Lockheed Sikorsky deal marks turning point for more assertive CEO

According to data compiled by Thomson Reuters, Lockheed Martin Corporation (NYSE:LMT)’s stock is covered by 14 equity analysts across the Street, with 0 analysts giving it a Sell rating, 7 a Buy rating, while 11 consider it a Hold. Of those eighteen, six have a Buy rating, twelve have a Hold rating. The consensus target price stands at $212.5. Under the terms of the deal, United Technologies Corporation and Lockheed Martin will make a joint election (under Section 338(h) (10) of the Internal Revenue Code), to treat the transaction as an asset purchase for tax purposes. The purchase was disclosed in a legal filing with the SEC, which is available at this link.


“I’m confident this acquisition will help us extend our core business into the growing areas of helicopter production and sustainment”, says Marillyn Hewson, Lockheed Martin chairman, president, and CEO. The shares were sold at an average price of $192.75, for a total transaction of $8,808,675.00. The disclosure for this sale can be found here.

Shares of Lockheed Martin Corporation (NYSE:LMT) ended Wednesday session in red amid volatile trading. On a trailing twelve month basis, the company’s earnings per share stands at 11.08. The stock has a 50-day moving average of $192.27 and a 200-day moving average of $195.03. Value stocks often have a low price to book and price to earnings ratio.

“The strategic review is expected to result in a spin-off to Lockheed Martin shareholders or sale of these components”.

Lockheed separately reported Monday second-quarter net earnings of $929 million, up from $889 million in the year-ago quarter, with a sharp jump in cash from operations to $1.3 billion. The 18 analysts in average polled by Thomson Reuters anticipated the firm to release profit per share of $2.67 for the quarter. The most conservative analyst sees the stock heading towards $185, while the most bullish sees the stock reaching $255 within the year. During last 3 month period, 0.03% of total institutional ownership has changed in the company shares. Analysts expect that Lockheed Martin will post $11.23 EPS for the current fiscal year. Stockholders of record on Tuesday, September 1st will be paid a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a dividend yield of 2.95%. The ex-dividend date of this dividend is Friday, August 28th.

Lockheed Martin is now reviewing its options for its government information technology and technical services businesses, primarily in the Information Systems & Global Solutions business segment, and a portion of the Missiles and Fire Control business segment. One of the world’s leading providers of military aircraft, Lockheed’s current offerings include: the F-16 Fighting Falcon, the F-2 and the C-130J Super Hercules.


Lockheed’s IT programs not included in the review are focused on defense and intelligence, according to the company.

Lockheed Martin Corporation (NYSE:LMT), The Hartford Financial Services Group