Valley National Advisers Cuts Lockheed Martin Stake by 29.7%

Valley National Advisers Inc. has reduced its stake in Lockheed Martin Corporation (NYSE: LMT) by 29.7% during the third quarter of 2023, as reported in a recent filing with the Securities and Exchange Commission. The institutional investor now holds 8,225 shares of the aerospace giant after selling 3,473 shares in the period. Lockheed Martin represents approximately 0.6% of Valley National Advisers’ total holdings, making it the firm’s 28th largest investment. At the end of the most recent quarter, the value of Valley National’s holdings in Lockheed Martin stood at around $4.11 million.

Several other institutional investors have also adjusted their positions in Lockheed Martin. Enzi Wealth entered the fray by acquiring a new stake valued at approximately $201,000 during the same quarter. Cahaba Wealth Management Inc. increased its holdings by 6.1%, now owning 539 shares worth $269,000 after an additional purchase of 31 shares. Perigon Wealth Management LLC grew its position by 13.7%, owning 17,850 shares valued at $8.91 million after acquiring an additional 2,155 shares. Paradiem LLC made a significant entry with a new position valued at around $16.13 million, while Sowell Financial Services LLC boosted its holdings by 8.5%, now owning 5,179 shares valued at approximately $2.59 million. Overall, hedge funds and institutional investors collectively own 74.19% of Lockheed Martin’s stock.

Analyst Outlook and Stock Performance

Lockheed Martin has attracted interest from analysts, with various firms revising their price targets. Truist Financial increased its target from $440.00 to $500.00 while maintaining a “hold” rating as of October 15. The Goldman Sachs Group raised its price objective from $398.00 to $425.00 but assigned a “sell” rating in its report on October 10. Weiss Ratings affirmed a “hold” rating, and Deutsche Bank Aktiengesellschaft reduced its target price from $517.00 to $492.00, also rating it as a “hold.”

As of now, analysts have given Lockheed Martin a consensus rating of “Hold” with an average target price of $506.67. The stock opened at $483.14 on Friday, with a fifty-two week low of $410.11 and a high of $516.00. The company has a market capitalization of $111.80 billion and a price-to-earnings ratio of 26.98.

Lockheed Martin reported its quarterly earnings on October 21, revealing earnings per share of $6.95, exceeding the consensus estimate of $6.33 by $0.62. The company’s revenue for the quarter was $18.61 billion, surpassing the expected $18.45 billion. This represents an 8.8% increase in revenue compared to the same quarter last year, when the company reported $6.84 earnings per share. Lockheed Martin has set guidance for fiscal year 2025 at between $22.150 and $22.350 earnings per share.

Dividend Increase and Insider Activity

The company has also announced an increase in its quarterly dividend, which will be paid on December 30. Shareholders of record on December 1 will receive a dividend of $3.45 per share, translating to an annualized dividend of $13.80 and a yield of 2.9%. This marks an increase from the previous quarterly dividend of $3.30, with the ex-dividend date set for December 1. Lockheed Martin’s dividend payout ratio currently stands at 77.05%.

In related news, Chief Operating Officer John Frank A. St sold 7,792 shares on October 23 at an average price of $491.04, totaling $3.83 million. Following this transaction, he retains only 1 share in the company, valued at approximately $491.04. This sale represents a significant decrease in his ownership stake. Currently, corporate insiders hold 0.14% of Lockheed Martin’s stock.

Lockheed Martin Corporation, established through the merger of Lockheed Corporation and Martin Marietta in 1995, is headquartered in Bethesda, Maryland. The company specializes in advanced technology systems for government and commercial clients, with a focus on military aircraft, missile systems, and space technologies. Its primary customers include the U.S. Department of Defense, NASA, and allied governments worldwide.