Lockheed Martin (NYSE:LMT) Stock Price Crosses Below 200-Day Moving Average - What's Next?

Key Points

• Lockheed Martin shares fell below their 200-day moving average, trading as low as $561.85 versus the average of $569.65, and were last quoted at $566.43.
• Analysts maintain a Moderate Buy consensus, with an average price target of $647; recent targets include $692 from UBS and $735 from Guggenheim.
• The company beat quarterly earnings and revenue estimates, with revenue up 11.3% year over year, and raised its quarterly dividend from $3.45 to $3.60 per share.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report)'s stock price crossed below its two hundred day moving average during trading on Friday. The stock has a two hundred day moving average of $569.65 and traded as low as $561.85. Lockheed Martin shares last traded at $566.4310, with a volume of 1,387,287 shares changing hands.

More Lockheed Martin News

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

• Positive Sentiment: Zacks says Lockheed Martin has gained 12% over six months, supported by a record backlog, global defense demand, major contracts and strategic acquisitions. It also describes the shares as trading at a discount to the industry, which could appeal to value-focused investors. Article: LMT Trades at a Discount to the Industry
• Positive Sentiment: Industry earnings point to ongoing demand for conventional weapons as well as drones and advanced defense systems, a supportive backdrop for defense contractors, although the article does not provide Lockheed-specific results. Article: Defense earnings reveal a more complicated rearmament boom
• Neutral Sentiment: Lockheed Martin is attracting increased attention from Zacks users, but the coverage does not identify a specific new company development driving that interest. Article: What to Know Beyond Why Lockheed Martin Is a Trending Stock
• Negative Sentiment: Defense shares faced political and budget uncertainty after Democrats took control of Congress. Reports say a proposed $1.5 trillion defense budget request may be in jeopardy, raising questions about future spending and contributing to pressure on Lockheed Martin and other contractors. Article: Defense Stocks Sank as Democrats Took Congress
• Negative Sentiment: Lockheed Martin agreed to pay $29.5 million to settle federal claims that it discriminated against white workers. The payment is a cost and may bring reputational scrutiny, though it is not presented as a change to the company’s operating outlook. Article: Lockheed Martin paying $29.5M settlement

Analysts Set New Price Targets

LMT has been the topic of a number of research reports. Guggenheim assumed coverage on shares of Lockheed Martin in a research report on Wednesday. They set a "buy" rating and a $735.00 target price on the stock. UBS Group raised their price objective on Lockheed Martin from $653.00 to $692.00 and gave the company a "buy" rating in a research note on Friday, October 23rd. Vertical Research raised shares of 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. Royal Bank Of Canada boosted their target price on Lockheed Martin from $550.00 to $600.00 and gave the stock a "sector perform" rating in a research report on Friday, October 23rd. Finally, Jefferies Financial Group reaffirmed a "hold" rating and set a $615.00 target price on shares of Lockheed Martin in a research note on Sunday, October 25th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, the stock has a consensus rating of "Moderate Buy" and an average target price of $647.00.

Lockheed Martin Stock Down 1.7%

The firm has a 50-day moving average of $548.25 and a 200 day moving average of $569.65. The company has a current ratio of 1.26, a quick ratio of 1.10 and a debt-to-equity ratio of 2.04. The stock has a market capitalization of $130.85 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.36 and a beta of 0.07.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its 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 analysts' expectations of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. During the same quarter last year, the business earned $6.95 earnings per share. The company's revenue was up 11.3% compared to the same quarter last year. On average, sell-side analysts anticipate that Lockheed Martin Corporation will post 30.66 earnings per share for the current year.

Lockheed Martin Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 1st will be paid a $3.60 dividend. This represents a $14.40 annualized dividend and a dividend yield of 2.5%. The ex-dividend date of this dividend is Tuesday, December 1st. This is a positive change from Lockheed Martin's previous quarterly dividend of $3.45. Lockheed Martin's dividend payout ratio is 49.02%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently added to or reduced their stakes in LMT. BlackRock Inc. bought a new position in shares of Lockheed Martin in the second quarter worth $9,617,574,000. Corient Private Wealth LP bought a new position in Lockheed Martin in the second quarter valued at about $101,960,000. Bank of New York Mellon Corp acquired a new position in Lockheed Martin during the 2nd quarter worth approximately $645,258,000. Legal & General Group Plc bought a new position in Lockheed Martin during the second quarter worth about $497,469,000. Finally, Sanders Capital LLC lifted its stake in Lockheed Martin by 44.8% in the third quarter. Sanders Capital LLC now owns 3,030,638 shares of the aerospace company's stock worth $1,543,352,000 after purchasing an additional 937,105 shares during the last quarter. 74.19% of the stock is currently 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.

Lockheed Martin serves the U.S.

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