividend of $3.45 per share. This represents a $13.80 annualized dividend and a dividend yield of 2.3%. The ex-dividend date is Tuesday, September 1st. Lockheed Martin's payout ratio is 50.87%.

Institutional Trading of Lockheed Martin

Large investors have recently bought and sold shares of the business. Rakuten Investment Management Inc. boosted its holdings in shares of Lockheed Martin by 10.2% in the second quarter. Rakuten Investment Management Inc. now owns 33,446 shares of the aerospace company's stock valued at $16,792,000 after buying an additional 3,109 shares during the period. RB Capital Management LLC raised its holdings in shares of Lockheed Martin by 0.8% during the second quarter. RB Capital Management LLC now owns 4,660 shares of the aerospace company's stock worth $2,374,000 after acquiring an additional 36 shares during the period. Glenview Trust Co raised its holdings in shares of Lockheed Martin by 0.5% during the second quarter. Glenview Trust Co now owns 59,220 shares of the aerospace company's stock worth $30,170,000 after acquiring an additional 289 shares during the period. Papamarkou Wellner Asset Management inc. lifted its position in Lockheed Martin by 20,302.9% in the 2nd quarter. Papamarkou Wellner Asset Management inc. now owns 627,798 shares of the aerospace company's stock valued at $319,838,000 after acquiring an additional 624,721 shares in the last quarter. Finally, Dearborn Partners LLC bought a new stake in Lockheed Martin in the 2nd quarter valued at $1,119,000. 74.19% of the stock is owned by 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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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