Lockheed Martin (NYSE:LMT) Shares Down 2.5% – Time to Sell?

Lockheed Martin Corporation (NYSE:LMT)’s share price was down 2.5% on Tuesday . The company traded as low as $515.60 and last traded at $522.0740. Approximately 1,412,585 shares were traded during trading, a decline of 4% from the average daily volume of 1,475,520 shares. The stock had previously closed at $535.40.

Key Headlines Impacting Lockheed Martin

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

• Positive Sentiment: The U.S. Army awarded Lockheed Martin an indefinite-delivery, indefinite-quantity contract worth up to $1.2 billion for Precision Strike Missile (PrSM) Increment 2 production. A recent test demonstrated the missile’s ability to engage moving maritime targets, expanding its potential battlefield applications and supporting long-term missile-revenue growth. Lockheed wins US Army missile contract worth up to $1.2 billion
• Positive Sentiment: Germany’s presentation of its first F-35A Lightning II highlights continued international adoption of Lockheed Martin’s fighter program, which has now been selected by 20 nations. Broader global demand strengthens the company’s long-term production, services and sustainment opportunity. How Does This F-35A Rollout Strengthen NATO Deterrence for Lockheed Martin
• Positive Sentiment: Lockheed Martin is scheduled to pay its quarterly dividend this week. The payout provides a near-term shareholder-return catalyst and reinforces the stock’s appeal to income-oriented investors, although the dividend alone is unlikely to offset broader sector selling. Lockheed Martin to pay dividends this week
• Neutral Sentiment: Lockheed has also been advancing the classified AIM-260 air-to-air missile for integration with the F-22 and F-35. The program could benefit from rising demand for advanced weapons, but limited public details make its near-term financial impact difficult to assess. Lockheed Martin Fast-Tracks Secret Missile as Global Weapons Demand Rises
• Negative Sentiment: A reported potential reopening of the Strait of Hormuz has pressured aerospace and defense shares broadly by reducing perceived geopolitical tension. LMT and other major defense contractors are therefore facing sector-wide selling despite company-specific contract wins. Defense Stocks Fall While Oil Slides on Hormuz Reopening Report
• Negative Sentiment: Investors are also evaluating risks around Lockheed’s stealth-drone development, with reports that the Air Force is not seeking the aircraft and the company is building prototypes without a firm customer commitment. That raises concerns about development spending and potential returns.

Analyst Upgrades and Downgrades

Several equities research analysts recently weighed in on the company. Wells Fargo & Company set a $600.00 price target on Lockheed Martin in a report on Monday, July 27th. Jefferies Financial Group reissued a “hold” rating on shares of Lockheed Martin in a research note on Wednesday, September 2nd. Robert W. Baird set a $700.00 price objective on shares of Lockheed Martin in a research report on Friday, July 24th. TD Cowen reduced their target price on shares of Lockheed Martin from $600.00 to $560.00 and set a “hold” rating for the company in a research note on Monday, July 13th. Finally, Weiss Ratings raised shares of Lockheed Martin from a “hold (c+)” rating to a “buy (b-)” rating in a report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock has an average rating of “Hold” and a consensus price target of $637.56.

Lockheed Martin Trading Down 2.5%

The company has a market cap of $120.49 billion, a price-to-earnings ratio of 19.24, a P/E/G ratio of 1.16 and a beta of 0.10. The business has a fifty day simple moving average of $556.84 and a 200 day simple moving average of $559.90. The company has a quick ratio of 1.01, a current ratio of 1.19 and a debt-to-equity ratio of 2.34.

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

Lockheed Martin Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, September 25th. Stockholders of record on Tuesday, September 1st will be given a dividend of $3.45 per share. This represents a $13.80 dividend on an annualized basis and a dividend yield of 2.6%. The ex-dividend date is Tuesday, September 1st. Lockheed Martin’s dividend payout ratio (DPR) is presently 50.87%.

Institutional Investors Weigh In On Lockheed Martin

Institutional investors and hedge funds have recently modified their holdings of the company. Sandy Cove Advisors LLC boosted its stake in shares of Lockheed Martin by 4.4% during the 4th quarter. Sandy Cove Advisors LLC now owns 430 shares of the aerospace company’s stock worth $208,000 after acquiring an additional 18 shares during the last quarter. Stonebridge Financial Group LLC MO increased its stake in shares of Lockheed Martin by 2.8% in the 1st quarter. Stonebridge Financial Group LLC MO now owns 658 shares of the aerospace company’s stock worth $397,000 after purchasing an additional 18 shares in the last quarter. Rooted Wealth Advisors Inc. raised its holdings in Lockheed Martin by 1.8% in the 1st quarter. Rooted Wealth Advisors Inc. now owns 1,036 shares of the aerospace company’s stock worth $602,000 after purchasing an additional 18 shares during the period. Bruce G. Allen Investments LLC raised its holdings in Lockheed Martin by 24.1% in the 4th quarter. Bruce G. Allen Investments LLC now owns 98 shares of the aerospace company’s stock worth $47,000 after purchasing an additional 19 shares during the period. Finally, Beacon Capital Management LLC lifted its position in Lockheed Martin by 4.5% during the second quarter. Beacon Capital Management LLC now owns 442 shares of the aerospace company’s stock valued at $225,000 after purchasing an additional 19 shares in the last quarter. Institutional investors and hedge funds own 74.19% of the company’s stock.

About Lockheed Martin

Lockheed Martin Corporation is a global aerospace, defense and technology company that develops and produces systems for government and commercial customers, with the U.S. Department of Defense serving as its largest customer. Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.

The company’s products and services include military aircraft such as the F-35 Lightning II, F-16 and C-130; air and missile defense systems; precision weapons; helicopters and maritime systems; radar, sensors and command-and-control technologies; satellites; space exploration systems; and missile-warning and strategic defense capabilities.

Lockheed Martin was created in 1995 through the merger of Lockheed Corporation and Martin Marietta.