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Is Lockheed Martin Corporation (LMT) Worthy of Your Portfolio?

Since Lockheed Martin Corporation (NYSE:LMT) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few money managers that slashed their positions entirely by the end of the third quarter. Intriguingly, First Eagle Investment Management cut the biggest position of the “upper crust” of funds followed by Insider Monkey, totaling about $167.7 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its stock, worth about $163.4 million. These moves are intriguing to say the least, as total hedge fund interest fell by 5 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lockheed Martin Corporation (NYSE:LMT) but similarly valued. These stocks are Union Pacific Corporation (NYSE:UNP), Westpac Banking Corporation (ADR) (NYSE:WBK), Mondelez International Inc (NASDAQ:MDLZ), and Lowe’s Companies, Inc. (NYSE:LOW). This group of stocks’ market values match LMT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UNP 62 2502901 7
WBK 5 31922 -1
MDLZ 53 5902162 -9
LOW 68 3273484 1

As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $2.93 billion. That figure was $756 million in LMT’s case. Lowe’s Companies, Inc. (NYSE:LOW) is the most popular stock in this table. On the other hand Westpac Banking Corporation (ADR) (NYSE:WBK) is the least popular one with only five investors holding shares. Lockheed Martin Corporation (NYSE:LMT) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LOW might be a better candidate to consider a long position.

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