Lockheed Martin (NYSE:LMT) Shares Gap Up – Should You Buy?

Lockheed Martin Corporation (NYSE:LMT)’s stock price gapped up prior to trading on Thursday . The stock had previously closed at $496.87, but opened at $531.89. Lockheed Martin shares last traded at $534.8220, with a volume of 1,691,145 shares changing hands.

Lockheed Martin News Roundup

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

• Positive Sentiment: President Trump’s proposal to raise U.S. defense spending to about $1.5 trillion by 2027 lifted the entire defense sector and drove renewed buying interest in prime contractors like Lockheed, as markets anticipate bigger backlog, higher unit volumes and stronger multi-year revenue visibility. Defense stocks rise on Trump’s proposed military spending boost
• Positive Sentiment: Market reports note a sector-wide surge after the budget headline — headlines and premarket moves specifically cited LMT jumping on the proposal as investors re-rate future defense spending assumptions. Why Is Lockheed Martin Stock Rising Today? Trump Calls For $1.5 Trillion Defense Budget
• Positive Sentiment: Lockheed reached a multi-year Pentagon agreement to more than triple PAC?3 MSE Patriot interceptor production (to ~2,000 units/year), which should boost near-to-medium-term revenue and margin leverage in missile systems. This is a direct, contract-driven tailwind. Lockheed Martin to more than triple Patriot missile production capacity
• Positive Sentiment: Lockheed reported a record year for F-35 deliveries (191 jets in 2025), supporting stronger program cash flow and production cadence — another operational data point underpinning higher revenue visibility. Lockheed says 2025 F-35 deliveries hit 191 as demand lifts production pace
• Neutral Sentiment: Zacks issued a mix of small EPS estimate changes (some upgrades for FY2026 and quarters, some modest cuts for parts of FY2027). These tweaks slightly adjust near-term modeling but are not a major directional shift on their own. Zacks Research earnings estimate updates
• Negative Sentiment: President Trump signed an order and posted statements aiming to block dividends and buybacks at defense firms until production improves and criticized executive pay — moves that spooked investors and triggered an earlier selloff and volatility for LMT (whipsaw trading). These actions create political/regulatory risk to shareholder returns. Trump signs order to block defense companies from buying back stock until arms production improves
• Negative Sentiment: News outlets documented intraday whipsaws — initial drops (~5%) as traders reacted to buyback/dividend restrictions before the rebound on the budget proposal — highlighting elevated short-term volatility and headline risk for the shares. Lockheed Martin (LMT) Stock Falls 5% on Trump Defense Policy Changes

Analysts Set New Price Targets

A number of equities analysts have recently issued reports on the company. The Goldman Sachs Group increased their target price on Lockheed Martin from $398.00 to $425.00 and gave the stock a “sell” rating in a research note on Friday, October 10th. UBS Group reiterated a “neutral” rating on shares of Lockheed Martin in a research report on Wednesday. Deutsche Bank Aktiengesellschaft reduced their target price on Lockheed Martin from $517.00 to $492.00 and set a “hold” rating for the company in a report on Wednesday, December 10th. Robert W. Baird boosted their target price on shares of Lockheed Martin from $500.00 to $550.00 and gave the stock an “outperform” rating in a research report on Monday, October 6th. Finally, Royal Bank Of Canada increased their price target on shares of Lockheed Martin from $440.00 to $525.00 and gave the company a “sector perform” rating in a report on Tuesday, October 7th. Two analysts have rated the stock with a Strong Buy rating, four have issued a Buy rating, seventeen have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $506.18.

Lockheed Martin Trading Up 5.0%

The firm has a market cap of $120.71 billion, a PE ratio of 29.14, a PEG ratio of 1.48 and a beta of 0.24. The company has a debt-to-equity ratio of 3.32, a current ratio of 1.13 and a quick ratio of 0.97. The business has a 50-day moving average price of $472.23 and a two-hundred day moving average price of $467.17.

Lockheed Martin (NYSE:LMT) last released its quarterly earnings data on Tuesday, October 21st. The aerospace company reported $6.95 EPS for the quarter, topping the consensus estimate of $6.33 by $0.62. Lockheed Martin had a net margin of 5.73% and a return on equity of 111.84%. The business had revenue of $18.61 billion for the quarter, compared to analyst estimates of $18.45 billion. During the same period in the previous year, the firm earned $6.84 EPS. The business’s revenue for the quarter was up 8.8% compared to the same quarter last year. Lockheed Martin has set its FY 2025 guidance at 22.150-22.350 EPS. Analysts forecast that Lockheed Martin Corporation will post 27.15 EPS for the current year.

Insider Buying and Selling at Lockheed Martin

In related news, COO John Frank A. St sold 7,792 shares of Lockheed Martin stock in a transaction that occurred on Thursday, October 23rd. The stock was sold at an average price of $491.04, for a total transaction of $3,826,183.68. Following the completion of the transaction, the chief operating officer directly owned 1 shares in the company, valued at $491.04. The trade was a 99.99% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. 0.14% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Lockheed Martin

A number of institutional investors have recently made changes to their positions in the stock. United Financial Planning Group LLC acquired a new position in Lockheed Martin in the 3rd quarter valued at about $25,000. Barnes Dennig Private Wealth Management LLC boosted its stake in shares of Lockheed Martin by 285.7% during the 3rd quarter. Barnes Dennig Private Wealth Management LLC now owns 54 shares of the aerospace company’s stock worth $27,000 after purchasing an additional 40 shares during the last quarter. Grey Fox Wealth Advisors LLC purchased a new stake in shares of Lockheed Martin during the third quarter worth about $27,000. Mid American Wealth Advisory Group Inc. acquired a new position in shares of Lockheed Martin in the second quarter valued at approximately $28,000. Finally, Twin Peaks Wealth Advisors LLC acquired a new position in shares of Lockheed Martin in the second quarter valued at approximately $29,000. 74.19% of the stock is owned by institutional investors and hedge funds.

Lockheed Martin Company Profile

Lockheed Martin Corporation (NYSE: LMT) is a global aerospace and defense company that designs, develops and manufactures advanced technology systems for government and commercial customers. Formed through the 1995 merger of Lockheed Corporation and Martin Marietta, the company is headquartered in Bethesda, Maryland, and focuses on providing integrated solutions across air, space, land and sea domains. Its primary customers include the U.S. Department of Defense, NASA and allied governments around the world.

Lockheed Martin’s product and service portfolio spans military aircraft, missile and fire-control systems, missile defense, space systems and satellite technologies, sensors and precision weapons.