Is Lockheed Martin a Buy After Investment Company Paradiem Initiated a Big Position in the Stock?

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 (NYSE:LMT), 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

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.

Robert Izquierdo has positions in Caterpillar. The Motley Fool has positions in and recommends Lam Research. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.