Traders Buy Lockheed Martin (LMT) on Weakness

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Traders purchased shares of Lockheed Martin Co. (NYSE:LMT) on weakness during trading hours on Monday. $144.07 million flowed into the stock on the tick-up and $95.86 million flowed out of the stock on the tick-down, for a money net flow of $48.21 million into the stock. Of all companies tracked, Lockheed Martin had the 19th highest net in-flow for the day. Lockheed Martin traded down ($1.36) for the day and closed at $326.78

Several equities analysts recently commented on the company. Morgan Stanley boosted their target price on Lockheed Martin from $352.00 to $377.00 and gave the stock an “overweight” rating in a research report on Wednesday, July 25th. Stifel Nicolaus reduced their target price on Lockheed Martin from $400.00 to $370.00 and set a “buy” rating for the company in a research report on Wednesday, July 25th. Zacks Investment Research cut Lockheed Martin from a “buy” rating to a “hold” rating in a research report on Friday, October 12th. Cowen upgraded Lockheed Martin from a “market perform” rating to an “outperform” rating and set a $370.00 target price for the company in a research report on Wednesday, July 25th. Finally, Berenberg Bank upgraded Lockheed Martin from a “hold” rating to a “buy” rating in a research report on Thursday, July 26th. Nine research analysts have rated the stock with a hold rating and ten have given a buy rating to the company. The company presently has an average rating of “Buy” and an average target price of $377.14.

The company has a quick ratio of 0.97, a current ratio of 1.19 and a debt-to-equity ratio of 28.14. The firm has a market capitalization of $93.45 billion, a PE ratio of 24.51, a PEG ratio of 2.60 and a beta of 0.71.

Lockheed Martin (NYSE:LMT) last posted its quarterly earnings data on Tuesday, July 24th. The aerospace company reported $4.31 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.92 by $0.39. Lockheed Martin had a return on equity of 944.31% and a net margin of 5.00%. The firm had revenue of $13.40 billion during the quarter, compared to analysts’ expectations of $12.72 billion. During the same period in the prior year, the business earned $3.23 EPS. The company’s revenue for the quarter was up 6.6% compared to the same quarter last year. As a group, analysts expect that Lockheed Martin Co. will post 17.24 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Friday, December 28th. Stockholders of record on Monday, December 3rd will be issued a $2.20 dividend. This is a boost from Lockheed Martin’s previous quarterly dividend of $2.00. This represents a $8.80 dividend on an annualized basis and a dividend yield of 2.69%. The ex-dividend date of this dividend is Friday, November 30th. Lockheed Martin’s dividend payout ratio is presently 60.02%.

Lockheed Martin declared that its board has initiated a share repurchase program on Thursday, September 27th that permits the company to repurchase $1.00 billion in shares. This repurchase authorization permits the aerospace company to repurchase up to 1% of its stock through open market purchases. Stock repurchase programs are often a sign that the company’s management believes its shares are undervalued.

In related news, Chairman Marillyn A. Hewson sold 25,000 shares of the stock in a transaction dated Friday, July 27th. The stock was sold at an average price of $323.68, for a total transaction of $8,092,000.00. Following the completion of the sale, the chairman now directly owns 90,625 shares in the company, valued at approximately $29,333,500. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, SVP Maryanne Lavan sold 7,250 shares of the stock in a transaction dated Wednesday, July 25th. The shares were sold at an average price of $323.64, for a total value of $2,346,390.00. Following the sale, the senior vice president now owns 9,869 shares of the company’s stock, valued at $3,194,003.16. The disclosure for this sale can be found here. 0.35% of the stock is currently owned by corporate insiders.

A number of hedge funds have recently modified their holdings of LMT. Charles Schwab Investment Advisory Inc. purchased a new stake in Lockheed Martin during the 2nd quarter valued at about $240,085,000. American Century Companies Inc. boosted its holdings in Lockheed Martin by 121.4% during the 2nd quarter. American Century Companies Inc. now owns 1,275,669 shares of the aerospace company’s stock valued at $376,871,000 after acquiring an additional 699,579 shares during the period. Massachusetts Financial Services Co. MA boosted its holdings in Lockheed Martin by 13.0% during the 2nd quarter. Massachusetts Financial Services Co. MA now owns 2,552,936 shares of the aerospace company’s stock valued at $754,213,000 after acquiring an additional 292,851 shares during the period. Mainstay Capital Management LLC ADV boosted its holdings in Lockheed Martin by 25,999.4% during the 2nd quarter. Mainstay Capital Management LLC ADV now owns 223,150 shares of the aerospace company’s stock valued at $785,000 after acquiring an additional 222,295 shares during the period. Finally, Janus Henderson Group PLC boosted its holdings in Lockheed Martin by 19.2% during the 2nd quarter. Janus Henderson Group PLC now owns 1,220,060 shares of the aerospace company’s stock valued at $360,453,000 after acquiring an additional 196,432 shares during the period. Institutional investors own 77.90% of the company’s stock.

Lockheed Martin Company Profile (NYSE:LMT)

Lockheed Martin Corporation, a security and aerospace company, engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services worldwide. It operates through four segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space.

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