TLDR Trump initially proposed canceling dividends and stock buybacks for defense contractors, causing Lockheed Martin stock to drop nearly 5% on Wednesday The PresidentTLDR Trump initially proposed canceling dividends and stock buybacks for defense contractors, causing Lockheed Martin stock to drop nearly 5% on Wednesday The President

Lockheed Martin (LMT) Stock: Trump Posts Send Investors on Roller Coaster

TLDR

  • Trump initially proposed canceling dividends and stock buybacks for defense contractors, causing Lockheed Martin stock to drop nearly 5% on Wednesday
  • The President criticized defense companies for prioritizing shareholder returns over equipment production and facility investment
  • Defense stocks plummeted during regular trading hours after Trump’s social media posts on Truth Social
  • Trump later announced plans for a $1.5 trillion defense budget for 2027, up from the previously discussed $1 trillion
  • After-hours trading saw Lockheed Martin stock surge 7% following the higher budget announcement, reversing the day’s losses

Lockheed Martin found itself on a wild ride Wednesday as conflicting messages from President Trump sent the stock through dramatic swings.

The defense contractor’s shares fell almost 5% during regular trading. The drop came after Trump posted on Truth Social criticizing defense companies for their dividend and buyback programs.

Lockheed Martin wasn’t alone in the selloff. Other defense stocks including Northrop Grumman, General Dynamics, RTX Corporation, and Huntington Ingalls all dropped during the session.


LMT Stock Card
Lockheed Martin Corporation, LMT

The sector-wide rout reflected investor concern about potential restrictions on how defense companies manage their capital. Trump suggested these firms should reinvest profits rather than borrowing from financial institutions or receiving government money.

Budget Announcement Reverses Losses

The story took a sharp turn during after-hours trading. Trump posted new messages proposing a $1.5 trillion defense budget for 2027.

This figure represents a major increase from the previously discussed $1 trillion budget. The announcement triggered a quick reversal in defense stock prices.

Lockheed Martin jumped 7% in after-hours trading. Northrop Grumman gained 4%, while General Dynamics climbed 4.6%.

RTX Corporation added 2% and Huntington Ingalls increased 2%. The rally erased most of the day’s losses for these companies.

Questions About Implementation

Trump doesn’t have unilateral power to ban dividends or stock buybacks. Such measures would likely face resistance from company executives, shareholders, and politicians on both sides of the aisle.

The dramatic back-and-forth in stock prices shows how sensitive the defense sector is to policy statements from the incoming administration. Investors struggled to interpret the mixed messages from Trump’s social media posts.

Lockheed Martin closed regular trading at $496.87. The stock trades with a market cap of $115 billion and a dividend yield of 2.69%.

The company’s trading volume hit 4.5 million shares on Wednesday, well above its average daily volume of 1.4 million shares.

The post Lockheed Martin (LMT) Stock: Trump Posts Send Investors on Roller Coaster appeared first on CoinCentral.

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