Lockheed Martin Stock Dips on Bearish Analyst Attention

Core Viewpoint - Lockheed Martin Corp (NYSE:LMT) stock has declined by 2.8% to $427.50 following downgrades from BofA Global Research and Melius Research, which changed their ratings to "neutral" and "hold" from "buy" respectively, and reduced the price target from$685 to $485 [1] Group 1: Analyst Ratings and Market Sentiment - Despite recent downgrades, 12 out of 22 analysts still rate LMT as a "buy" or better, with a 12-month consensus target price of$532.09, indicating a 23.5% premium over current levels [2] - The recent downgrades and price target cuts may lead to further downward pressure on Lockheed Martin's stock [2] Group 2: Stock Performance and Technical Analysis - LMT is trading below its 20-day moving average, which previously supported the stock during a failed attempt to surpass the $500 mark earlier this month [3] - The stock is on track for its third consecutive daily loss and has decreased by more than 26% over the past six months [3] Group 3: Options Market Activity - There is significant activity in the options market, with 3,217 calls and 1,181 puts traded, which is three times the typical volume for this time [3] - The most popular options contract is the weekly 3/28 450-strike call, indicating new positions are being opened [3] Group 4: Volatility and Performance Metrics - Defense stocks, including Lockheed Martin, have historically outperformed options traders' volatility expectations, as indicated by a Schaeffer's Volatility Scorecard (SVS) score of 97 out of 100 [4]