On February 7, 2023, Credit Suisse upgraded their outlook for Lockheed Martin from Underperform to Outperform.

Analyst Price Forecast Suggests 4.56% Upside

As of February 7, 2023, the average one-year price target for Lockheed Martin is $490.48. The forecasts range from a low of $335.32 to a high of $585.90. The average price target represents an increase of 4.56% from its latest reported closing price of $469.10.

The projected annual revenue for Lockheed Martin is $66,400MM, an increase of 0.63%.

The projected annual EPS is $27.30, an increase of 25.60%.

Lockheed Martin Declares $3.00 Dividend

Lockheed Martin said on January 26, 2023 that its board of directors declared a regular quarterly dividend of $3.00 per share ($12.00 annualized). Shareholders of record as of February 28, 2023 will receive the payment on March 24, 2023. Previously, the company paid $3.00 per share.

At the current share price of $469.10 / share, the stock’s dividend yield is 2.56%.

Looking back five years and taking a sample every week, the average dividend yield has been
2.69%, the lowest has been 2.18%, and the highest has been 3.59%. The standard deviation of yields is 0.28 (n=236).

The current dividend yield is 0.48 standard deviations below the historical average.

Additionally, the company’s dividend payout ratio is 0.53. The payout ratio tells us how much of a company’s income is paid out in dividends. A payout ratio of one (1.0) means 100% of the company’s income is paid in a dividend. A payout ratio greater than one means the company is dipping into savings in order to maintain its dividend – not a healthy situation. Companies with few growth prospects are expected to pay out most of their income in dividends, which typically means a payout ratio between 0.5 and 1.0. Companies with good growth prospects are expected to retain some earnings in order to invest
in those growth prospects, which translates to a payout ratio of zero to 0.5.

The company’s 3-Year dividend growth rate is 0.25%, demonstrating that it has increased its dividend over time.

What are large shareholders doing?

Capital World Investors holds 12,378,039 shares representing 4.85% ownership of the company. In its prior filing, the firm reported owning 13,597,055 shares, representing a decrease of 9.85%. The firm decreased its portfolio allocation in LMT by 13.56% over the last quarter.

VTSMX – Vanguard Total Stock Market Index Fund Investor Shares holds 7,910,610 shares representing 3.10% ownership of the company. In its prior filing, the firm reported owning 7,837,167 shares, representing an increase of 0.93%. The firm decreased its portfolio allocation in LMT by 5.47% over the last quarter.

Charles Schwab Investment Management holds 5,466,544 shares representing 2.14% ownership of the company. In its prior filing, the firm reported owning 5,146,227 shares, representing an increase of 5.86%. The firm decreased its portfolio allocation in LMT by 1.77% over the last quarter.

VFINX – Vanguard 500 Index Fund Investor Shares holds 5,349,681 shares representing 2.10% ownership of the company. In its prior filing, the firm reported owning 5,241,947 shares, representing an increase of 2.01%. The firm decreased its portfolio allocation in LMT by 5.19% over the last quarter.

Geode Capital Management holds 4,375,829 shares representing 1.71% ownership of the company. In its prior filing, the firm reported owning 4,310,104 shares, representing an increase of 1.50%. The firm decreased its portfolio allocation in LMT by 5.42% over the last quarter.

Fund Sentiment

There are 3237 funds or institutions reporting positions in Lockheed Martin. This is an increase of 31 owner(s) or 0.97%. Average portfolio weight of all funds dedicated to US:LMT is 0.5650%, an increase of 0.2981%. Total shares owned by institutions decreased in the last three months by 1.84% to 225,415K shares.

Lockheed Martin Background Information
(This description is provided by the company.)

Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 114,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.

This article originally appeared on Fintel

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