Lockheed Martin Sees Another $250K Insider Purchase

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Insider transaction activity can help investors cut through the data overload. Insiders are some of the most informed participants in the market meaning their stock purchases and sales can provide investors with valuable trading signals.

In this report, we are going to highlight some interesting legal insider trading activities at Lockheed Martin Corp (LMT:US). Lockheed Martin is an American security and aerospace company that is engaged in the research, design, and development of advanced technology systems, products, and services. The business, which is headquartered in Bethesda, Maryland, is organized around four core business areas: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. It’s listed on the New York Stock Exchange and currently has a market cap of approximately $118.01 billion.

Insider Buying at Lockheed Martin

2iQ data shows that on January 25, Lockheed director John Donovan purchased 556 LMT shares at a price of $451.20 per share. This trade cost the insider approximately $251,000 and increased his holding to 2,324 shares.

Building a Sizable Position

Mr. Donovan – who has served on the board since October 2021 – appears to be intent on building up a sizable position in Lockheed Martin. We say this because he also bought company stock in October, July, and April of 2022. In total, he has invested approximately $1 million in the company since April 21, 2022. Clearly, he sees some value in the stock at current levels.

It’s worth noting that Mr. Donovan, who was previously CEO of AT&T, has some experience in the security industry. Currently, he is Chair of the President’s National Security Telecommunications Advisory Committee (NSTAC). He also serves on the board of Palo Alto Networks.

Solid Q4

Lockheed Martin recently posted a solid set of Q4 results, helped by a generous defense budget.

For the quarter, net sales came in at $18.99 billion, above analysts’ forecast of $18.27 billion. Meanwhile, adjusted net income was $7.79 per share, above the consensus forecast of $7.39 per share.

Looking ahead, the company’s guidance for 2023 was a little underwhelming due to lingering supply chain issues and higher costs.

However, it noted that its backlog at the end of 2022 was $150 billion – 11% higher than a year earlier. And management believes this backlog will set the group up well for growth in the medium term, stating that it is tracking toward its objective of growth resumption in 2024.

In light of the growing backlog here, we see this insider buying as a bullish signal.