Lockheed Martin Stock Gets A Jolt From Trump’s One-Two Punch — But After-Hours Move Revives Bulls

LMT whipsawed after President Trump slammed defense dividend payouts, and then soothed markets with comments about a massive jump in U.S. military spending.

• Lockheed Martin shares closed down nearly 5% at $496.87, hitting its worst day since July last year on the initial remarks by Trump.
• The stock was up 6.3% in after-market trading on Wednesday, heading for its best day since Oct. 2023.
• Lockheed Martin produces defense equipment for the United States, including competitive integrated air and missile defense systems.

In a whirlwind day for defense and aerospace stocks, Lockheed Martin investors were caught in the crosscurrents of two separate comments from U.S. President Donald Trump — remarks that initially rattled the stock before easing some of those concerns.

In a post on Truth Social, Trump said defense contractors were issuing massive dividends and conducting large share buybacks at the “expense and detriment” of investment in plants and equipment. He added that such practices would no longer be allowed or tolerated.

Lockheed Martin shares closed down nearly 5% at $496.87, marking their worst session since July of last year. The sell-off followed Trump’s remarks criticizing what he called exorbitant executive pay in the defense industry, which he said was “unjustifiable given how slowly these companies are delivering vital equipment to our military and our allies.”

A Revival

However, a decision to boost the country’s military budget put some bounce back in Lockheed Martin’s stock, which jumped 6.3% in after-market trading. If those gains hold in the next session, LMT could be headed for its best day since Oct. 2023.

Just three hours after the initial post, Trump on Truth Social said that, after negotiations with senators, congressmen, secretaries, and other political representatives, the military budget for 2027 was increased to $1.5 trillion from $1 trillion.

The move comes amid America's capture of Venezuelan President Nicolas Maduro and the country taking the lead of the South American region and eyeing Greenland as its next military operation.

Trump was quick to note that the increase in the military budget was the result of tariffs that took effect on global trading partners last year. Lockheed Martin works on producing defense equipment for the United States, such as competitive integrated air and missile defense, strike, precision fires, air superiority and close combat weapon systems. The company also operates in the space sector, with national security, civil, commercial, and weather spacecraft, strategic and missile defense solutions, and hypersonic missions. 

What Is Retail Thinking?

Retail-trader sentiment on Lockheed Martin jumped to ‘extremely bullish’ from ‘bearish’ territory a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

In the last 24 hours, retail message volumes on Stocktwits for Lockheed Martin spiked by 346%. Its followers on the platform have grown by 15% in the past year.

A bullish user on Stocktwits said that trimming share buyback for defense companies could work, but a shareholder dividend termination will “NEVER.”

Shares of Lockheed Martin have gained nearly 6% in the last 12 months.

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