Lockheed Martin (NYSE:LMT) Shares Down 3.1% - Time to Sell?

Key Points

• Lockheed Martin shares fell 3.1% to about $576, amid investor concerns that the proposed U.S. defense budget could be cut from $1.5 trillion to roughly $1.1 trillion, potentially weighing on future contracts.
• Analysts’ outlook remains broadly positive: the stock has a Moderate Buy consensus rating and a $647 average price target; Guggenheim initiated coverage with a Buy rating and a $735 target.
• Recent business updates included a planned $420 million expansion of missile operations in Arkansas and quarterly results ahead of estimates, with revenue up 11.3% year over year. The company also raised its quarterly dividend from $3.45 to $3.60 per share.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) was down 3.1% on Thursday. The company traded as low as $575.71 and last traded at $576.7110. 1,764,089 shares were traded during trading, an increase of 20% from the average session volume of 1,473,162 shares. The stock had previously closed at $595.04.

Key Headlines Impacting Lockheed Martin

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

• Positive Sentiment: Guggenheim initiated coverage with a Buy rating and a $735 price target, signaling potential upside in the analyst’s view. Lockheed Martin Now Covered by Guggenheim
• Positive Sentiment: Lockheed plans to invest $420 million to expand missile operations in Arkansas, adding production capacity in a key business area. Lockheed Martin Invests $420 Million to Expand Missile Operations in Arkansas
• Neutral Sentiment: Lockheed agreed to pay $29.5 million to settle federal claims related to its diversity programs. The settlement creates legal and reputational overhang, though the payment is relatively small compared with the company’s scale. Lockheed Martin Paying $29.5M Settlement
• Negative Sentiment: Democrats’ midterm gains put the proposed $1.5 trillion defense budget in doubt, with reports suggesting it could be reduced to about $1.1 trillion. Investors are concerned that lower spending or delays could constrain future contracts and growth for defense contractors, including Lockheed. Why Lockheed Martin Stock Dropped Today

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on the company. Wells Fargo & Company raised their price objective on Lockheed Martin from $600.00 to $700.00 and gave the company an "equal weight" rating in a research report on Monday. Wall Street Zen lowered Lockheed Martin from a "strong-buy" rating to a "buy" rating in a report on Saturday, October 17th. Royal Bank Of Canada increased their price target on Lockheed Martin from $550.00 to $600.00 and gave the company a "sector perform" rating in a research note on Friday, October 23rd. Vertical Research raised Lockheed Martin from a "hold" rating to a "buy" rating and set a $600.00 price target for the company in a report on Wednesday, October 14th. Finally, Morgan Stanley raised 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. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have given a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $647.00.

Lockheed Martin Stock Performance

The company's fifty day simple moving average is $548.02 and its two-hundred day simple moving average is $569.72. The company has a debt-to-equity ratio of 2.04, a quick ratio of 1.10 and a current ratio of 1.26. The stock has a market capitalization of $133.22 billion, a P/E ratio of 20.49, a PEG ratio of 1.36 and a beta of 0.07.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its quarterly earnings data on Thursday, October 22nd. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $7.52 by $0.45. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The company had revenue of $20.71 billion during the quarter, compared to analysts' expectations of $20.48 billion. During the same quarter in the previous year, the company posted $6.95 earnings per share. The business's revenue was up 11.3% on a year-over-year basis. As a group, equities analysts forecast that Lockheed Martin Corporation will post 30.66 EPS for the current year.

Lockheed Martin Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be issued a dividend of $3.60 per share. This represents a $14.40 annualized dividend and a yield of 2.5%. The ex-dividend date of this dividend is Tuesday, December 1st. This is an increase from Lockheed Martin's previous quarterly dividend of $3.45. Lockheed Martin's payout ratio is 51.15%.

Institutional Trading of Lockheed Martin

Institutional investors have recently added to or reduced their stakes in the company. Norris Financial Group LLC bought a new position in shares of Lockheed Martin in the first quarter valued at $2,321,000. CX Institutional increased its position in shares of Lockheed Martin by 527.4% during the third quarter. CX Institutional now owns 18,415 shares of the aerospace company's stock worth $9,378,000 after acquiring an additional 15,480 shares in the last quarter. Talon Private Wealth LLC bought a new stake in shares of Lockheed Martin during the first quarter worth about $3,743,000. Meeder Asset Management Inc. bought a new stake in shares of Lockheed Martin during the second quarter worth about $11,036,000. Finally, OneDigital Investment Advisors LLC acquired a new stake in shares of Lockheed Martin in the 2nd quarter worth about $4,796,000. 74.19% of the stock is currently owned by institutional investors.

Lockheed Martin Company Profile

Lockheed Martin Corporation is a global security and aerospace company headquartered in Bethesda, Maryland. Formed in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company develops and produces advanced defense, aerospace, and technology systems for government and commercial customers.

Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Products and services include military aircraft such as the F-35 Lightning II, C-130 Hercules, and F-16 Fighting Falcon; missile-defense and precision-strike systems; helicopters and naval systems; command, control, communications, and intelligence technologies; satellites; space exploration systems; and other classified space and defense programs.

Lockheed Martin serves the U.S.

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