Stock Repurchase Program Initiated by Lockheed Martin (NYSE:LMT) Board of Directors

Lockheed Martin (NYSE:LMT) declared that its Board of Directors has authorized a share repurchase plan on Thursday, September 23rd, RTT News reports. The company plans to repurchase $5.00 billion in shares. This repurchase authorization allows the aerospace company to buy up to 5.3% of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board believes its stock is undervalued.

Several research analysts have commented on the stock. Credit Suisse Group reiterated a “neutral” rating and set a $370.20 price target (down previously from $394.00) on shares of Lockheed Martin in a report on Tuesday, July 27th. Wells Fargo & Company upped their price objective on shares of Lockheed Martin from $384.00 to $385.00 and gave the stock an “equal weight” rating in a research report on Tuesday, July 27th. The Goldman Sachs Group downgraded shares of Lockheed Martin from a “buy” rating to a “neutral” rating and set a $402.00 price objective for the company. in a research report on Thursday. Finally, Jefferies Financial Group restated a “neutral” rating on shares of Lockheed Martin in a research report on Friday, September 10th. Six equities research analysts have rated the stock with a hold rating and two have issued a buy rating to the company. According to MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $401.03.

Lockheed Martin stock opened at $344.20 on Friday. Lockheed Martin has a 12 month low of $319.81 and a 12 month high of $396.99. The company has a fifty day moving average price of $359.36 and a two-hundred day moving average price of $371.45. The company has a debt-to-equity ratio of 1.79, a current ratio of 1.36 and a quick ratio of 1.15. The company has a market cap of $95.31 billion, a PE ratio of 13.49, a P/E/G ratio of 3.23 and a beta of 0.98.

Lockheed Martin (NYSE:LMT) last issued its quarterly earnings results on Sunday, July 25th. The aerospace company reported $6.52 earnings per share for the quarter, missing the Zacks’ consensus estimate of $6.53 by ($0.01). Lockheed Martin had a return on equity of 123.35% and a net margin of 10.69%. The company had revenue of $17.03 billion during the quarter, compared to analysts’ expectations of $16.93 billion. During the same period in the prior year, the business posted $5.79 EPS. The company’s revenue for the quarter was up 5.0% compared to the same quarter last year. Equities research analysts anticipate that Lockheed Martin will post 23.45 earnings per share for the current year.

The company also recently declared a quarterly dividend, which will be paid on Monday, December 27th. Stockholders of record on Wednesday, December 1st will be issued a dividend of $2.80 per share. This represents a $11.20 annualized dividend and a dividend yield of 3.25%. This is a positive change from Lockheed Martin’s previous quarterly dividend of $2.60. Lockheed Martin’s payout ratio is currently 41.87%.

About Lockheed Martin

Lockheed Martin Corp. operates as a global security and aerospace company, which engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. It operates through the following business segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space.

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