Lumbard & Kellner LLC significantly increased its investment in Lockheed Martin Corporation (NYSE: LMT) by acquiring an additional 4,645 shares during the second quarter of 2023. This acquisition marks an 88.9% increase in the fund’s holdings, bringing the total number of shares owned to 9,872. Lockheed Martin now represents approximately 2.0% of Lumbard & Kellner’s investment portfolio, making it the firm’s 21st largest holding. As of the end of the second quarter, the value of these shares stood at approximately $4,572,000.
Several other institutional investors have also adjusted their stakes in Lockheed Martin recently. Mid American Wealth Advisory Group Inc. entered a new position valued at around $28,000, while Frazier Financial Advisors LLC acquired shares worth $34,000. MTM Investment Management LLC and GFG Capital LLC made similar moves, investing $36,000 and $43,000, respectively. Bernard Wealth Management Corp. notably increased its holdings by 251.9%, owning a total of 95 shares valued at $44,000 after acquiring an additional 68 shares. Overall, institutional investors and hedge funds now own 74.19% of Lockheed Martin’s stock.
Analyst Ratings and Stock Performance
Lockheed Martin has garnered attention from analysts, with several recent reports suggesting varied outlooks on the stock. On October 7, 2023, the Royal Bank of Canada raised its target price from $440.00 to $525.00, maintaining a “sector perform” rating. Wall Street Zen upgraded the stock from “buy” to “strong-buy” on November 22, 2023. Conversely, Bank of America adjusted its target price from $495.00 to $480.00, assigning a “neutral” rating.
Analysts have generally rated Lockheed Martin positively, with two giving it a “strong buy,” seven a “buy,” fifteen a “hold,” and one a “sell.” The consensus target price stands at $515.50 according to data from MarketBeat. As of Monday, LMT shares opened at $457.44, with a market capitalization of $105.85 billion and a price-to-earnings ratio of 25.54.
Financial Highlights and Future Outlook
Lockheed Martin’s recent quarterly earnings, reported on October 21, 2023, exceeded expectations. The company announced earnings per share (EPS) of $6.95, surpassing analysts’ estimates of $6.33 by $0.62. The aerospace firm generated revenue of $18.61 billion during the quarter, an increase of 8.8% year-over-year, compared to analyst predictions of $18.45 billion. Lockheed Martin has set its fiscal year 2025 guidance at EPS between 22.150 and 22.350. Analysts anticipate a total EPS of 27.15 for the current year.
The company also announced an increase in its quarterly dividend, which will be paid on December 30, 2023. Stockholders on record as of December 1, 2023, will receive a dividend of $3.45 per share, up from the previous $3.30. This adjustment reflects an annualized dividend of $13.80 and a yield of 3.0%. The dividend payout ratio currently stands at 77.05%.
In related news, Lockheed Martin’s Chief Operating Officer, John Frank A. St, sold 7,792 shares on October 23, 2023, at an average price of $491.04, totaling approximately $3,826,183.68. Following this transaction, his remaining ownership in the company is now just one share, valued at $491.04. Company insiders currently hold 0.14% of Lockheed Martin’s stock.
Lockheed Martin Corporation operates in the security and aerospace sectors, focusing on the research, design, development, and manufacture of advanced technology systems and services. The company categorizes its operations into four segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space.
