What happened
LVM Capital Management disclosed a sale of 23,240 shares of Lockheed Martin(LMT 0.69%), reducing its holding to 10,650 shares valued at $4.93 million. The transaction, worth $10.57 million (rounded from $10,571,975.18), was reported in a July 2, 2025 SEC filing (link). The position now makes up 0.51% of the fund’s $964 million in reportable U.S. equities.
What else to know
The sale reduced Lockheed Martin’s share of the fund’s 13F assets from 1.61% to 0.51%.
Top five holdings after the filing:
Microsoft(MSFT 0.39%): $87.0 million (9.0% of AUM)
Apple(AAPL -0.59%): $79.4 million (8.2% of AUM)
Broadcom(AVGO -0.33%): $73.9 million (7.7% of AUM)
Eli Lilly(LLY 0.34%): $39.6 million (4.1% of AUM)
AbbVie(ABBV -1.31%): $31.1 million (3.2% of AUM)
The stock offers a 2.8% dividend yield, and trades at a forward price/earnings ratio of 17.2.
Lockheed Martin’s 5-year revenue CAGR is 3.5%. The stock is 24.5% below its 52-week high.
Lockheed Martin overview
| Metric | Value |
|---|---|
| Market capitalization | $109.9 billion |
| Trailing-twelve-month revenue | $71.8 billion |
| Trailing-twelve-month net income | $5.5 billion |
| Dividend yield | 2.8% |
Company snapshot
Provides advanced aerospace and defense products, including combat aircraft, missile systems, helicopters, space systems, and integrated mission solutions.
Generates revenue primarily through long-term government contracts for research, development, manufacturing, and sustainment of complex defense and security systems.
Serves the U.S. government as its principal customer, with additional sales to international governments via U.S. foreign military sales programs.
Lockheed Martin is a leading global defense contractor, operating at scale with a diversified portfolio across aeronautics, missiles, rotary systems, and space technology. The company leverages deep expertise in advanced engineering and integrated systems to address critical national security needs.
Foolish take
Given the extent of geopolitical conflict in the world and President Trump's $1.01 trillion defense budget request for 2026, it should be all systems go for defense companies like Lockheed Martin.
However, the company has had a challenging year. First, it lost out to Boeing over the Next-Generation Air Dominance contract, and will not protest the decision. Second, a senior military official said on a recent background briefing on the proposed 2026 defense budget that "F-35 procurement is reduced from 74 to 47 aircraft while maintaining minimum production rates." That's a blow to Lockheed Martin's F-35 program.
It's hard not to think the two issues are connected, as the F-35 program has been dogged by cost overruns, delivery delays, most notably due to a technology refresh (known as TR3) that caused significant delays, and a backlog of undelivered jets.
As such, the reduction in LVM Capital Management's position may reflect a lack of confidence in Lockheed Martin's ability to deliver in its core competency.
Glossary
13F AUM: The total value of U.S. equity securities a fund manager reports quarterly to the SEC on Form 13F.
SEC filing: A formal document submitted to the U.S. Securities and Exchange Commission to disclose financial or ownership information.
Dividend yield: Annual dividends paid by a company as a percentage of its current share price.
Forward price/earnings ratio: A valuation metric comparing a company's current share price to its expected future earnings per share.
CAGR (Compound Annual Growth Rate): The annualized growth rate of a value over a specified period, assuming compounding.
Trailing-twelve-month: Refers to a company's financial performance over the most recent 12 consecutive months.
Top holdings: The largest investments held by a fund, typically representing the greatest proportion of its assets.
Reportable U.S. equities: U.S. stocks that institutional investors must disclose in SEC filings, such as Form 13F.
Foreign military sales programs: U.S. government-authorized sales of defense equipment and services to allied foreign governments.
Integrated mission solutions: Comprehensive systems that combine hardware, software, and services to fulfill complex defense or aerospace objectives.
Position size: The proportion of a specific investment relative to the total assets managed by a fund.
Defense contractor: A company that provides products or services to military or government defense agencies.
