Lockheed Martin Shares Surge 2.7% After New Military Contracts Announced
Lockheed Martin shares jumped by 2.7% during Friday’s trading session, reaching approximately $659. The surge in share price was accompanied by a trading volume that was 34% above the average, with about 2.59 million shares exchanging hands.
Key Military Contracts Announced
The spike in Lockheed Martin’s shares followed two significant announcements regarding military contracts. The U.S. Army successfully completed prototype testing for the Next Generation Command and Control (NGC2) platform. This advanced system integrates sensor data with weapon systems, enhancing operational efficiency.
- Scheduled additional testing for the NGC2 platform is set for April 2026 as part of the “Lightning Surge 3” exercise.
- Lockheed Martin received an $18.8 million modification contract from the U.S. Navy. This supports the Trident II (D5) Life Extension 2 initiative and extends work through August 2030.
Financial Performance Report
In its latest report, Lockheed Martin posted fourth-quarter revenue of $20.32 billion, surpassing analyst expectations of $19.84 billion. This represents a 9.1% increase compared to the same quarter last year.
However, earnings per share fell below expectations. The company reported EPS of $5.80, missing the consensus estimate of $6.33.
Market Outlook and Analyst Revisions
Analysts have positively adjusted their price targets in light of Lockheed’s strong performance. Notable changes include:
- Citigroup raised its target from $592 to $673.
- RBC Capital Markets increased its projection from $615 to $650.
- Robert W. Baird now targets $640, maintaining an “outperform” rating.
Lockheed Martin currently has a market capitalization of $151.68 billion, a price-to-earnings ratio of 30.68, and a steady dividend initiative. The company announced a quarterly dividend of $3.45, payable on March 27 to shareholders recorded by March 2, yielding approximately 2.1% annually.
Stock Performance Overview
Lockheed Martin’s shares have increased by over 31% since the start of the year, approaching record highs. The company’s institutional ownership sits at 74.19%, contributing to its robust trading activity.
