Lockheed Martin (NYSE:LMT) Stock Falls 1.1% - Should You Sell?

Key Points

• Lockheed Martin shares fell 1.1% to about $603.53, with trading volume 32% below the average session volume.
• Analysts’ consensus rating is Moderate Buy, with an average price target of $647; recent targets include $706 from Citigroup and $692 from UBS.
• The company beat quarterly estimates, reporting EPS of $7.97 and revenue of $20.71 billion, while raising its quarterly dividend from $3.45 to $3.60 per share.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) shares dropped 1.1% on Thursday. The company traded as low as $600.56 and last traded at $603.5270. 989,909 shares changed hands during mid-day trading, a decline of 32% from the average session volume of 1,465,361 shares. The stock had previously closed at $610.05.

Analyst Upgrades and Downgrades

Several equities analysts have issued reports on the company. Jefferies Financial Group reaffirmed a "hold" rating and set a $615.00 price objective on shares of Lockheed Martin in a report on Sunday, October 25th. Rothschild & Co Redburn began coverage on Lockheed Martin in a report on Tuesday, October 6th. They issued a "buy" rating and a $650.00 target price for the company. Citigroup upped their target price on Lockheed Martin from $691.00 to $706.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. UBS Group upped their target price on Lockheed Martin from $653.00 to $692.00 and gave the company a "buy" rating in a research report on Friday, October 23rd. Finally, Vertical Research upgraded Lockheed Martin from a "hold" rating to a "buy" rating and set a $600.00 price target on the stock in a research note on Wednesday, October 14th. One analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus price target of $647.00.

Lockheed Martin Stock Performance

The stock has a market cap of $139.42 billion, a PE ratio of 21.44, a P/E/G ratio of 1.28 and a beta of 0.07. The firm's 50-day moving average is $550.90 and its 200 day moving average is $569.81. The company has a debt-to-equity ratio of 2.04, a quick ratio of 1.10 and a current ratio of 1.26.

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 the consensus estimate of $7.52 by $0.45. The company had revenue of $20.71 billion for the quarter, compared to the consensus estimate of $20.48 billion. Lockheed Martin had a net margin of 8.23% and a return on equity of 83.41%. Lockheed Martin's revenue for the quarter was up 11.3% on a year-over-year basis. During the same period last year, the firm posted $6.95 EPS. As a group, research analysts anticipate that Lockheed Martin Corporation will post 30.66 EPS for the current year.

Lockheed Martin Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be given a $3.60 dividend. This is a boost from Lockheed Martin's previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. This represents a $14.40 annualized dividend and a yield of 2.4%. Lockheed Martin's payout ratio is presently 49.02%.

Institutional Trading of Lockheed Martin

Hedge funds have recently added to or reduced their stakes in the stock. Meeder Advisory Services Inc. boosted its holdings in Lockheed Martin by 2.6% in the 3rd quarter. Meeder Advisory Services Inc. now owns 7,166 shares of the aerospace company's stock valued at $3,649,000 after purchasing an additional 183 shares in the last quarter. Benjamin Edwards Inc. raised its stake in shares of Lockheed Martin by 4.5% during the 3rd quarter. Benjamin Edwards Inc. now owns 39,412 shares of the aerospace company's stock worth $20,087,000 after buying an additional 1,689 shares in the last quarter. DiPaolo Financial Group Inc. purchased a new position in shares of Lockheed Martin during the 3rd quarter worth approximately $75,000. Texas Yale Capital Corp. lifted its holdings in shares of Lockheed Martin by 1.9% in the 3rd quarter. Texas Yale Capital Corp. now owns 2,644 shares of the aerospace company's stock valued at $1,347,000 after buying an additional 50 shares during the period. Finally, Fort Sheridan Advisors LLC lifted its holdings in shares of Lockheed Martin by 2.3% in the 3rd quarter. Fort Sheridan Advisors LLC now owns 7,004 shares of the aerospace company's stock valued at $3,567,000 after buying an additional 160 shares during the period. 74.19% of the stock is owned by institutional investors and hedge funds.

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.

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