Lockheed Martin Corporation (NYSE:LMT) Production of F-35’s May Be Cut By Pentagon


Lockheed Martin Corporation (NYSE:LMT) may be about to lose a decent chunk of their future revenue based on possible plans by the Pentagon for their fiscal 2017 budget. The Pentagon may be about to cut their orders of Lockheed Martin Corp’s F-35 fighter jet in order to meet Congress’ recent budget cap.

“Dollar for dollar it probably gives us more combat capability than any other investment that we’re making, but we’ve got a lot of other things that we need to do as well,” said Frank Kendall, undersecretary for defense for acquisition, technology and logistics. “It’s not entirely fenced.”
The stock has fallen 0.09% or $0.2 following this negative news, hitting $220 per share. Approximately 145,430 shares traded hands. LMT shares have risen 15.11% since April 29, 2015 and are currently uptrending. It has outperformed the S&P500 by 15.31%.

From a total of 10 analysts covering Lockheed Martin Corporation (NYSE:LMT) stock, 5 rate it a “Buy”, 1 a “Sell”, and 4 a “Hold”. This means that 50% of the ratings are positive. The highest target price is $237 while the lowest target price is $204. The mean of all analyst targets is $226 which is 2.73% above today’s ($220) stock price. Lockheed Martin Corporation was the topic of 15 analyst reports since July 21, 2015 according to the firm StockzIntelligence Inc. Barclays Capital downgraded shares on November 30 to a “Underweight” rating. Citigroup maintained shares with a”Buy” rating and a $232 target share price in their report from an August 19. Argus Research maintained LMT stock in a recent report from October 22 with a “Buy” rating. Finally, Zacks upgraded the stock to a “Buy” rating in a report they issued on a September 3.

The institutional sentiment increased to 1 in Q2 2015. It’s up 0.04, from 0.96 in 2015Q1. The ratio is positive, as 56 funds sold all their Lockheed Martin Corporation shares they owned while 360 reduced their positions. 95 funds bought stakes while 319 increased their total positions. Institutions now own 257.34 million shares which is 12.50% less than the previous share count of 294.10 million in 2015Q1.

Oakmont Corp holds 30.16% of its total portfolio in Lockheed Martin Corporation, equating to 1.12 million shares. Ruffer Llp owns 1.07 million shares representing 8.66% of their total US portfolio. Moreover, Majedie Asset Management Ltd has 8.32% of their total portfolio invested in the company, equating to 258,709 shares. The United Kingdom-based Artemis Investment Management Llp has a total of 5.97% of their portfolio invested in the stock. Keating Investment Counselors Inc, a Florida-based fund reported 50,390 shares owned.

Since April 27, 2015, the stock had 0 insider purchases, and 3 selling transactions for a total of $9.96 million in net activity. King Gwendolyn S sold 200 shares worth $41,316. Tanner Bruce L sold 32,000 shares worth $6.69M. Dewar Patrick M sold 15,453 shares worth $3.23 million. Akerson Daniel F bought 2,000 shares worth $380,318. The insider Hewson Marillyn A sold 45,700 shares worth $8.81 million.

Lockheed Martin Corporation is a global security and aerospace company. The company has a market cap of $67.59 billion. The Firm is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, services and products. It has 19.53 P/E ratio. The Firm operates in five divisions: Aeronautics, Information Systems & Global Solutions , Missiles and Fire Control (MFC), Mission Systems and Training (MST) and Space Systems.