Lockheed Martin Stock Climbs as Options Volume Surges 1,691% Amid Mixed Investor Activity

2026-02-28 companies

Bethesda, Saturday, 28 February 2026.
Shares rose 2.7% to $658.95, driven by a staggering 1,691% spike in call options. This speculative activity contrasts with mixed institutional adjustments and recent insider selling by executives.

Options Market Signals Bullish Sentiment

While institutional strategies appear divided, the derivatives market has signaled a robust appetite for upside potential. On February 27, traders purchased 155,267 call options on Lockheed Martin, representing a massive surge of approximately 1,691% compared to the typical daily volume of 8,670 calls [2][6]. This aggressive speculative positioning coincides with the stock’s recent daily gain of 2.74%, closing at $659.24 on the New York Stock Exchange [4]. The divergence between this bullish options activity and the selling pressure from certain asset managers suggests a complex tug-of-war over the defense contractor’s near-term valuation [2][6].

Institutional Outflows Persist

The mixed sentiment highlighted in recent filings extends beyond the trades by Mitsubishi UFJ and Argent Trust. During the third quarter, US Bancorp DE reduced its exposure to the aerospace giant, selling 7,446 shares to lower its position by 5.4% [7]. Despite these divestments, institutional confidence remains a dominant force, with hedge funds and other institutional investors collectively controlling 74.19% of the company’s stock [4][7]. Over the trailing twelve months, capital flows have remained positive on a net basis, with total institutional inflows of $10.07 billion outpacing outflows of $8.68 billion [4].

Executive Insider Selling and Earnings Context

Amidst this external trading activity, significant insider movement was reported on February 27. Gregory M. Ulmer, President of Aeronautics at Lockheed Martin, executed a sale of 2,840 shares in open-market transactions at weighted average prices ranging between $650.00 and $651.36 [8]. Following this transaction, Ulmer retains direct ownership of approximately 5,661 shares [8]. This sale represents a divestment of roughly 33.407% of his direct holdings reported in the filing.

Future Outlook: Dividends and Analyst Targets

Looking ahead, shareholders are positioned to receive a quarterly dividend of $3.45 per share, payable on March 27 to those on record as of Monday, March 2 [2][3]. This payout contributes to an annualized dividend of $13.80, yielding 2.1% at current price levels [2]. Analyst sentiment remains cautious but generally constructive; as of recent updates, the stock holds a consensus “Hold” rating with an average price target of $612.50 [3]. Notable recent adjustments include Citigroup raising its target to $673.00 on February 5, while Jefferies Financial Group increased its objective to $630.00 earlier in the month [3].

Sources

Institutional Investors Defense Contractors