Lockheed Martin (NYSE:LMT) Stock Falls 2.2% – Here’s Why

Lockheed Martin Corporation (NYSE:LMT)’s stock price was down 2.2% during mid-day trading on Wednesday. The company traded as low as $498.73 and last traded at $499.1270. 1,072,336 shares changed hands during trading, a decline of 26% from the average session volume of 1,450,956 shares. The stock had previously closed at $510.12.

Key Lockheed Martin News

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

• Positive Sentiment: Analyst upgrade: Rothschild & Co. Redburn upgraded Lockheed Martin to “strong buy,” signaling increased confidence in the company’s valuation and long-term prospects. Rothschild & Co Redburn Upgrades Lockheed Martin to Strong-Buy
• Positive Sentiment: Electronic-warfare award: A $209 million Navy contract modification, with potential options that could raise the total value to approximately $1.71 billion, improves revenue visibility for Lockheed Martin’s electronic-warfare business. Can Electronic Warfare Demand Boost Lockheed Martin’s Growth?
• Positive Sentiment: Missile-defense demand: Lockheed Martin received a $245 million modification for a second-generation IRST Block II order, while Boeing received a $14.7 billion contract from Lockheed to triple PAC-3 MSE seeker production. The developments point to strong demand for missile-defense and military modernization programs. Lockheed Martin Nabs $245 Million Modification
• Positive Sentiment: Strategic growth backdrop: Rising defense budgets, missile-defense initiatives and replenishment demand related to geopolitical tensions are supporting the broader aerospace and defense sector, benefiting Lockheed Martin’s long-term order outlook. 3 Space Stocks Worth Owning This October
• Neutral Sentiment: Q3 expectations: Analysts remain focused on Lockheed Martin’s upcoming third-quarter results. Recent commentary characterizes the stock as a buying opportunity after its pullback, but investors may be waiting for earnings to confirm growth, margins and guidance. Lockheed Martin Q3 Earnings Preview
• Negative Sentiment: Relative underperformance: Lockheed Martin has lagged the broader market over recent periods and remains well below its 52-week high. That weakness can keep investors cautious despite its defense-contract pipeline and valuation arguments. Lockheed Martin Is Cheap and Lagging

Analyst Ratings Changes

LMT has been the topic of several analyst reports. Citigroup increased their target price on Lockheed Martin from $641.00 to $691.00 and gave the stock a “buy” rating in a research report on Thursday, August 13th. Robert W. Baird set a $700.00 price target on shares of Lockheed Martin in a report on Friday, July 24th. Wells Fargo & Company set a $600.00 price target on shares of Lockheed Martin in a research report on Monday, July 27th. TD Cowen dropped their price objective on shares of Lockheed Martin from $600.00 to $560.00 and set a “hold” rating on the stock in a report on Monday, July 13th. Finally, Wall Street Zen upgraded shares of Lockheed Martin from a “buy” rating to a “strong-buy” rating in a research report on Sunday, September 20th. One research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $638.21.

Lockheed Martin Trading Down 2.2%

The firm has a 50-day moving average of $552.10 and a 200 day moving average of $549.20. The company has a current ratio of 1.19, a quick ratio of 1.01 and a debt-to-equity ratio of 2.34. The stock has a market capitalization of $115.19 billion, a price-to-earnings ratio of 18.40, a PEG ratio of 1.10 and a beta of 0.09.

Lockheed Martin (NYSE:LMT) last released its quarterly earnings results on Thursday, July 23rd. The aerospace company reported $7.94 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.22 by $0.72. The company had revenue of $20.06 billion during the quarter, compared to analysts’ expectations of $19.34 billion. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%.The company’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $1.46 earnings per share. Lockheed Martin has set its FY 2026 guidance at 29.950-30.650 EPS. As a group, equities analysts predict that Lockheed Martin Corporation will post 30.44 EPS for the current fiscal year.

Lockheed Martin Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Friday, September 25th. Shareholders of record on Tuesday, September 1st were given a dividend of $3.45 per share. This represents a $13.80 dividend on an annualized basis and a dividend yield of 2.8%. The ex-dividend date was Tuesday, September 1st. Lockheed Martin’s payout ratio is 50.87%.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in LMT. Stonebridge Financial Group LLC MO increased its position in Lockheed Martin by 2.8% during the first quarter. Stonebridge Financial Group LLC MO now owns 658 shares of the aerospace company’s stock worth $397,000 after buying an additional 18 shares in the last quarter. Rooted Wealth Advisors Inc. lifted its position in shares of Lockheed Martin by 1.8% in the first quarter. Rooted Wealth Advisors Inc. now owns 1,036 shares of the aerospace company’s stock valued at $602,000 after acquiring an additional 18 shares in the last quarter. Beacon Capital Management LLC lifted its position in shares of Lockheed Martin by 4.5% in the second quarter. Beacon Capital Management LLC now owns 442 shares of the aerospace company’s stock valued at $225,000 after acquiring an additional 19 shares in the last quarter. Lee Johnson Capital Management LLC boosted its stake in shares of Lockheed Martin by 1.6% during the first quarter. Lee Johnson Capital Management LLC now owns 1,239 shares of the aerospace company’s stock valued at $749,000 after acquiring an additional 20 shares during the last quarter. Finally, Lexington Hill Partners LLC boosted its stake in shares of Lockheed Martin by 2.0% during the second quarter. Lexington Hill Partners LLC now owns 1,004 shares of the aerospace company’s stock valued at $512,000 after acquiring an additional 20 shares during the last quarter. 74.19% of the stock is currently owned by institutional investors.

About Lockheed Martin

Lockheed Martin Corporation is a global aerospace, defense and technology company headquartered in Bethesda, Maryland. The company develops and produces advanced systems for government and commercial customers, with the U.S. Department of Defense and other U.S. government agencies representing its primary customers.

Its principal activities include the design and manufacture of military aircraft, missiles, air and missile defense systems, radar and sensor technologies, naval and rotary-wing systems, satellites, space exploration systems, and cybersecurity and information technology solutions.