Lockheed Martin (NYSE:LMT) Stock Price Down 2.5% - Time to Sell?

Key Points

• Lockheed Martin shares fell 2.5% to approximately $522, pressured by broad defense-sector selling following reports that tensions around the Strait of Hormuz may ease.
• The company received a potential $1.2 billion U.S. Army contract for Precision Strike Missile production, while F-35 adoption by 20 nations supports longer-term international growth.
• Analysts’ consensus rating remains “Hold”, with an average price target of $637.56. Lockheed also reported earnings and revenue above estimates and is paying a quarterly dividend of $3.45 per share, though risks include uncertain stealth-drone development spending.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report) traded down 2.5% during trading on Tuesday . The stock traded as low as $515.60 and last traded at $522.0740. 1,412,585 shares traded hands during trading, a decline of 4% from the average session volume of 1,475,520 shares. The stock had previously closed at $535.40.

Trending Headlines about Lockheed Martin

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

• Positive Sentiment: The U.S. Army awarded Lockheed Martin an indefinite-delivery, indefinite-quantity contract worth up to $1.2 billion for Precision Strike Missile (PrSM) Increment 2 production. A recent test demonstrated the missile’s ability to engage moving maritime targets, expanding its potential battlefield applications and supporting long-term missile-revenue growth. Lockheed wins US Army missile contract worth up to $1.2 billion
• Positive Sentiment: Germany’s presentation of its first F-35A Lightning II highlights continued international adoption of Lockheed Martin’s fighter program, which has now been selected by 20 nations. Broader global demand strengthens the company’s long-term production, services and sustainment opportunity. How Does This F-35A Rollout Strengthen NATO Deterrence for Lockheed Martin
• Positive Sentiment: Lockheed Martin is scheduled to pay its quarterly dividend this week. The payout provides a near-term shareholder-return catalyst and reinforces the stock’s appeal to income-oriented investors, although the dividend alone is unlikely to offset broader sector selling. Lockheed Martin to pay dividends this week
• Neutral Sentiment: Lockheed has also been advancing the classified AIM-260 air-to-air missile for integration with the F-22 and F-35. The program could benefit from rising demand for advanced weapons, but limited public details make its near-term financial impact difficult to assess. Lockheed Martin Fast-Tracks Secret Missile as Global Weapons Demand Rises
• Negative Sentiment: A reported potential reopening of the Strait of Hormuz has pressured aerospace and defense shares broadly by reducing perceived geopolitical tension. LMT and other major defense contractors are therefore facing sector-wide selling despite company-specific contract wins. Defense Stocks Fall While Oil Slides on Hormuz Reopening Report
• Negative Sentiment: Investors are also evaluating risks around Lockheed’s stealth-drone development, with reports that the Air Force is not seeking the aircraft and the company is building prototypes without a firm customer commitment. That raises concerns about development spending and potential returns.

Analysts Set New Price Targets

A number of equities research analysts have recently weighed in on LMT shares. Sanford C. Bernstein restated a "market perform" rating on shares of Lockheed Martin in a report on Friday, May 29th. Wall Street Zen upgraded Lockheed Martin from a "buy" rating to a "strong-buy" rating in a report on Sunday. Citigroup raised their target price on Lockheed Martin from $641.00 to $691.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. Weiss Ratings upgraded Lockheed Martin from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Thursday, August 13th. Finally, Jefferies Financial Group reaffirmed a "hold" rating on shares of Lockheed Martin in a report on Wednesday, September 2nd. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, Lockheed Martin presently has an average rating of "Hold" and a consensus price target of $637.56.

Lockheed Martin Stock Performance

The firm has a fifty day simple moving average of $556.84 and a 200-day simple moving average of $559.90. The company has a market cap of $120.49 billion, a PE ratio of 19.24, a price-to-earnings-growth ratio of 1.16 and a beta of 0.10. The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 2.34.

Lockheed Martin (NYSE:LMT - Get Free Report) last posted its earnings results on Thursday, July 23rd. The aerospace company reported $7.94 earnings per share for the quarter, beating the consensus estimate of $7.22 by $0.72. The business had revenue of $20.06 billion during the quarter, compared to the consensus estimate of $19.34 billion. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%.The business's quarterly revenue was up 10.5% on a year-over-year basis. During the same period in the previous year, the business earned $1.46 EPS. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS. On average, research analysts forecast that Lockheed Martin Corporation will post 30.44 EPS for the current fiscal year.

Lockheed Martin Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st will be paid a $3.45 dividend. The ex-dividend date is Tuesday, September 1st. This represents a $13.80 dividend on an annualized basis and a yield of 2.6%. Lockheed Martin's payout ratio is currently 50.87%.

Hedge Funds Weigh In On Lockheed Martin

A number of hedge funds have recently modified their holdings of LMT. State Street Corp grew its position in Lockheed Martin by 1.3% during the 2nd quarter. State Street Corp now owns 32,975,170 shares of the aerospace company's stock worth $16,799,530,000 after purchasing an additional 419,582 shares during the last quarter. BlackRock Inc. acquired a new stake in shares of Lockheed Martin during the second quarter worth about $9,617,574,000. Corient Private Wealth LP acquired a new stake in shares of Lockheed Martin during the second quarter worth about $101,960,000. Franklin Resources Inc. grew its holdings in shares of Lockheed Martin by 0.6% during the fourth quarter. Franklin Resources Inc. now owns 1,670,284 shares of the aerospace company's stock worth $807,866,000 after buying an additional 10,349 shares during the last quarter. Finally, Deutsche Bank AG grew its holdings in shares of Lockheed Martin by 7.4% during the fourth quarter. Deutsche Bank AG now owns 1,440,840 shares of the aerospace company's stock worth $696,891,000 after buying an additional 99,403 shares during the last quarter. 74.19% of the stock is currently owned by hedge funds and other institutional investors.

About Lockheed Martin

Lockheed Martin Corporation is a global aerospace, defense and technology company that develops and produces systems for government and commercial customers, with the U.S. Department of Defense serving as its largest customer. Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

The company's products and services include military aircraft such as the F-35 Lightning II, F-16 and C-130; air and missile defense systems; precision weapons; helicopters and maritime systems; radar, sensors and command-and-control technologies; satellites; space exploration systems; and missile-warning and strategic defense capabilities.

Lockheed Martin was created in 1995 through the merger of Lockheed Corporation and Martin Marietta.

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