Lockheed Martin (NYSE:LMT) Stock Falls 2.2% – Should You Sell?

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

Lockheed Martin News Summary

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

• Positive Sentiment: Lockheed Martin won its first S-70i Black Hawk training contract from the Philippines. The award expands the company’s international defense-training business and could create additional recurring opportunities as the customer builds its helicopter capabilities. Can Lockheed Martin’s Training Solutions Expand Its Defense Business?
• Positive Sentiment: The Pentagon’s framework agreement for Lockheed Martin’s AIM-260 Joint Advanced Tactical Missile supports a ramp-up in production and delivery. The program could provide multiyear revenue visibility and benefit from sustained demand for advanced air-defense weapons. Can Lockheed Martin’s AIM-260 Missile Deliver Multiyear Growth?
• Positive Sentiment: Several recent analyses point to Lockheed Martin’s record backlog, raised full-year outlook and missile-growth potential as evidence that the shares may be undervalued. The stock trades below its recent average valuation multiple, while UBS maintains a substantially higher $674 price target and Rothschild & Co. initiated coverage with a buy rating. Is The Market Underpricing Lockheed Martin Stock?
• Neutral Sentiment: Investors are focused on Lockheed Martin’s October 22 earnings report. The key tests will be whether backlog converts into revenue, missile production improves margins and management can support its full-year earnings guidance of $29.95 to $30.65 per share.
• Negative Sentiment: TD Cowen lowered its LMT price target from $600 to $570 and retained a “hold” rating. Although the new target still implies meaningful upside, the reduction signals more limited near-term conviction. TD Cowen Lowers Lockheed Martin Price Target
• Negative Sentiment: Lockheed Martin has recently underperformed the broader market, with its shares declining over the past several months and remaining below key moving averages. That weak momentum may keep investors cautious ahead of earnings despite the company’s strong backlog and defense-demand outlook.

Wall Street Analyst Weigh In

LMT has been the topic of several research reports. Morgan Stanley lifted their price objective on shares of Lockheed Martin from $653.00 to $690.00 and gave the company an “equal weight” rating in a report on Friday, July 24th. Jefferies Financial Group restated a “hold” rating on shares of Lockheed Martin in a report on Wednesday, September 2nd. Citigroup increased their target price on Lockheed Martin from $641.00 to $691.00 and gave the company a “buy” rating in a research report on Thursday, August 13th. Weiss Ratings downgraded Lockheed Martin from a “buy (b-)” rating to a “hold (c+)” rating in a report on Thursday, September 24th. Finally, Wells Fargo & Company set a $600.00 price target on Lockheed Martin in a research report on Monday, July 27th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, eleven have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Lockheed Martin currently has a consensus rating of “Hold” and an average price target of $634.50.

Lockheed Martin Price Performance

The company has a market cap of $117.18 billion, a PE ratio of 18.72, a PEG ratio of 1.08 and a beta of 0.09. The company has a debt-to-equity ratio of 2.34, a current ratio of 1.19 and a quick ratio of 1.01. The stock’s 50-day moving average is $549.35 and its 200 day moving average is $547.40.

Lockheed Martin (NYSE:LMT) last issued its quarterly earnings results on Thursday, July 23rd. The aerospace company reported $7.94 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.22 by $0.72. The business had revenue of $20.06 billion for the quarter, compared to the consensus estimate of $19.34 billion. Lockheed Martin had a return on equity of 91.42% and a net margin of 8.16%.The business’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period in the prior year, the firm posted $1.46 earnings per share. 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 earnings per share for the current fiscal year.

Lockheed Martin Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Friday, September 25th. Investors of record on Tuesday, September 1st were given a dividend of $3.45 per share. This represents a $13.80 annualized dividend and a yield of 2.7%. The ex-dividend date of this dividend was Tuesday, September 1st. Lockheed Martin’s dividend payout ratio is currently 50.87%.

Institutional Investors Weigh In On Lockheed Martin

Institutional investors have recently added to or reduced their stakes in the business. State Street Corp raised its position in shares of Lockheed Martin by 1.3% in the 2nd quarter. State Street Corp now owns 32,975,170 shares of the aerospace company’s stock valued at $16,799,530,000 after purchasing an additional 419,582 shares during the last quarter. BlackRock Inc. purchased a new stake in Lockheed Martin during the 2nd quarter worth approximately $9,617,574,000. Corient Private Wealth LP purchased a new stake in Lockheed Martin during the 2nd quarter worth approximately $101,960,000. Bank of New York Mellon Corp acquired a new position in Lockheed Martin during the 2nd quarter valued at approximately $645,258,000. Finally, Legal & General Group Plc acquired a new position in Lockheed Martin during the 2nd quarter valued at approximately $497,469,000. 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 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.