Lockheed Martin Corporation (NYSE:LMT) announced that its Information Systems & Global Solutions (IS&GS) segment will reduce its workforce by approximately 500 positions by mid-November 2015. This action is in response to shifting government priorities, changing industry dynamics and efforts to improve IS&GS’ competitiveness.
Lockheed Martin announced in July 2015 that it would conduct a strategic review of its government IT and technical services businesses, primarily in the IS&GS business segment. The layoffs, while unrelated to the review, are part of a larger effort to optimize IS&GS’ resources and align them to customers’ existing needs and the business climate.
The workforce reduction includes voluntary and involuntary layoffs.
“We made these difficult decisions as part of our efforts to remain competitive in an extremely challenging environment where industry dynamics have shifted, customer budgets are constrained and competition has continued to escalate,” said Sondra Barbour, executive vice president of Lockheed Martin IS&GS. “Continuing to reduce our overhead costs, is expected to enable us to be a much leaner and more agile organization which is what is needed to compete effectively.”
“I understand the impact that this announcement will have on our employees,” Barbour added. “This is not a decision that was made lightly and Lockheed Martin remains committed to its employees and in positioning the business for future success.” (Original Source)
Shares of Lockheed Martin closed yesterday at $207.01. LMT has a 1-year high of $213.34 and a 1-year low of $166.28. The stock’s 50-day moving average is $204.73 and its 200-day moving average is $195.75.
On the ratings front, Lockheed Martin has been the subject of a number of recent research reports. In a report issued on August 20, Sterne Agee CRT analyst Peter Arment upgraded LMT to Buy, with a price target of $252, which represents a potential upside of 21.7% from where the stock is currently trading. Separately, on August 19, Citigroup’s Timothy Thein maintained a Buy rating on the stock and has a price target of $232.
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Peter Arment and Timothy Thein have a total average return of 10.0% and 1.9% respectively. Arment has a success rate of 62.5% and is ranked #556 out of 3752 analysts, while Thein has a success rate of 50.0% and is ranked #2110.
Overall, 3 research analysts have assigned a Hold rating and 3 research analysts have given a Buy rating to the stock. When considering if perhaps the stock is under or overvalued, the average price target is $224.40 which is 8.4% above where the stock closed yesterday.
Lockheed Martin Corp is a security and aerospace company. The Company isengaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.