Lockheed Martin Shares Decline by 2.2% - What to Know

Lockheed Martin Co. (NYSE:LMT) experienced a decrease in its share price of 2.2% during trading on Tuesday. The stock was seen trading as low as $466.54 and was last quoted at $468.70. In total, approximately 479,333 shares changed hands during the mid-day trading session, reflecting a significant decline of 57% compared to the average daily volume of 1,116,014 shares. The previous close was at $479.17.

Analyst Expectations for Lockheed Martin

Several research firms have recently provided updates regarding Lockheed Martin's stock. Truist Financial began coverage on January 14th, issuing a "buy" rating with a price target of $579.00. Citigroup also adjusted their price target, reducing it from $700.00 to $600.00, while maintaining a "buy" rating as of January 21st. Similarly, JPMorgan Chase & Co. lowered their target from $540.00 to $535.00, but kept an "overweight" rating. Wells Fargo reaffirmed an "equal weight" rating, while Barclays decreased their target from $565.00 to $515.00 on January 6th. Currently, one analyst has rated the stock as a sell, six as hold, eight as buy, and one as strong buy. The consensus rating from analysts categorizes the stock as a "Moderate Buy" with an average price target of $554.20.

Stock Performance Metrics

Lockheed Martin has a market capitalization of approximately $110.14 billion. Its price-to-earnings (PE) ratio stands at 21.02, while the price-to-earnings growth (PEG) ratio is 2.07. The stock has a beta value of 0.43, indicating less volatility compared to the market. The company’s 50-day simple moving average is at $461.97, with the 200-day simple moving average at $519.79. Lockheed Martin's current ratio is 1.13, its quick ratio is 0.95, and it has a notable debt-to-equity ratio of 3.10.

Quarterly Earnings Announcement

In its last quarterly earnings report on January 28th, Lockheed Martin reported earnings per share (EPS) of $7.67, exceeding analysts' expectations of $6.58 by $1.09. The company recorded a return on equity of 101.47% and reported a net margin of 7.51%. Analysts are projecting an EPS of 27.15 for the current fiscal year.

Dividend Information

Recently, Lockheed Martin announced a quarterly dividend to be paid on March 28th. Shareholders who are on record as of March 3rd will receive a dividend of $3.30 per share, equating to an annualized amount of $13.20 and yielding 2.82%. The company’s current payout ratio stands at 59.30%.

Insider Trading Activity

Relatedly, VP Harry Edward Paul III sold 707 shares of Lockheed Martin stock on February 26th at an average price of $442.61, totaling approximately $312,925.27. After this sale, he retains 2,278 shares valued around $1,008,265.58, marking a 23.69% decrease in ownership. Another insider, Robert M. Lightfoot, Jr., sold 3,213 shares on the same day for an average price of $442.42, a total of $1,421,495.46. He currently holds 2,000 shares valued at $884,840, representing a 61.63% reduction in his stake. In total, insiders sold 7,133 shares worth $3,155,916 in the most recent quarter, with insider ownership at 0.17% of the company's shares.

Institutional Investor Insights

Numerous hedge funds have recently adjusted their positions in Lockheed Martin. Charles Schwab Investment Management Inc. increased its stake by 17.9%, now holding 7,471,071 shares valued at $3.63 billion. Geode Capital Management LLC boosted its stake by 1.2%, owning 4,887,242 shares worth $2.37 billion. FMR LLC increased its holdings by 6.6%, now controlling 3,389,025 shares valued at approximately $1.98 billion. Meanwhile, Wellington Management Group LLP raised their stake by 8.5%, holding 3,074,855 shares currently valued at around $1.80 billion. Finally, Northern Trust Corp increased its position by 6.3%. To date, hedge funds and institutional investors own 74.19% of Lockheed Martin stock.

Company Overview

Lockheed Martin Corporation is a global leader in security and aerospace, involved in the research, design, development, manufacturing, integration, and support of various technological systems, products, and services. The company operates across multiple sectors, including Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, as well as Space.

Conclusion

The recent downturn in Lockheed Martin's stock price may raise questions among investors about the company's performance and future outlook. With a strong market position and ongoing projects, it remains a significant player in the aerospace defense sector.

Lockheed, Martin, Stocks