Lockheed Martin (NYSE:LMT) Shares Down 2.2% - Here's Why

Key Points

• Lockheed Martin shares fell 2.2% to about $499 in mid-day trading, underperforming its recent moving averages and remaining well below its 52-week high.
• The company continues to benefit from strong defense demand, including a potential $1.71 billion electronic-warfare award and a $245 million missile-defense contract modification, while analysts have raised several price targets.
• Investors are awaiting third-quarter results for confirmation of growth and guidance. Despite an average “Hold” rating, analysts’ consensus price target is $638.21, and Lockheed recently reported earnings and revenue above expectations while maintaining a $13.80 annual dividend.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) traded down 2.2% during mid-day trading on Wednesday. The company traded as low as $498.73 and last traded at $499.1270. 1,072,336 shares traded hands during trading, a decline of 26% from the average session volume of 1,450,956 shares. The stock had previously closed at $510.12.

Trending Headlines about Lockheed Martin

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

• Positive Sentiment: Analyst upgrade: Rothschild & Co. Redburn upgraded Lockheed Martin to “strong buy,” signaling increased confidence in the company’s valuation and long-term prospects. Rothschild & Co Redburn Upgrades Lockheed Martin to Strong-Buy
• Positive Sentiment: Electronic-warfare award: A $209 million Navy contract modification, with potential options that could raise the total value to approximately $1.71 billion, improves revenue visibility for Lockheed Martin’s electronic-warfare business. Can Electronic Warfare Demand Boost Lockheed Martin’s Growth?
• Positive Sentiment: Missile-defense demand: Lockheed Martin received a $245 million modification for a second-generation IRST Block II order, while Boeing received a $14.7 billion contract from Lockheed to triple PAC-3 MSE seeker production. The developments point to strong demand for missile-defense and military modernization programs. Lockheed Martin Nabs $245 Million Modification
• Positive Sentiment: Strategic growth backdrop: Rising defense budgets, missile-defense initiatives and replenishment demand related to geopolitical tensions are supporting the broader aerospace and defense sector, benefiting Lockheed Martin’s long-term order outlook. 3 Space Stocks Worth Owning This October
• Neutral Sentiment: Q3 expectations: Analysts remain focused on Lockheed Martin’s upcoming third-quarter results. Recent commentary characterizes the stock as a buying opportunity after its pullback, but investors may be waiting for earnings to confirm growth, margins and guidance. Lockheed Martin Q3 Earnings Preview
• Negative Sentiment: Relative underperformance: Lockheed Martin has lagged the broader market over recent periods and remains well below its 52-week high. That weakness can keep investors cautious despite its defense-contract pipeline and valuation arguments. Lockheed Martin Is Cheap and Lagging

Analysts Set New Price Targets

A number of brokerages recently commented on LMT. Morgan Stanley increased their price target on Lockheed Martin from $653.00 to $690.00 and gave the company an "equal weight" rating in a report on Friday, July 24th. UBS Group raised Lockheed Martin from a "neutral" rating to a "buy" rating and upped their target price for the company from $581.00 to $674.00 in a research report on Tuesday, September 8th. Royal Bank Of Canada increased their target price on Lockheed Martin from $575.00 to $600.00 and gave the company a "sector perform" rating in a research note on Friday, July 24th. Citigroup raised their price target on shares of Lockheed Martin from $641.00 to $691.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Finally, Wall Street Zen upgraded shares of Lockheed Martin from a "buy" rating to a "strong-buy" rating in a research note on Sunday, September 20th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company's stock. Based on data from MarketBeat.com, Lockheed Martin has an average rating of "Hold" and an average price target of $638.21.

Lockheed Martin Stock Performance

The company has a fifty day moving average of $552.10 and a two-hundred day moving average of $549.20. The stock has a market capitalization of $115.19 billion, a P/E ratio of 18.40, a price-to-earnings-growth ratio of 1.10 and a beta of 0.09. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.19 and a quick ratio of 1.01.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its earnings results 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 company had revenue of $20.06 billion during the quarter, compared to analyst estimates of $19.34 billion. During the same quarter last year, the firm earned $1.46 EPS. The business'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. On average, equities analysts anticipate that Lockheed Martin Corporation will post 30.44 EPS for the current year.

Lockheed Martin Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st were issued a $3.45 dividend. This represents a $13.80 dividend on an annualized basis and a yield of 2.8%. The ex-dividend date of this dividend was Tuesday, September 1st. Lockheed Martin's payout ratio is currently 50.87%.

Institutional Trading of Lockheed Martin

A number of institutional investors and hedge funds have recently modified their holdings of the business. State Street Corp grew its position in shares of Lockheed Martin by 1.3% during the 2nd quarter. State Street Corp now owns 32,975,170 shares of the aerospace company's stock valued at $16,799,530,000 after buying an additional 419,582 shares during the last quarter. BlackRock Inc. bought a new position in Lockheed Martin in the second quarter worth about $9,617,574,000. Corient Private Wealth LP acquired a new position in Lockheed Martin in the second quarter valued at approximately $101,960,000. Deutsche Bank AG boosted its stake in Lockheed Martin by 7.4% in the fourth quarter. Deutsche Bank AG now owns 1,440,840 shares of the aerospace company's stock valued at $696,891,000 after acquiring an additional 99,403 shares during the period. Finally, Bank of New York Mellon Corp acquired a new position in Lockheed Martin in the second quarter valued at approximately $645,258,000. 74.19% of the stock is 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.

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.