Lockheed Martin Shares Decline by 2.2% - Here's What Happened

Lockheed Martin Co. (NYSE:LMT) experienced a share price decrease of 2.2% during trading on Tuesday. The stock reached a low of $466.54 and was last seen trading at $468.70. During mid-day trading, roughly 479,333 shares exchanged hands, indicating a significant decline of 57% compared to the average daily volume of 1,116,014 shares. The previous closing price for the stock was $479.17.

Market Analysis and Ratings

Wall Street Analysts Forecast Growth

Several research firms have provided insights into Lockheed Martin's stock performance recently. Truist Financial initiated coverage of Lockheed Martin by assigning a "buy" rating and a price target of $579.00. Citigroup also revised their target price, lowering it from $700.00 to $600.00 while maintaining a "buy" rating. Meanwhile, JPMorgan Chase & Co. adjusted their price target from $540.00 to $535.00 and retained an "overweight" rating for the stock. Additionally, Wells Fargo reaffirmed an "equal weight" rating, and Barclays reduced their target price from $565.00 to $515.00, keeping an "equal weight" rating as well. Overall, the stock has faced ratings from analysts, with one sell rating, six hold ratings, eight buy ratings, and one strong buy rating. The current consensus rating on Lockheed Martin is a "Moderate Buy," with an average price target of $554.20.

Lockheed Martin Price Performance

The stock possesses a market capitalization of $110.14 billion and presents a PE ratio of 21.02, alongside a PEG ratio of 2.07 and a beta of 0.43. Lockheed Martin's 50-day simple moving average stands at $461.97, while its 200-day simple moving average is recorded at $519.79. The company reports a current ratio of 1.13, a quick ratio of 0.95, and a debt-to-equity ratio of 3.10.

Earnings Announcement and Dividend Declaration

On January 28, Lockheed Martin released its quarterly earnings report, announcing an EPS of $7.67, surpassing analysts' expectations of $6.58 by a margin of $1.09. The company's return on equity reached 101.47%, accompanied by a net margin of 7.51%. Analysts forecast that Lockheed Martin will achieve earnings per share of 27.15 for the current year.

Moreover, Lockheed Martin has disclosed a quarterly dividend, scheduled for payment on March 28 to shareholders who are on record by March 3. Each stockholder will receive a dividend of $3.30 per share, translating to an annualized dividend of $13.20, yielding a percentage of 2.82%. The current payout ratio for Lockheed Martin stands at 59.30%. 

Insider Transactions

In a recent insider trading event, VP Harry Edward Paul III sold 707 shares of Lockheed Martin on February 26 at an average price of $442.61, totaling approximately $312,925.27. This transaction led to a 23.69% reduction in the VP's ownership, leaving him with approximately 2,278 shares valued at $1,008,265.58. Another insider, Robert M. Lightfoot, Jr., sold 3,213 shares on the same day for an average price of $442.42, resulting in a total of $1,421,495.46. Following this sale, Lightfoot, Jr. now directly owns 2,000 shares, worth about $884,840. In total, over the last quarter, insiders have sold 7,133 shares valued at approximately $3,155,916, representing 0.17% of the company's stock owned by insiders.

Institutional Investor Activity

Several hedge funds have modified their stakes in Lockheed Martin recently. Charles Schwab Investment Management boosted its holdings by 17.9% in the fourth quarter, now owning 7,471,071 shares worth $3,630,492,000 after purchasing an additional 1,132,461 shares. Geode Capital Management increased their stake by 1.2%, owning 4,887,242 shares valued at $2,374,557,000. FMR LLC grew its position by 6.6%, owning 3,389,025 shares worth $1,981,088,000, and Wellington Management Group increased their stake by 8.5%. Northern Trust Corp also raised its holdings by 6.3%, owning 2,260,910 shares valued at $1,098,667,000. Currently, 74.19% of Lockheed Martin's stock is held by hedge funds and institutional investors.

About Lockheed Martin

Lockheed Martin Corporation is a global leader in the security and aerospace sector, focusing on the research, design, development, manufacture, integration, and sustainment of technology systems and services. The company operates through various segments including Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

Lockheed, Martin, Stocks