What happened
According to a filing with the Securities and Exchange Commission dated October 17, 2025, financial advisory company Paradiem, LLC reported a new position in Lockheed Martin (LMT 0.40%), purchasing 32,302 shares. The estimated value of the trade, based on the quarterly average price, was approximately $16.13 million for Q3 2025. This addition brings the fund’s total reportable U.S. equity holdings to 68 positions.
What else to know
This was a new position for Paradiem, representing 3.76% of its reportable U.S. equity assets under management as of September 30, 2025.
Top holdings after the filing:
- NASDAQ:LRCX: $27.44 million (6.4% of AUM) as of September 30, 2025
- NYSE:TEL: $19.53 million (4.55% of AUM) at the end of Q3 2025
- NYSE:VLO: $17.87 million (4.2% of AUM) as of September 30, 2025
- NYSE:LMT: $16.13 million (3.8% of AUM) as of September 30, 2025
- NYSE:CAT: $15.79 million (3.7% of AUM) as of September 30, 2025
As of October 17, 2025, shares were priced at $495.15, down 19.07% over the past year, underperforming the S&P 500 by 30.57 percentage points during the same period.
The stock was 20% below its 52-week high as of October 17, 2025 and offered a 2.79% dividend yield as of October 17, 2025.
Company Overview
| Metric | Value |
|---|---|
| Market Capitalization | $115.60 billion |
| Revenue (TTM) | $71.84 billion |
| Net Income (TTM) | $4.20 billion |
| Price (as of market close 2025-10-17) | $495.15 |
Company Snapshot
Lockheed Martin Corporation is a leading global aerospace and defense contractor with a broad technology portfolio and significant scale. The company leverages its expertise in integrated systems and long-term government relationships to maintain a strong competitive position in the defense sector.
IMAGE SOURCE: GETTY IMAGES.
Lockheed Martin offers a diverse portfolio of products and services, including combat and mobility aircraft, missile systems, helicopters, radar, space transportation, and classified defense technologies.
The company generates revenue primarily from long-term government contracts for the research, development, manufacturing, and sustainment of advanced aerospace and defense systems.
Its main customers are the U.S. government and allied defense agencies worldwide, with a significant portion of sales derived from U.S. Department of Defense contracts and foreign military sales facilitated by the U.S. government.
Foolish take
Paradiem, a financial services company, made a notable move by initiating a substantial stake in Lockheed Martin, one that catapulted the stock into its top five holdings. Shares hit a 52-week low of $410.11 in July, and perhaps Paradiem was taking advantage of the stock's drop from a high of $618.95 reached last October.
Lockheed Martin squeaked out sales growth in the second quarter with $18.16 billion in revenue compared to $18.12 last year. But a factor in its stock's fall from grace is the plunge in Q2 diluted earnings per share to $1.46 from $6.85 in the prior year.
The drop in earnings illustrates the impact of macroeconomic factors, such as persistent inflation and rising tariffs. But the defense contractor also suffered from self-inflicted wounds. In July, the company's CEO, Jim Taiclet, noted what he called "new developments" on a "set of major legacy programs." This led to Lockheed Martin taking pre-tax charges of $1.6 billion in Q2.
Paradiem's new position in Lockheed Martin shows a belief that the company can bounce back. Given Lockheed Martin's long history serving the U.S. government, it's likely to recover over time. Add in its robust dividend, currently yielding 2.8%, and Lockheed Martin looks like a worthwhile stock to buy while it's down.
Glossary
13F AUM: Assets under management reported by institutional investment managers on SEC Form 13F, covering U.S. equity holdings.
New position: An investment in a security that was not previously held in the fund's portfolio.
Dividend yield: Annual dividends per share divided by the share price, expressed as a percentage.
52-week high: The highest price at which a security traded during the past 12 months.
Assets under management (AUM): The total market value of investments managed by a fund or firm.
Quarterly average price: The average price of a security over a specific quarter, used for valuation or reporting.
Filing: An official document submitted to a regulatory authority, often detailing financial or investment information.
Reportable U.S. equity holdings: U.S. stock positions that must be disclosed by institutional investors in regulatory filings.
Stake: The amount or percentage of ownership an investor holds in a company.
Long-term government contracts: Agreements with government agencies to provide products or services over multiple years.
Foreign military sales: U.S. government-facilitated sales of defense equipment and services to allied foreign governments.
TTM: The 12-month period ending with the most recent quarterly report.
