Lockheed Martin (NYSE:LMT) Shares Down 6.9% – Time to Sell?

Shares of Lockheed Martin Corporation (NYSE:LMT) fell 6.9% on Wednesday. The company traded as low as $591.12 and last traded at $594.7130. 3,044,757 shares changed hands during trading, an increase of 107% from the average daily volume of 1,471,365 shares. The stock had previously closed at $639.00.

Lockheed Martin News Roundup

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

• Positive Sentiment: Guggenheim initiated coverage with a Buy rating and a $735 price target, signaling confidence in the stock’s prospects. Guggenheim coverage
• Positive Sentiment: Lockheed’s missile business may benefit from sustained demand: an InvestorPlace analysis highlighted a multiyear PAC-3 contract valued at about $58.6 billion and a planned production ramp. It also noted execution risks, including supplier capacity and cost control. InvestorPlace analysis
• Positive Sentiment: The company plans to invest $420 million to expand its Camden, Arkansas, operations, with 650 jobs expected over five years—an investment in capacity that could support future defense production. Camden expansion
• Negative Sentiment: Democratic midterm wins put Democrats in control of both chambers of Congress, prompting concern that a proposed $1.5 trillion defense budget request could be reduced to $1.1 trillion. The potential funding restraint weighed on defense stocks, including LMT. Election and defense spending concerns
• Negative Sentiment: Lockheed agreed to pay $29.5 million to settle a federal probe over allegations related to its diversity efforts. The settlement may raise compliance and reputational concerns for a major government contractor. Federal probe settlement

Wall Street Analyst Weigh In

Several brokerages recently commented on LMT. Wells Fargo & Company increased their price objective on shares of Lockheed Martin from $600.00 to $700.00 and gave the company an “equal weight” rating in a research report on Monday. Robert W. Baird set a $700.00 target price on shares of Lockheed Martin in a research report on Friday, July 24th. TD Cowen cut their price target on shares of Lockheed Martin from $600.00 to $570.00 and set a “hold” rating on the stock in a research note on Friday, October 9th. Wall Street Zen lowered shares of Lockheed Martin from a “strong-buy” rating to a “buy” rating in a research note on Saturday, October 17th. Finally, Citigroup raised their price target on shares of Lockheed Martin from $691.00 to $706.00 and gave the stock a “buy” rating in a report on Friday, October 23rd. One investment analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Moderate Buy” and an average price target of $647.00.

Lockheed Martin Stock Performance

The company has a quick ratio of 1.10, a current ratio of 1.26 and a debt-to-equity ratio of 2.04. The stock has a market capitalization of $137.38 billion, a PE ratio of 21.13, a PEG ratio of 1.36 and a beta of 0.07. The firm has a 50 day moving average price of $547.27 and a 200-day moving average price of $569.64.

Lockheed Martin (NYSE:LMT) last issued its earnings results on Thursday, October 22nd. The aerospace company reported $7.97 EPS for the quarter, beating analysts’ consensus estimates of $7.52 by $0.45. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The firm had revenue of $20.71 billion for the quarter, compared to analyst estimates of $20.48 billion. During the same quarter in the prior year, the firm earned $6.95 earnings per share. Lockheed Martin’s revenue for the quarter was up 11.3% on a year-over-year basis. Research analysts expect that Lockheed Martin Corporation will post 30.66 EPS for the current fiscal year.

Lockheed Martin Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Shareholders of record on Tuesday, December 1st will be given a dividend of $3.60 per share. This is an increase from Lockheed Martin’s previous quarterly dividend of $3.45. This represents a $14.40 dividend on an annualized basis and a yield of 2.4%. The ex-dividend date is Tuesday, December 1st. Lockheed Martin’s dividend payout ratio (DPR) is currently 49.02%.

Institutional Trading of Lockheed Martin

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Texas Bank & Trust Co boosted its holdings in shares of Lockheed Martin by 3.4% in the third quarter. Texas Bank & Trust Co now owns 2,723 shares of the aerospace company’s stock valued at $1,387,000 after acquiring an additional 90 shares during the period. Gryphon Financial Partners LLC increased its holdings in shares of Lockheed Martin by 1.4% in the 3rd quarter. Gryphon Financial Partners LLC now owns 3,714 shares of the aerospace company’s stock valued at $1,891,000 after acquiring an additional 51 shares during the period. AlphaCore Capital LLC increased its holdings in shares of Lockheed Martin by 9.8% in the 3rd quarter. AlphaCore Capital LLC now owns 6,082 shares of the aerospace company’s stock valued at $3,097,000 after acquiring an additional 544 shares during the period. Allspring Global Investments Holdings LLC increased its holdings in shares of Lockheed Martin by 11.9% in the 3rd quarter. Allspring Global Investments Holdings LLC now owns 46,903 shares of the aerospace company’s stock valued at $23,710,000 after acquiring an additional 4,981 shares during the period. Finally, StoneRidge PMG Advisors LLC purchased a new stake in Lockheed Martin in the 3rd quarter valued at $773,000. 74.19% of the stock is currently owned by hedge funds and other institutional investors.

About Lockheed Martin

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.