John Donovan, a director at Lockheed Martin (LMT), recently added 556 shares to his holdings. That increased his stake by 31 percent, and came to a total cost just under $251,000.
The director was responsible for the last insider activity, with a 568 share buy back in October. Over the past year, the director has made four purchases. And one company vice president has been a seller of shares.
Overall, company insiders own 0.1 percent of shares.
The defense contractor is up 16 percent over the past year, handily beating the decline in the stock market over the same time. Shares surged following Russia’s invasion of Ukraine.
Revenues are up about 7 percent over the past year, and those revenues largely come from a steady flow of government contracts. Overall earnings have dropped in the last year, as the company has had to contend with rising costs.
Over the longer term, shares have been a steady outperformer for the overall market, making shares a buy for long-term investors on any big pullback.
Action to take: Shares are fairly valued at about 16 times earnings. Plus, the company has been a dividend growth player, with a starting yield of 2.6 percent at current prices.
For traders, shares will likely continue to trend higher. The June $500 calls, last going for about $9.30, can leverage a modest move higher into mid-double-digit returns in the months ahead.
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.