Lockheed Martin Corp. (LMT stock) price is up by 1.07% and is wobbling due to a debt ceiling rise & a cut in defense spending. 75% of its business comes from the defense market, and 76% of its ownership is with institutional investors. What does this scenario mean for the investors?
Lockheed Martin Corp. (LMT Stock Price) – Financial Turbulence Anatomy
Recently, the United States passed a landmark bill raising the debt ceiling. Although it was a relief for the economy, a cut in federal spending would affect Lockheed’s defense business. The debt deal left around $886 Billion to be spent on national security, and the company can only hope to get the lion’s share.
Around 76% of LMT stocks are owned by institutional investors, and 15 investors own 51% of the company. As most business comes from defense, a massive portion of institutional money comes with a vote of confidence. A scenario that could affect its financials, as getting enough votes for an investment could be a more challenging task.
Recently, a joint venture between Raytheon and Lockheed Martin Javelin secured a $11.8 Million modification contract with the U.S. Army. Also, Lockheed Martin Space won a $39.9 Million modification contract with the U.S. Air Force regarding the Space Based Infrared System.
Consecutively, Lockheed Martin Missiles and Fire Control were awarded a $240 Million U.S. Air Force Contract for the joint development of Air-to-Surface Standoff Missile AGM-158D development. Considering these recent contracts, the cash flow is supposed to increase, raising the LMT stock price.
At press time, LMT stock is trading at $454.49, with a hike of 1.07%. Previous close and open were at $449.67 and $452.12, respectively. The 52-week change comes with a rise of 2.50%. With an average volume of 1.32 Million shares, the market cap stays strong at $115.101 Billion. Analysts provided a 2.20 rating for HOLD, placing the price target at $494.79 with an 8.9% upside.
The last earnings report by the aerospace company was released on April 18, 2023, with a reported revenue of $15.126 Billion. While it was estimated to be $15.041 Billion, this brings the surprise to $85.1 Million and a jump of 0.57%. Basic Earnings Per Share (EPS) is reported to be $21.96, while the price-to-earnings ratio is 20.56.
Regarding the quarterly change in March 2023 data, revenue increased by 1.08% to $15.13 Billion. The trailing twelve-month (ttm) revenue is $66.15 Billion, revenue per share is $254.11, and quarterly revenue growth (YoY) is 1.10%. Also, the operating expenses jumped by 39.47% to minus $115.00 Million, and the operating margin gained 11.39% (ttm).
Total cash in hand at the end of the recent quarter is $2.44 Billion, while debt in the same time-lapse is $15.6 Billion. EBITDA gained 2.39% to $2.49 Billion, while the yearly figure is $8.86 Billion.
Lockheed Martin Corp. (LMT Stock) – Candle Exploration
LMT stock price seems to be crossing EMA; if it manages, the share price might intersect R1 and try to break through R2. If the price action is strong enough to break through R1, it might consolidate for a while before breaking the R2 barrier. Also, a weaker activity could make the price wobble between R1 and S1 for some time.
A weaker price action could drop the price but bounce off S1 and consolidate. But if it breaks S1, S2 would be the following line of defense for the defense contractor aerospace company.
Disclaimer:
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/06/03/lockheed-martin-corp-lmt-stock-wobbling-due-to-debt-deal/