Lockheed Martin (NYSE:LMT) Stock Falls 1.9% - What's Next?

Key Points

• Lockheed Martin shares fell 1.9% to roughly $623, with trading volume 48% above the average session level.
• The company reported strong fundamentals, including 11.3% year-over-year revenue growth, an earnings beat, and a record $292 billion backlog. It also secured a $694 million hypersonic missile contract and raised its quarterly dividend to $3.60.
• Analyst sentiment is generally positive, with a consensus “Moderate Buy” rating and a $638.05 target price, though the stock’s elevated valuation and the need for congressional approval of the F-35 framework remain risks.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) shares traded down 1.9% during mid-day trading on Tuesday. The company traded as low as $622.70 and last traded at $623.3880. 2,166,674 shares changed hands during mid-day trading, an increase of 48% from the average session volume of 1,460,558 shares. The stock had previously closed at $635.20.

Key Lockheed Martin News

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

• Positive Sentiment: Lockheed Martin received a $694 million U.S. Air Force contract to produce its Air-Launched Rapid Response Weapon, adding a new hypersonic missile production award to its defense portfolio. Lockheed Martin to Add Air-Launched Hypersonic Missile to the American Arsenal of Freedom
• Positive Sentiment: Morgan Stanley upgraded LMT to Overweight and raised its price target to $835 from $690, citing a 10-year F-35 production and sustainment framework. The agreement is expected to reduce uncertainty around the company’s largest program and improve long-term revenue visibility. Lockheed Martin’s F-35 Deal Could Change How Wall Street Values the Stock
• Positive Sentiment: Lockheed Martin’s third-quarter results showed approximately 11% year-over-year revenue growth, an earnings beat and a record $292 billion backlog. Strong F-35 and missile demand, including a major PAC-3 award, supports expectations for sustained growth. Lockheed Martin Q3 2026: Shattering 9-Month Expectations With a Record $292B Backlog
• Positive Sentiment: Zacks upgraded LMT to Rank #2, or Buy, reflecting improved expectations for the company’s earnings prospects. All You Need to Know About Lockheed Rating Upgrade to Buy
• Neutral Sentiment: The F-35 framework still requires congressional authorization and appropriations. Any delay could weaken the expected reduction in program risk.
• Negative Sentiment: After its recent advance, LMT’s valuation is above its historical average, which may encourage profit-taking and make additional gains more dependent on contract execution and earnings growth.

Wall Street Analysts Forecast Growth

LMT has been the topic of a number of research analyst reports. Jefferies Financial Group reissued a "hold" rating and set a $615.00 price objective on shares of Lockheed Martin in a report on Sunday. JPMorgan Chase & Co. increased their target price on shares of Lockheed Martin from $620.00 to $665.00 and gave the company a "neutral" rating in a research report on Monday. Wall Street Zen lowered shares of Lockheed Martin from a "strong-buy" rating to a "buy" rating in a research note on Saturday, October 17th. Bank of America restated a "neutral" rating and issued a $620.00 price objective on shares of Lockheed Martin in a research note on Monday. Finally, Citigroup raised their price objective on Lockheed Martin from $691.00 to $706.00 and gave the stock a "buy" rating in a report on Friday. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Lockheed Martin currently has an average rating of "Moderate Buy" and a consensus target price of $638.05.

Lockheed Martin Price Performance

The company's 50-day simple moving average is $540.20 and its 200-day simple moving average is $566.17. 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 company has a market capitalization of $143.87 billion, a PE ratio of 22.15, a P/E/G ratio of 1.29 and a beta of 0.09.

Lockheed Martin (NYSE:LMT - Get Free Report) last released its quarterly earnings results 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. The firm had revenue of $20.71 billion for the quarter, compared to analyst estimates of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The business's revenue was up 11.3% on a year-over-year basis. During the same quarter last year, the company posted $6.95 earnings per share. As a group, sell-side analysts anticipate that Lockheed Martin Corporation will post 30.51 earnings per share for the current year.

Lockheed Martin Increases Dividend

The company also recently disclosed 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 positive change from Lockheed Martin's previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. This represents a $14.40 dividend on an annualized basis and a yield of 2.3%. Lockheed Martin's payout ratio is 51.15%.

Hedge Funds Weigh In On Lockheed Martin

Several institutional investors have recently bought and sold shares of LMT. Cahaba Wealth Management Inc. boosted its holdings in Lockheed Martin by 3.2% in the third quarter. Cahaba Wealth Management Inc. now owns 542 shares of the aerospace company's stock valued at $276,000 after purchasing an additional 17 shares during the period. Beacon Capital Management LLC increased its holdings in Lockheed Martin by 4.5% during the 2nd quarter. Beacon Capital Management LLC now owns 442 shares of the aerospace company's stock worth $225,000 after purchasing an additional 19 shares during the period. YANKCOM Partnership increased its holdings in Lockheed Martin by 0.7% during the 3rd quarter. YANKCOM Partnership now owns 2,575 shares of the aerospace company's stock worth $1,311,000 after purchasing an additional 19 shares during the period. Capital Square LLC increased its holdings in Lockheed Martin by 1.1% during the 3rd quarter. Capital Square LLC now owns 1,793 shares of the aerospace company's stock worth $913,000 after purchasing an additional 19 shares during the period. Finally, Crossmark Global Holdings Inc. raised its position in Lockheed Martin by 0.6% in the 3rd quarter. Crossmark Global Holdings Inc. now owns 3,239 shares of the aerospace company's stock valued at $1,649,000 after purchasing an additional 19 shares in the last quarter. 74.19% of the stock is owned by institutional investors and hedge funds.

About Lockheed Martin

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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