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Lockheed Martin, Northrop Grumman Shares Hit by Trump Post on Share Buybacks
Defense stocks including Lockheed Martin, Northrop Grumman and General Dynamics fell Wednesday afternoon after reports that President Trump is set to sign an executive order that will punish defense companies that repurchase stocks, pay dividends and reward executives with high salaries if they have Pentagon contracts that are over budget or behind schedule.
“Defense Contractors are currently issuing massive Dividends to their Shareholders and massive Stock Buybacks, at the expense and detriment of investing in Plants and Equipment,” Trump posted on Truth Social. “This situation will no longer be allowed or tolerated!”
Northrop shares fell 5.5%, Lockheed lost 4.8%, General Dynamics was down 4.2%, and RTX retreated 2.3%.
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