Insider Trading Report: Lockheed Martin (LMT)

Cruise Missile

John Donovan, a director at
Lockheed Martin (LMT), recently bought 506 shares. The buy increased his holdings by 22 percent, and came to a total purchase price of $250,556.

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  • This adds to the 556 shares the director bought back in January… and on 4 other occasions over the past year. These mark the only buys at the company. A number of insiders have been moderate sellers of shares over the past year, including Lockheed’s Treasurer and the company COO.

    Overall, insiders own just under 0.1 percent of shares.

    Lockheed is up over 12 percent in the past year, thanks to a strong demand for defense contractors and geopolitical fears following Russia’s invasion of Ukraine.

    Shares are still reasonably valued at 18 times forward earnings. Defense spending looks set to continue to grow at a steady pace, and the aerospace defense contractor is a leader in the sector.
    Action to take: Investors may like Lockheed shares at current prices or on any dip. At present, shares yield 2.4 percent, and Lockheed has a history of raising its dividends over time.

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  • For traders, shares have been somewhat rangebound over the past few months. There could be a short-term pullback if that range-trade holds.

    The September $450 calls, last going for about $11.40, could deliver mid-double-digit returns on a decline in shares in the coming months. Traders should look to take a quick profit rather than hold the puts until expiration.

     
    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.