Lockheed Martin Corporation (NYSE:LMT): Are Hedge Funds Right About This Stock?

Lockheed Martin Corporation (NYSE:LMT) shareholders have witnessed a decrease in support from the world’s most elite money managers recently.

Lockheed Martin Corporation (NYSE:LMT)

At the moment, there are plenty of methods shareholders can use to watch Mr. Market. A couple of the best are hedge fund and insider trading interest. At Insider Monkey, our studies have shown that, historically, those who follow the best picks of the best investment managers can outclass the market by a very impressive margin (see just how much).

Just as integral, positive insider trading sentiment is another way to parse down the investments you’re interested in. As the old adage goes: there are plenty of reasons for an executive to drop shares of his or her company, but just one, very clear reason why they would initiate a purchase. Plenty of empirical studies have demonstrated the valuable potential of this tactic if investors understand where to look (learn more here).

Keeping this in mind, we’re going to take a gander at the latest action surrounding Lockheed Martin Corporation (NYSE:LMT).

What have hedge funds been doing with Lockheed Martin Corporation (NYSE:LMT)?

At the end of the fourth quarter, a total of 34 of the hedge funds we track were long in this stock, a change of -3% from the third quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes significantly.

When looking at the hedgies we track, First Eagle Investment Management, managed by Jean-Marie Eveillard, holds the largest position in Lockheed Martin Corporation (NYSE:LMT). First Eagle Investment Management has a $418 million billion position in the stock, comprising 1.5% of its 13F portfolio. Coming in second is Citadel Investment Group, managed by Ken Griffin, which held a $111 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other hedge funds with similar optimism include John Shapiro’s Chieftain Capital, Ron Gutfleish’s Elm Ridge Capital and D. E. Shaw’s D E Shaw.

Since Lockheed Martin Corporation (NYSE:LMT) has experienced declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of funds that slashed their positions entirely last quarter. It’s worth mentioning that Peter Adam Hochfelder’s Brahman Capital cut the biggest position of the “upper crust” of funds we key on, worth about $56 million in call options. Phill Gross and Robert Atchinson’s fund, Adage Capital Management, also dumped its stock, about $52 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 funds last quarter.

How are insiders trading Lockheed Martin Corporation (NYSE:LMT)?

Insider purchases made by high-level executives is best served when the company in question has experienced transactions within the past half-year. Over the last six-month time frame, Lockheed Martin Corporation (NYSE:LMT) has experienced zero unique insiders buying, and 3 insider sales (see the details of insider trades here).

With the returns shown by the aforementioned tactics, everyday investors should always pay attention to hedge fund and insider trading sentiment, and Lockheed Martin Corporation (NYSE:LMT) is an important part of this process.

Click here to learn more about Insider Monkey’s Hedge Fund Newsletter

Insider Monkey’s small-cap strategy returned 29.2% between September 2012 and February 2013 versus 8.7% for the S&P 500 index. Try it now by clicking the link above.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!