John Donovan, a director at Lockheed Martin (LMT), recently added 548 shares. The buy increased his holdings by 19 percent, and came to a total cost of $250,476.
The director bought 508 shares in April, also valued at about $250,000, and twice more over the prior two quarters before that. Otherwise, company insiders have largely been small sellers of shares, concentrated at the EVP level of the firm.
Overall, insiders at the defense contractor own about 0.1 percent of shares.
Lockheed shares are slightly down over the past year. The stock has now dropped 10 percent from its recent peak back in April, signaling a correction. Shares soared early last year, following Russia’s invasion of Ukraine.
Following the recent drop, shares are now valued at about 18 times earnings, a slight discount to the overall market.
Action to take: Investors may like shares as a buy under $450. Besides being about 10 percent off the recent highs, Lockheed is a dividend payer with a 2.6 percent yield here. That payout is likely to grow over time.
For traders, a rebound following the price correction is likely in the coming months. The January $500 calls, last going for about $5.10, could see mid-double-digit gains on a bounce higher.
Disclosure: The author of this article has no position in the company mentioned here, but may trade after the next 72 hours. The author receives no compensation from any of the companies mentioned in this article.