Lockheed Martin (LMT) stock took a beating on Wednesday after the Pentagon reportedly cut its F-35 jet orders in half this year. The latest reports claim that the Air Force has only requested 24 of these jets from the aerospace and defense company, compared to 48 last year.
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It’s not just the Air Force that wants fewer of Lockheed Martin’s F-35 jets. The reports also claimed that the Navy has only requested 12 jets, despite approval for 17 of them. The Marines are also expected to seek fewer of the jets this year.
This is bad news for Lockheed Martin stock, as the F-35 business make up roughly 30% of the company’s revenue. Strong demand in 2024 resulted in 110 units being sold, but lower orders from the U.S. will likely cut into the company’s revenue this year.
LMT Stock Movement Today
The reports of reduced F-35 requests weighed on LMT stock today, sending the company’s shares 6.04% lower as of this writing. This builds on the stock’s 6.42% decline year-to-date and eats away at its 3.87% increase over the past 12 months.
LMT stock also saw heavy trading today, with more than 1.42 million shares exchanged. That’s above its three-month daily average trading volume of about 1.22 million units, signaling a potential selloff by investors.
Is Lockheed Martin Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Lockheed Martin is Moderate Buy, based on seven Buy and eight Hold ratings over the past three months. With that comes an average LMT stock price target of $521.07, representing a potential 16.05% upside for the shares.
Spark, TipRanks’ AI analyst, rates Lockheed Martin an Outperform (77) with a $532 price target, suggesting an 18.55% upside for LMT shares. It cites “consistent revenue growth and strong cash flow management” as positives for the stock.
See more LMT stock analyst ratings
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