Lockheed Martin (NYSE:LMT) Stock Crosses Below Two Hundred Day Moving Average – Should You Sell?

Lockheed Martin Corporation (NYSE:LMT)’s stock price crossed below its 200-day moving average during trading on Friday. The stock has a 200-day moving average of $569.65 and traded as low as $561.85. Lockheed Martin shares last traded at $566.4310, with a volume of 1,387,287 shares traded.

Key Headlines Impacting Lockheed Martin

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

• Positive Sentiment: Zacks says Lockheed Martin has gained 12% over six months, supported by a record backlog, global defense demand, major contracts and strategic acquisitions. It also describes the shares as trading at a discount to the industry, which could appeal to value-focused investors. Article: LMT Trades at a Discount to the Industry
• Positive Sentiment: Industry earnings point to ongoing demand for conventional weapons as well as drones and advanced defense systems, a supportive backdrop for defense contractors, although the article does not provide Lockheed-specific results. Article: Defense earnings reveal a more complicated rearmament boom
• Neutral Sentiment: Lockheed Martin is attracting increased attention from Zacks users, but the coverage does not identify a specific new company development driving that interest. Article: What to Know Beyond Why Lockheed Martin Is a Trending Stock
• Negative Sentiment: Defense shares faced political and budget uncertainty after Democrats took control of Congress. Reports say a proposed $1.5 trillion defense budget request may be in jeopardy, raising questions about future spending and contributing to pressure on Lockheed Martin and other contractors. Article: Defense Stocks Sank as Democrats Took Congress
• Negative Sentiment: Lockheed Martin agreed to pay $29.5 million to settle federal claims that it discriminated against white workers. The payment is a cost and may bring reputational scrutiny, though it is not presented as a change to the company’s operating outlook. Article: Lockheed Martin paying $29.5M settlement

Analysts Set New Price Targets

Several equities analysts have recently weighed in on the stock. Weiss Ratings raised shares of Lockheed Martin from a “hold (c+)” rating to a “buy (b-)” rating in a research note on Friday, October 9th. Wells Fargo & Company increased their price objective on shares of Lockheed Martin from $600.00 to $700.00 and gave the company an “equal weight” rating in a research note on Monday, November 2nd. TD Cowen cut their price objective on shares of Lockheed Martin from $600.00 to $570.00 and set a “hold” rating for the company in a research report on Friday, October 9th. Guggenheim began coverage on shares of Lockheed Martin in a research report on Wednesday. They set a “buy” rating and a $735.00 target price on the stock. Finally, Jefferies Financial Group restated a “hold” rating and set a $615.00 price objective on shares of Lockheed Martin in a research note on Sunday, October 25th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating, ten have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $647.00.

Lockheed Martin Trading Down 1.7%

The firm has a market capitalization of $130.85 billion, a price-to-earnings ratio of 20.12, a price-to-earnings-growth ratio of 1.36 and a beta of 0.07. The company has a fifty day moving average price of $548.25 and a 200-day moving average price of $569.65. The company has a current ratio of 1.26, a quick ratio of 1.10 and a debt-to-equity ratio of 2.04.

Lockheed Martin (NYSE:LMT) last released its earnings results on Thursday, October 22nd. The aerospace company reported $7.97 earnings per share (EPS) for the quarter, topping the consensus estimate of $7.52 by $0.45. Lockheed Martin had a return on equity of 83.41% and a net margin of 8.23%. The company had revenue of $20.71 billion for the quarter, compared to analyst estimates of $20.48 billion. During the same period in the prior year, the firm posted $6.95 EPS. Lockheed Martin’s quarterly revenue was up 11.3% on a year-over-year basis. On average, equities research analysts predict that Lockheed Martin Corporation will post 30.66 EPS for the current year.

Lockheed Martin Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, December 31st. Stockholders of record on Tuesday, December 1st will be issued a dividend of $3.60 per share. This represents a $14.40 dividend on an annualized basis and a dividend yield of 2.5%. This is a boost from Lockheed Martin’s previous quarterly dividend of $3.45. The ex-dividend date is Tuesday, December 1st. Lockheed Martin’s payout ratio is presently 49.02%.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in LMT. IAG Wealth Partners LLC grew its stake in Lockheed Martin by 4,800.0% during the first quarter. IAG Wealth Partners LLC now owns 49 shares of the aerospace company’s stock worth $30,000 after purchasing an additional 48 shares during the period. Burnham & Co LLC acquired a new position in Lockheed Martin during the second quarter worth $25,000. Field & Main Bank purchased a new stake in shares of Lockheed Martin during the 2nd quarter worth approximately $26,000. Kelleher Financial Advisors purchased a new stake in Lockheed Martin in the 2nd quarter worth approximately $29,000. Finally, Highland Investment Advisors LLC bought a new position in Lockheed Martin during the 2nd quarter worth $29,000. Institutional investors and hedge funds own 74.19% of the company’s stock.

About Lockheed Martin

Lockheed Martin Corporation is a global security and aerospace company headquartered in Bethesda, Maryland. Formed in 1995 through the merger of Lockheed Corporation and Martin Marietta, the company develops and produces advanced defense, aerospace, and technology systems for government and commercial customers.

Its principal business areas include Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. Products and services include military aircraft such as the F-35 Lightning II, C-130 Hercules, and F-16 Fighting Falcon; missile-defense and precision-strike systems; helicopters and naval systems; command, control, communications, and intelligence technologies; satellites; space exploration systems; and other classified space and defense programs.

Lockheed Martin serves the U.S.