Lockheed Martin (NYSE:LMT) Shares Climb 1.7% - Should You Buy?

Key Points

• Lockheed Martin shares rose 1.7% to about $507.81, though trading volume was 24% below the average. The stock remains below its 50-day and 200-day moving averages near $550.
• Growth prospects received support from a Pentagon framework agreement to accelerate AIM-260 missile production, a $245 million IRST contract modification, and the company’s large backlog. Recent quarterly results also exceeded expectations, with revenue up 10.5% year over year.
• Analyst sentiment is mixed but generally constructive: the consensus rating is Hold with a $638.21 target, while Rothschild & Co. initiated coverage with a Buy rating and a $650 target. Lockheed Martin also offers a $13.80 annual dividend, yielding about 2.7%.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) shares were up 1.7% during mid-day trading on Thursday. The company traded as high as $509.08 and last traded at $507.8050. 1,100,768 shares traded hands during mid-day trading, a decline of 24% from the average daily volume of 1,450,138 shares. The stock had previously closed at $499.22.

Key Headlines Impacting Lockheed Martin

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

• Positive Sentiment: Lockheed Martin reached a framework agreement with the Pentagon to accelerate production and deliveries of its AIM-260 Joint Advanced Tactical Missile. The program could provide multiyear revenue visibility and strengthen the company’s position in air-dominance weapons. Can Lockheed Martin’s AIM-260 Missile Deliver Multiyear Growth?
• Positive Sentiment: Rothschild & Co. Redburn initiated coverage with a Buy rating and a $650 price target, implying substantial upside from recent trading levels. The new bullish coverage may improve sentiment toward the shares. Rothschild & Co. initiates coverage of Lockheed Martin with buy
• Positive Sentiment: Recent analysis highlighted Lockheed Martin’s large backlog, missile growth opportunities and the possibility of margin recovery, factors that could improve the company’s earnings outlook. The company also secured a $245 million modification for a second IRST Block II order. Lockheed Martin Nabs $245 Million Modification for Second IRST Block II Order
• Neutral Sentiment: Lockheed Martin announced the first flight of Morocco’s initial F-16 Block 72, demonstrating progress on an international aircraft program but offering limited immediate information about financial impact. Lockheed Martin Announces First Flight of Morocco’s First F-16 Block 72
• Negative Sentiment: The stock recently underperformed the broader market and experienced a larger single-session decline, reflecting lingering investor concerns despite its defense exposure and long-term growth opportunities. Lockheed Martin Suffers a Larger Drop Than the General Market

Analyst Ratings Changes

Several analysts have recently weighed in on the stock. Wells Fargo & Company set a $600.00 price target on shares of Lockheed Martin in a research note on Monday, July 27th. Wall Street Zen upgraded Lockheed Martin from a "buy" rating to a "strong-buy" rating in a report on Sunday, September 20th. Rothschild & Co Redburn began coverage on Lockheed Martin in a research report on Tuesday. They issued a "buy" rating and a $650.00 price objective for the company. Royal Bank Of Canada raised their target price on Lockheed Martin from $575.00 to $600.00 and gave the stock a "sector perform" rating in a research note on Friday, July 24th. Finally, Morgan Stanley lifted their target price on Lockheed Martin from $653.00 to $690.00 and gave the company an "equal weight" rating in a research report on Friday, July 24th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Lockheed Martin presently has an average rating of "Hold" and a consensus target price of $638.21.

Lockheed Martin Stock Performance

The stock has a market capitalization of $117.20 billion, a PE ratio of 18.72, a price-to-earnings-growth ratio of 1.11 and a beta of 0.09. The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 2.34. The stock has a fifty day moving average of $550.68 and a 200-day moving average of $548.23.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The aerospace company reported $7.94 earnings per share 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 company had revenue of $20.06 billion for the quarter, compared to the consensus estimate of $19.34 billion. During the same quarter in the prior year, the business earned $1.46 EPS. Lockheed Martin's revenue was up 10.5% on a year-over-year basis. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS. Equities analysts anticipate that Lockheed Martin Corporation will post 30.44 earnings per share for the current fiscal year.

Lockheed Martin Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st were paid a $3.45 dividend. This represents a $13.80 annualized dividend and a yield of 2.7%. The ex-dividend date was Tuesday, September 1st. Lockheed Martin's dividend payout ratio is currently 50.87%.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the business. IAG Wealth Partners LLC raised its stake in shares of Lockheed Martin by 4,800.0% during the first quarter. IAG Wealth Partners LLC now owns 49 shares of the aerospace company's stock worth $30,000 after purchasing an additional 48 shares during the last quarter. Burnham & Co LLC purchased a new stake in shares of Lockheed Martin during the 2nd quarter worth $25,000. Basso Capital Management L.P. acquired a new position in shares of Lockheed Martin during the 4th quarter worth $25,000. Field & Main Bank acquired a new stake in shares of Lockheed Martin in the 2nd quarter worth approximately $26,000. Finally, Clarity Asset Management Inc. purchased a new position in Lockheed Martin in the 4th quarter valued at approximately $26,000. 74.19% of the stock is currently owned by institutional investors and hedge funds.

About Lockheed Martin

Lockheed Martin Corporation is a global aerospace, defense and technology company headquartered in Bethesda, Maryland. The company develops and produces advanced systems for government and commercial customers, with the U.S. Department of Defense and other U.S. government agencies representing its primary customers.

Its principal activities include the design and manufacture of military aircraft, missiles, air and missile defense systems, radar and sensor technologies, naval and rotary-wing systems, satellites, space exploration systems, and cybersecurity and information technology solutions.

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