Lockheed Martin (NYSE: LMT) has been going through a rough patch, its stock is down 6.82% in the past six months and currently trading at around $480.
However, a positive change might be on the horizon in light of President Trump’s new defense proposals recently outlined during the aerospace summit in Doha, Qatar.
Despite a rocky performance over the last six months, Lockheed Martin continues to offer a generous dividend payment of $3.30 per share, with the next pay date set for June 27. For investors holding 100 LMT shares, this translated to a total payment of $330. The dividend payout ratio currently stands at 57.02%.
LMT stock analysis
Wall Street appears to be divided on Lockheed Martin. UBS, for example, raised its target price to $499, while the Bank of America (BofA) cut it from $685 to $485.
Lockheed Martin itself reported strong first-quarter results in April, however, delivering earnings of $7.28 per share and beating the $6.34 consensus. Quarterly revenue also reached $17.96 billion, exceeding estimates of $17.83 billion. Likewise, the company reported a net margin of 7.51% and a return on equity of 101.47%.
Given the positive results, institutional investors flocked to LMT. GAMMA Investing LLC, for instance, added nearly 2 million LMT shares in Q1, while Charles Schwab Investment Management increased its holdings by 17.9%. In other words, around three quarters of the company’s shares are now held by institutional investors.
Trump’s recent ideas for the aerospace sector and comments on F-35 and F-55 jets, even if unofficial, also signal potential new opportunities for Lockheed Martin, which is focusing on advancing uncrewed and optionally piloted versions of its fighters.
Indeed, with over 1,200 F-35s already delivered and an advancement-oriented roadmap, Lockheed Martin appears ready to bank on changes in the industry.
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