Lockheed Martin (NYSE:LMT) Stock Price Down 3.1% – Here’s Why

Shares of Lockheed Martin Corporation (NYSE:LMT) were down 3.1% during mid-day trading on Thursday. The company traded as low as $575.71 and last traded at $576.7110. Approximately 1,764,089 shares changed hands during trading, an increase of 20% from the average session volume of 1,473,162 shares. The stock had previously closed at $595.04.

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 potential upside in the analyst’s view. Lockheed Martin Now Covered by Guggenheim
• Positive Sentiment: Lockheed plans to invest $420 million to expand missile operations in Arkansas, adding production capacity in a key business area. Lockheed Martin Invests $420 Million to Expand Missile Operations in Arkansas
• Neutral Sentiment: Lockheed agreed to pay $29.5 million to settle federal claims related to its diversity programs. The settlement creates legal and reputational overhang, though the payment is relatively small compared with the company’s scale. Lockheed Martin Paying $29.5M Settlement
• Negative Sentiment: Democrats’ midterm gains put the proposed $1.5 trillion defense budget in doubt, with reports suggesting it could be reduced to about $1.1 trillion. Investors are concerned that lower spending or delays could constrain future contracts and growth for defense contractors, including Lockheed. Why Lockheed Martin Stock Dropped Today

Wall Street Analyst Weigh In

Several brokerages have recently commented on LMT. Robert W. Baird set a $700.00 price objective on Lockheed Martin in a research note on Friday, July 24th. Guggenheim started coverage on Lockheed Martin in a research report on Wednesday. They set a “buy” rating and a $735.00 target price on the stock. Barclays lifted their target price on Lockheed Martin from $554.00 to $560.00 and gave the company an “equal weight” rating in a research report on Friday, October 23rd. TD Cowen decreased their price target 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, Bank of America reissued a “neutral” rating and issued a $620.00 price target on shares of Lockheed Martin in a research report on Monday, October 26th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, ten have assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat.com, Lockheed Martin presently has an average rating of “Moderate Buy” and an average price target of $647.00.

Lockheed Martin Price Performance

The stock has a market cap of $133.22 billion, a P/E ratio of 20.49, a P/E/G ratio of 1.36 and a beta of 0.07. The business has a 50 day simple moving average of $548.02 and a 200-day simple moving average of $569.72. The company has a debt-to-equity ratio of 2.04, a quick ratio of 1.10 and a current ratio of 1.26.

Lockheed Martin (NYSE:LMT) last released its earnings results on Thursday, October 22nd. The aerospace company reported $7.97 EPS for the quarter, topping analysts’ consensus estimates of $7.52 by $0.45. The company had revenue of $20.71 billion for the quarter, compared to analysts’ expectations of $20.48 billion. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The business’s revenue for the quarter was up 11.3% compared to the same quarter last year. During the same period in the previous year, the business posted $6.95 EPS. On average, sell-side analysts forecast that Lockheed Martin Corporation will post 30.66 EPS for the current year.

Lockheed Martin Increases Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Investors of record on Tuesday, December 1st will be given a dividend of $3.60 per share. The ex-dividend date is Tuesday, December 1st. This is an increase from Lockheed Martin’s previous quarterly dividend of $3.45. This represents a $14.40 annualized dividend and a yield of 2.5%. Lockheed Martin’s dividend payout ratio (DPR) is currently 51.15%.

Institutional Trading of Lockheed Martin

A number of large investors have recently added to or reduced their stakes in LMT. Burnham & Co LLC purchased a new position in Lockheed Martin in the second quarter valued at approximately $25,000. Field & Main Bank bought a new position in Lockheed Martin during the second quarter valued at $26,000. Kelleher Financial Advisors purchased a new stake in Lockheed Martin in the second quarter worth $29,000. Highland Investment Advisors LLC purchased a new stake in Lockheed Martin in the second quarter worth $29,000. Finally, IAG Wealth Partners LLC raised its stake in shares of Lockheed Martin by 4,800.0% in the first quarter. IAG Wealth Partners LLC now owns 49 shares of the aerospace company’s stock valued at $30,000 after buying an additional 48 shares during the period. Hedge funds and other institutional investors own 74.19% of the company’s stock.

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.