Lockheed Martin (NYSE: LMT) Shares Down 0.5% - Time to Sell?

Lockheed Martin Stock Performance

In recent trading, Lockheed Martin (NYSE: LMT) shares have fallen by 0.5%, decreasing from $464.45 to $462.48. This decline follows a broader market trend, as the S&P 500 index has also decreased by 0.2% during the same period.

Reasons for the Decline

Several factors may have contributed to the decline in Lockheed Martin's stock price. One potential reason is concerns about the company's exposure to defense spending cuts. The Biden administration has proposed reducing the Pentagon's budget by 4%, which could impact Lockheed Martin's revenue. Additionally, the ongoing COVID-19 pandemic has created uncertainty in the global economy. Investors may be concerned about the potential impact of the pandemic on Lockheed Martin's supply chain and operations.

Is it Time to Sell?

Whether or not it is time to sell Lockheed Martin shares depends on several factors, including an investor's individual risk tolerance and investment goals. Those who are concerned about the potential impact of defense spending cuts or the COVID-19 pandemic may consider selling their shares. However, it is important to note that Lockheed Martin is a well-established company with a long history of profitability. The company has a strong backlog of orders and is expected to continue to benefit from increased demand for defense products. As such, investors with a long-term perspective may choose to hold onto their Lockheed Martin shares.

Conclusion

The recent decline in Lockheed Martin's stock price is likely due to concerns about defense spending cuts and the COVID-19 pandemic. Whether or not it is time to sell depends on individual investor circumstances and risk tolerance. Investors with a long-term perspective may choose to hold onto their shares, while those who are concerned about potential risks may consider selling.