Lockheed Martin (NYSE:LMT) Shares Climb 2.2% – Here’s Why

Lockheed Martin Corporation (NYSE:LMT) shares shot up 2.2% during mid-day trading on Thursday. The stock traded as high as $649.00 and last traded at $643.6160. 1,956,952 shares changed hands during mid-day trading, an increase of 34% from the average daily volume of 1,464,213 shares. The stock had previously closed at $629.75.

Key Stories Impacting Lockheed Martin

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

• Positive Sentiment: The U.S. State Department approved a possible $2.1 billion Patriot missile package for Ukraine, naming Lockheed Martin as the principal contractor. The package includes 500 PAC-3 MSE interceptors, spare parts, logistics and support, and will be financed by allied and Ukrainian funds rather than direct U.S. funding. The sale could add to LMT’s missile backlog, although no delivery schedule was provided. U.S. approves $2.1 billion Patriot missile sale to Ukraine
• Positive Sentiment: Recent coverage highlights Lockheed Martin’s record $292 billion backlog, continued F-35 production at 156 aircraft annually and a 10-year F-35 agreement with the Pentagon. These developments improve long-term revenue visibility and support the case for sustained military demand. Lockheed Martin long-term investor takeaways
• Positive Sentiment: Analysts and investors are also encouraged by potentially better Department of Defense contract terms, with higher-margin Missiles and Fire Control activities expected to improve profitability and reduce development and execution risk. Lockheed Martin backlog analysis
• Neutral Sentiment: Analysts remain divided on LMT versus faster-growing defense companies such as Kratos Defense. While the backlog and F-35 progress are favorable, valuation, cash generation and uncertainty over future U.S. defense budgets remain key considerations. Kratos Defense versus Lockheed Martin analysis
• Negative Sentiment: After a roughly 27% October rally, some investors may be taking profits. Coverage also flags gradually weakening margins and warns that management’s January update on profitability and execution could determine whether the recent advance is sustainable. Lockheed Martin October rally analysis

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Weiss Ratings raised shares of Lockheed Martin from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 9th. JPMorgan Chase & Co. upped their price objective on shares of Lockheed Martin from $620.00 to $665.00 and gave the company a “neutral” rating in a research note on Monday, October 26th. Citigroup increased their target price on shares of Lockheed Martin from $691.00 to $706.00 and gave the company a “buy” rating in a report on Friday, October 23rd. Wells Fargo & Company set a $600.00 target price on shares of Lockheed Martin in a report on Monday, July 27th. Finally, Wall Street Zen cut shares of Lockheed Martin from a “strong-buy” rating to a “buy” rating in a research report on Saturday, October 17th. One research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company presently has an average rating of “Moderate Buy” and an average price target of $638.05.

Lockheed Martin Stock Down 0.9%

The stock’s fifty day moving average is $544.17 and its 200 day moving average is $568.87. 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 company has a market capitalization of $147.29 billion, a P/E ratio of 22.65, a price-to-earnings-growth ratio of 1.37 and a beta of 0.09.

Lockheed Martin (NYSE:LMT) last announced 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. Lockheed Martin had a net margin of 8.23% and a return on equity of 83.41%. The business had revenue of $20.71 billion for the quarter, compared to analyst estimates of $20.48 billion. During the same quarter last year, the firm earned $6.95 EPS. The company’s revenue was up 11.3% on a year-over-year basis. Research analysts predict that Lockheed Martin Corporation will post 30.59 EPS for the current fiscal year.

Lockheed Martin Increases Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be paid a $3.60 dividend. The ex-dividend date of this dividend is Tuesday, December 1st. This is a boost from Lockheed Martin’s previous quarterly dividend of $3.45. This represents a $14.40 annualized dividend and a dividend yield of 2.3%. Lockheed Martin’s payout ratio is 49.02%.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of LMT. Kestra Private Wealth Services LLC raised its position in Lockheed Martin by 6.6% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 47,281 shares of the aerospace company’s stock worth $24,078,000 after purchasing an additional 2,919 shares during the period. Jmac Enterprises LLC boosted its position in shares of Lockheed Martin by 42.7% during the third quarter. Jmac Enterprises LLC now owns 2,672 shares of the aerospace company’s stock valued at $1,361,000 after buying an additional 800 shares during the period. Optimist Retirement Group LLC boosted its position in shares of Lockheed Martin by 2.9% during the third quarter. Optimist Retirement Group LLC now owns 4,466 shares of the aerospace company’s stock valued at $2,274,000 after buying an additional 124 shares during the period. Covestor Ltd grew its stake in shares of Lockheed Martin by 13.5% during the third quarter. Covestor Ltd now owns 177 shares of the aerospace company’s stock valued at $90,000 after buying an additional 21 shares during the last quarter. Finally, Richardson Financial Services Inc. grew its stake in shares of Lockheed Martin by 16.0% during the third quarter. Richardson Financial Services Inc. now owns 363 shares of the aerospace company’s stock valued at $185,000 after buying an additional 50 shares during the last quarter. Hedge funds and other institutional investors 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.