Lockheed Martin Corporation (NYSE:LMT): An Opportunity for Fundamental Investors?

Lockheed Martin Corporation (NYSE:LMT) Relative Strength Index (RSI) is 52.32, with weekly volatility at 1.55% and ATR at 8.85. The LMT stock’s 52-week price range has touched low of $266.11 and a $442.53 high. Intraday shares traded counted 0.96 million, which was 13.92% higher than its 30-day average trading volume of 1.12M. Its shares traded higher over the last trading session, gaining 0.01% on 10/13/20. The shares fell to a low of $385.12 before closing at $388.95. LMT’s previous close was $388.92 while the outstanding shares total 279.80M. The firm has a beta of 0.96, a 12-month trailing P/E ratio of 17.04, and a growth ratio of 1.87.

Investors have identified the Aerospace & Defense company Lockheed Martin Corporation as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $109.48 billion, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

Lockheed Martin Corporation (LMT) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. For LMT, the company has in raw cash 2.85 billion on their books with 500.0 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on a decline. In terms of their assets, the company currently has 19570000000 million total, with 14888000000 million as their total liabilities.

LMT were able to record 3.86 billion as free cash flow during the third quarter of the year, this saw their quarterly net cash flow reduce by 1.34 billion. In cash movements, the company had a total of 4.5 billion as operating cash flow.

Potential earnings growth for Lockheed Martin Corporation (LMT)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the third quarter of the year, Lockheed Martin Corporation recorded a total of 16.22 billion in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 11.05% coming in sequential stages and their sales for the third quarter increasing by 3.51%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 14.01 billion trying to sell their products during the last quarter, with the result yielding a gross income of 2.21 billion. This allows shareholders to hold on to 279.80M with the revenue now reading 5.81 cents per share. This is a figure that is close to analyst’s prediction for their fourth quarter (5.71 cents a share).

Having a look at the company’s valuation, the company is expected to record 21.95 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on LMT sounds very interesting.

Is the stock of LMT attractive?

In related news, Executive Vice President, St John Frank A sold 556 shares of the company’s stock in a transaction that recorded on Feb 06. The sale was performed at an average price of 438.60, for a total value of 243,862. As the sale deal closes, the VP & Controller, Colan Brian P now sold 1,108 shares of the company’s stock, valued at 481,725. Also, Executive Vice President, Ambrose Richard F sold 6,905 shares of the company’s stock in a deal that was recorded on Jan 29. The shares were price at an average price of 435.52 per share, with a total market value of 3,007,282. Following this completion of acquisition, the SVP & General Counsel, Lavan Maryanne now holds 6,500 shares of the company’s stock, valued at 2,831,373. In the last 6 months, insiders have changed their ownership in shares of company stock by 0.07%.

12 out of 23 analysts covering the stock have rated it a Buy, while 9 have maintained a Hold recommendation on Lockheed Martin Corporation. 0 analysts has assigned a Sell rating on the LMT stock. The 12-month mean consensus price target for the company’s shares has been set at $435.95.