Locking in a Slice of Big Gains on Strength
Here’s why the portfolio will continue to own a sizable position of this high-flying defense stock.
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| Symbol | Transaction Type | # Shares Traded | Recent Price $ | Shares Owned After Trade | % Portfolio |
|---|---|---|---|---|---|
LMT | Sell | 48 | 546 | 282 | 3.6 |
After you receive this Alert, we will sell 48 shares of Lockheed Martin LMT at or near $546. Following the trade, LMT shares will account for roughly 3.6% of the portfolio.
While the market is recapturing some of its lost ground, which has led to a nice move in the portfolio’s newest position in Meta Platforms META, we are making a prudent move with Lockheed Martin.
Following the company’s June-quarter results, which confirmed the resumption of F-35 deliveries, LMT shares have rocketed higher to the current level, from around $460 just a few weeks ago. A move of that magnitude is impressive, but as we can see in the chart below, it also has LMT shares meaningfully overbought. We could discuss the larger gain in LMT since they bottomed below $420 in April, but why split hairs?
Because Lockheed’s business will benefit from a larger number of F-35 deliveries in 2025 compared to the number in H2 2024, we will keep a meaningful position in the portfolio to capture that incremental upside. We’ve previously talked about how we recognize our price target of $540 will need to be revised higher and that degree of that adjustment will hinge on Lockheed’s updated 2025 and beyond delivery schedule.
Making this move will add some additional cash to the portfolio's war chest as we continue to look for other opportunities on our shopping list.
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(Please note that we are looking to execute these trades at or near the share price mentioned above. Once the trade is completed, subscribers can see the trade's executed price here. Be sure to toggle the chart to sort by Purchase Date.)
At the time of publication, TheStreet Pro portfolio was long LMT and META.
