Stock trading activity by members of the United States Congress remains a crucial area of concern, particularly regarding the potential use of insider information.
In this context, defense giant Lockheed Martin (NYSE: LMT) is in the spotlight after landing a significant deal that raised questions about the timing of some lawmakers’ purchases.
Specifically, the deal saw Lockheed Martin secure a $3.4 billion modification contract for the U.S. Army’s guided multiple-launch rocket system.
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This contract is expected to bolster Lockheed Martin’s revenue targets, following an impressive Q2 2024 in which revenues reached $18.12 billion, reflecting an 8.5% year-over-year growth.
Timing of Congress LMT purchases
In this context, data shared by charting platform Trend Spider in an X post on August 2 revealed a consistent effort by Congress members to purchase the stock over the last 24 months before the contract award.
“On Friday, Lockheed Martin $LMT was awarded a $3.4 BILLION contract with the US Army. Congress members have been loading the boat relentlessly for the last 24 months,” the platform noted.
The data indicated that notable names such as Representatives Kevin Hern, Kathy Manning, and Jared Moskowitz made purchases throughout 2023 and 2024, often coinciding with price dips and subsequent recoveries.
Based on data from Quiver Quant, a breakdown of the purchases shows that Hern’s last LMT purchase occurred on June 28, ranging between $1,001 and $15,000. Since the purchase by the Representative from Oklahoma, the stock has rallied 21%.
On the other hand, Moskowitz bought several stakes in the defense firm, with his last purchase recorded on July 1, 2024. His stakes also ranged between $1,001 and $15,000. Similarly, the stock has rallied about 21% since her purchase.
It is worth noting that although Manning is a shareholder in Lockheed Martin, she partially sold the stock on July 2.
A review of the trading patterns shows that these purchases were mainly initiated during periods of LMT’s consolidation or slight sell-offs, offering strategic entry points given the stock’s recent performance.
LMT stock price prediction
Meanwhile, the stock has rallied recently, coinciding with Lockheed Martin’s latest contract award. However, analysts maintain a bearish sentiment around the equity for the next 12 months.
Specifically, according to 15 Wall Street analysts at TipRanks, the stock is likely to drop 1% in the next 12 months, with an average price target of $561. The highest price target is $635, while the lowest forecast is $505. However, the majority of experts have maintained a ‘buy’ rating.
Regarding price movement, LMT has rallied almost 25% in 2024, trading at $568 at the last market close.
In summary, with LMT making significant gains in recent weeks, the issue of politicians potentially having insider information before their purchases raises substantial questions. It remains to be seen if the stock will continue to rally following the recent contract award.
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