Lockheed Martin Corporation (NYSE:LMT) has garnered a consensus recommendation of “Hold” from twenty-five brokerages currently monitoring the company’s stock, as reported by MarketBeat Ratings. The assessments reveal a divided outlook: one analyst rated the stock as a sell, fifteen designated it as a hold, seven offered a buy rating, and two analysts assigned a strong buy recommendation.
Analysts have set an average 1-year price target of $515.50 for Lockheed Martin, indicating a cautious optimism in the market. Notable recent evaluations include Robert W. Baird, which raised its price target from $500.00 to $550.00 and categorized Lockheed Martin as “outperform” in a note dated October 6, 2023. Similarly, BNP Paribas upgraded the stock to a “strong buy” rating on November 18, 2023.
Additional changes came from UBS Group, which lowered its target price from $514.00 to $513.00, maintaining a “neutral” outlook in a report issued on October 22, 2023. Deutsche Bank Aktiengesellschaft set its price target at $519.00 while also rating the stock as a hold on October 8, 2023. Finally, Sanford C. Bernstein increased its price objective from $497.00 to $545.00, categorizing Lockheed Martin as a “market perform” on October 20, 2023.
Institutional Trading Activity
Recent trading activity indicates significant institutional interest in Lockheed Martin. Vanguard Group Inc. increased its holdings by 1.0% in the second quarter, owning 21,697,527 shares valued at approximately $10.05 billion after acquiring an additional 214,565 shares. Charles Schwab Investment Management Inc. also raised its stake by 7.5% in the first quarter, bringing its total to 8,031,528 shares valued at around $3.59 billion.
Geode Capital Management LLC, Wellington Management Group LLP, and Royal Bank of Canada have also made notable changes to their positions. Geode increased its holdings by 0.4%, now owning 4,884,954 shares valued at $2.26 billion. Wellington Management boosted its position by 3.4%, now holding 2,384,753 shares worth approximately $1.19 billion. Royal Bank of Canada raised its stake by 1.4%, bringing its total to 2,287,495 shares valued at about $1.02 billion. Overall, institutional investors hold 74.19% of Lockheed Martin’s stock.
Stock Performance and Financial Highlights
Lockheed Martin’s stock opened at $447.95 on Friday. The company’s fifty-day moving average stands at $479.53, while the two-hundred-day moving average is noted at $465.83. The stock has fluctuated between a fifty-two week low of $410.11 and a high of $520.56. With a market capitalization of $103.66 billion, Lockheed Martin has a price-to-earnings ratio of 25.01 and a PEG ratio of 1.29.
In its latest quarterly earnings report released on October 21, 2023, Lockheed Martin reported earnings per share (EPS) of $6.95, surpassing the consensus estimate of $6.33 by $0.62. The company recorded revenue of $18.61 billion, exceeding the projected $18.45 billion. Lockheed Martin experienced an 8.8% increase in revenue compared to the same quarter the previous year, with a net margin of 5.73% and a return on equity of 111.84%.
Looking ahead, Lockheed Martin has set its fiscal year 2025 guidance at 22.150-22.350 EPS. Analysts estimate that the company will post an EPS of 27.15 for the current year.
In addition to its financial performance, Lockheed Martin recently declared a quarterly dividend of $3.45 per share, an increase from the previous dividend of $3.30. This dividend will be paid on December 30, 2023, to stockholders of record on December 1, 2023. The annualized dividend now stands at $13.80, yielding 3.1%, with a dividend payout ratio of 77.05%.
Lockheed Martin Corporation is a prominent player in the security and aerospace sectors, involved in the research, design, development, manufacture, integration, and maintenance of technology systems and products globally. The company operates through various segments, including Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
