New York, January 9, 2026, 18:50 (EST) — After-hours
- Lockheed Martin shares ended up 4.7% at $542.92, near the top of their recent range
- Truist upgraded the stock to “Buy” and lifted its price target to $605
- Investors are weighing Trump’s move to tie dividends and buybacks to delivery schedules ahead of Jan. 29 earnings
Lockheed Martin Corp (LMT) shares rose 4.7% to $542.92 on Friday, extending a rebound in U.S. defense stocks after Truist upgraded the company to “Buy.” (Wall Street Journal)
The move matters now because Washington has put shareholder payouts in the firing line. President Donald Trump has pledged to block dividends and share buybacks — where companies repurchase their own stock — at defense contractors until they speed up weapons production, a stance that can reshape how investors value the group. (Reuters)
Defense names have swung sharply as traders try to net out two signals: tougher oversight on capital returns versus talk of a much larger Pentagon budget. RBC Capital Markets analysts led by Ken Herbert said a potential jump in spending could offset the hit to sentiment from payout limits, but warned there was “significant uncertainty” around a final budget. (Reuters)
Truist analyst Michael Ciarmoli raised his price target on Lockheed to $605 from $500, pointing to better execution and the prospect of sustained demand tied to global tensions. He also argued the stock’s valuation had lagged peers after a weak 2025. (Barron’s)
Company headlines have stayed busy. Lockheed said this week it delivered a record 191 F-35 fighter jets in 2025, up from 110 in 2024, and noted the program accounts for roughly a third of company revenue. (Reuters)
But the policy risk is not theoretical. A White House spokeswoman said the executive order means “the days of defense contractors prioritizing investor returns over military readiness are over,” while a federal contracting lawyer warned contractors could face withheld payments or terminations if the government leans on the tools it already has. Lockheed, for its part, said it shared the administration’s focus on “speed, accountability, and results.” (Reuters)
Trump’s order says contractors cannot pay dividends or buy back stock until they can deliver “on time and on budget,” and it gives the Pentagon chief 30 days to identify underperformers and demand remediation plans. It also directs the SEC to consider rules that would support the approach. (Reuters)
Lockheed also flagged smaller contract work. Derco, a Lockheed Martin company, said it won a Defense Logistics Agency contract to support C-130 aviation consumables under a performance-based logistics model, with Derco president Kathy Medalle calling it a “testament” to the relationship. (Media – Lockheed Martin)
On the chart, the stock is pressing the top of its 52-week band. It traded in the mid-$520s to mid-$540s on Friday and sits near a 52-week high around $546, with the low near $410, levels that short-term traders often treat as resistance and support. (Bloomberg)
Next up is earnings. Lockheed is due to report fourth-quarter and full-year 2025 results before the market opens on Jan. 29, with a conference call set for 8:30 a.m. ET — an event likely to draw outsized focus on cash flow and any read-through on dividends and buybacks under the new U.S. contracting stance. (Media – Lockheed Martin)
