Lockheed Martin (NYSE:LMT) Shares Down 6.9% – What’s Next?

Lockheed Martin Corporation (NYSE:LMT)’s stock price dropped 6.9% on Wednesday. The company traded as low as $591.12 and last traded at $594.7130. 3,044,757 shares traded hands during mid-day 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 Summary

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

• Positive Sentiment: Zacks says Lockheed Martin has gained 12% over six months, supported by a record backlog, global defense demand, major contracts and strategic acquisitions. It also describes the shares as trading at a discount to the industry, which could appeal to value-focused investors. Article: LMT Trades at a Discount to the Industry
• Positive Sentiment: Industry earnings point to ongoing demand for conventional weapons as well as drones and advanced defense systems, a supportive backdrop for defense contractors, although the article does not provide Lockheed-specific results. Article: Defense earnings reveal a more complicated rearmament boom
• Neutral Sentiment: Lockheed Martin is attracting increased attention from Zacks users, but the coverage does not identify a specific new company development driving that interest. Article: What to Know Beyond Why Lockheed Martin Is a Trending Stock
• Negative Sentiment: Defense shares faced political and budget uncertainty after Democrats took control of Congress. Reports say a proposed $1.5 trillion defense budget request may be in jeopardy, raising questions about future spending and contributing to pressure on Lockheed Martin and other contractors. Article: Defense Stocks Sank as Democrats Took Congress
• Negative Sentiment: Lockheed Martin agreed to pay $29.5 million to settle federal claims that it discriminated against white workers. The payment is a cost and may bring reputational scrutiny, though it is not presented as a change to the company’s operating outlook. Article: Lockheed Martin paying $29.5M settlement

Analyst Upgrades and Downgrades

A number of research analysts recently issued reports on LMT shares. Royal Bank Of Canada boosted their target price on shares of Lockheed Martin from $550.00 to $600.00 and gave the company a “sector perform” rating in a research report on Friday, October 23rd. JPMorgan Chase & Co. increased their price target on Lockheed Martin from $620.00 to $665.00 and gave the stock a “neutral” rating in a research report on Monday, October 26th. Citigroup lifted their price objective on Lockheed Martin from $691.00 to $706.00 and gave the company a “buy” rating in a research note on Friday, October 23rd. TD Cowen decreased their price objective on Lockheed Martin from $600.00 to $570.00 and set a “hold” rating for the company in a report on Friday, October 9th. Finally, Barclays upped their target price on Lockheed Martin from $554.00 to $560.00 and gave the stock an “equal weight” rating in a research note on Friday, October 23rd. One research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, Lockheed Martin has a consensus rating of “Moderate Buy” and an average price target of $647.00.

Lockheed Martin Trading Down 1.7%

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 company’s 50-day moving average is $548.25 and its 200 day moving average is $569.65. The company has a market cap of $130.85 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.26 and a beta of 0.07.

Lockheed Martin (NYSE:LMT) last posted its earnings results on Thursday, October 22nd. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, topping the consensus estimate 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 period in the prior year, the company posted $6.95 EPS. The company’s revenue for the quarter was up 11.3% on a year-over-year basis. Research analysts predict that Lockheed Martin Corporation will post 30.66 EPS for the current 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 2.5%. The ex-dividend date is Tuesday, December 1st. Lockheed Martin’s dividend payout ratio (DPR) is currently 49.02%.

Institutional Trading of Lockheed Martin

Several institutional investors have recently bought and sold shares of the business. Financial Freedom LLC purchased a new stake in Lockheed Martin during the third quarter worth $198,000. EagleClaw Capital Managment LLC boosted its position in shares of Lockheed Martin by 1.9% in the 3rd quarter. EagleClaw Capital Managment LLC now owns 14,398 shares of the aerospace company’s stock worth $7,332,000 after buying an additional 270 shares in the last quarter. Moors & Cabot Inc. grew its stake in Lockheed Martin by 6.3% in the 3rd quarter. Moors & Cabot Inc. now owns 8,889 shares of the aerospace company’s stock valued at $4,527,000 after acquiring an additional 529 shares during the last quarter. Valmark Advisers Inc. grew its stake in Lockheed Martin by 13.5% in the 3rd quarter. Valmark Advisers Inc. now owns 4,036 shares of the aerospace company’s stock valued at $2,056,000 after acquiring an additional 480 shares during the last quarter. Finally, Allworth Financial LP increased its holdings in Lockheed Martin by 10.2% during the 3rd quarter. Allworth Financial LP now owns 31,901 shares of the aerospace company’s stock valued at $16,252,000 after acquiring an additional 2,945 shares in the last quarter. 74.19% of the stock is owned by institutional investors and hedge funds.

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.