Lockheed Martin (NYSE:LMT) Stock Price Up 1.2% - Still a Buy?

Key Points

• Lockheed Martin shares rose 1.2% to approximately $630.42, while analysts maintain a “Moderate Buy” consensus and an average price target of $638.05.
• The company delivered better-than-expected quarterly results, with EPS of $7.97 and revenue of $20.71 billion, up 11.3% year over year. A $694 million hypersonic missile contract and a long-term F-35 framework further support its growth outlook.
• Lockheed Martin increased its quarterly dividend to $3.60 per share, but investors remain cautious about F-35 contract issues, a potential pension charge, negative free cash flow and uncertainty over future defense spending after the U.S. midterm elections.

Lockheed Martin Corporation (NYSE:LMT - Get Free Report)'s stock price rose 1.2% during mid-day trading on Wednesday. The company traded as high as $635.96 and last traded at $630.4240. Approximately 1,567,103 shares traded hands during trading, an increase of 7% from the average daily volume of 1,459,453 shares. The stock had previously closed at $622.99.

Trending Headlines about Lockheed Martin

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

• Positive Sentiment: Morgan Stanley upgraded Lockheed Martin to Overweight from Equal Weight and raised its price target to $835. The firm said a 10-year F-35 framework with the Pentagon removes significant program risk and could provide more than 30% upside. Lockheed Martin's F-35 Deal Could Change How Wall Street Values the Stock
• Positive Sentiment: The U.S. Air Force awarded LMT a $694 million contract to produce its Air-Launched Rapid Response Weapon hypersonic missile. The award reinforces Lockheed Martin’s position in a strategically important, potentially expanding defense category. Lockheed Martin to Add Air-Launched Hypersonic Missile to the American Arsenal of Freedom
• Positive Sentiment: Lockheed Martin reported quarterly EPS and revenue above consensus estimates, with revenue up 11.3% year over year. Its large backlog and continued dividend growth add support for the company’s earnings and shareholder-return outlook.
• Positive Sentiment: A successful U.S. Army test demonstrated Lockheed Martin’s ability to redirect an in-flight GMLRS rocket, advancing its Joint Fires capabilities and highlighting ongoing innovation in precision weapons. Lockheed Martin Advances Joint Fires Capability
• Neutral Sentiment: A ResearchAndMarkets report projects the global ground-control-station market will grow at a 15.1% compound annual rate to $18.3 billion by 2032, potentially benefiting LMT through demand for unmanned-systems and mission-control technologies, though the report does not announce a specific contract. Ground Control Station Global Strategic Business Report
• Negative Sentiment: Investors remain concerned about a troubled F-35 contract, a potential billion-dollar pension charge and a quarter of negative free cash flow. These issues could limit the benefit of the bullish backlog and dividend story. Lockheed Martin Pays $13.80 a Share in Dividends Every Year
• Negative Sentiment: The Nov. 3 U.S. midterm elections create uncertainty around future defense spending, tax incentives and congressional project approvals. A less supportive Congress could affect the pace or size of future awards. The Election Trade Isn't Just About Who Wins

Analyst Upgrades and Downgrades

LMT has been the topic of a number of recent research reports. UBS Group raised their price objective on Lockheed Martin from $653.00 to $692.00 and gave the stock a "buy" rating in a research note on Friday, October 23rd. TD Cowen cut their target price on Lockheed Martin from $600.00 to $570.00 and set a "hold" rating for the company in a research report on Friday, October 9th. Barclays increased their target price on Lockheed Martin from $554.00 to $560.00 and gave the stock an "equal weight" rating in a report on Friday, October 23rd. 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 report on Wednesday, October 14th. Finally, Citigroup boosted their price target on Lockheed Martin from $691.00 to $706.00 and gave the company a "buy" rating in a research note on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $638.05.

Lockheed Martin Stock Up 1.2%

The firm has a 50 day moving average of $541.33 and a two-hundred day moving average of $567.38. The firm has a market capitalization of $145.63 billion, a price-to-earnings ratio of 22.40, a price-to-earnings-growth ratio of 1.29 and a beta of 0.09. The company has a quick ratio of 1.10, a current ratio of 1.26 and a debt-to-equity ratio of 2.04.

Lockheed Martin (NYSE:LMT - Get Free Report) last issued its earnings results on Thursday, October 22nd. The aerospace company reported $7.97 EPS for the quarter, topping the consensus estimate of $7.52 by $0.45. The firm had revenue of $20.71 billion during the quarter, compared to the consensus estimate of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The business's quarterly revenue was up 11.3% on a year-over-year basis. During the same quarter in the previous year, the firm earned $6.95 earnings per share. As a group, sell-side analysts anticipate that Lockheed Martin Corporation will post 30.55 EPS for the current fiscal year.

Lockheed Martin Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders 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 dividend yield of 2.3%. This is a boost from Lockheed Martin's previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. Lockheed Martin's dividend payout ratio (DPR) is currently 49.02%.

Institutional Investors Weigh In On Lockheed Martin

Hedge funds have recently modified their holdings of the company. BlackRock Inc. acquired a new position in shares of Lockheed Martin in the second quarter valued at approximately $9,617,574,000. Corient Private Wealth LP bought a new position in Lockheed Martin in the 2nd quarter valued at approximately $101,960,000. Bank of New York Mellon Corp acquired a new stake in Lockheed Martin during the 2nd quarter worth approximately $645,258,000. Legal & General Group Plc acquired a new stake in Lockheed Martin during the 2nd quarter worth approximately $497,469,000. Finally, Papamarkou Wellner Asset Management inc. grew its holdings in Lockheed Martin by 20,302.9% during the 2nd quarter. Papamarkou Wellner Asset Management inc. now owns 627,798 shares of the aerospace company's stock worth $319,838,000 after acquiring an additional 624,721 shares during the last quarter. Institutional investors and hedge funds own 74.19% of the company's stock.

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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