Bank of Nova Scotia Trims Stock Holdings in Northrop Grumman Corporation $NOC

Key Points

• Bank of Nova Scotia cut its Northrop Grumman stake by 24.1% in the first quarter, selling 14,947 shares and ending with 47,189 shares valued at about $32.2 million.
• Northrop Grumman’s Q2 earnings beat expectations, with EPS of $7.68 versus $6.82 expected, and revenue of $10.88 billion, while the company also raised its full-year sales guidance and cited a record backlog.
• Despite mixed analyst sentiment, the stock remains supported by the defense sector and has a Moderate Buy consensus rating, while Northrop also boosted its quarterly dividend to $2.47 per share.

Bank of Nova Scotia lowered its stake in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 24.1% during the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 47,189 shares of the aerospace company's stock after selling 14,947 shares during the period. Bank of Nova Scotia's holdings in Northrop Grumman were worth $32,194,000 at the end of the most recent reporting period.

Several other hedge funds also recently made changes to their positions in the stock. Brighton Jones LLC increased its position in shares of Northrop Grumman by 176.3% during the fourth quarter. Brighton Jones LLC now owns 2,970 shares of the aerospace company's stock valued at $1,394,000 after buying an additional 1,895 shares during the period. Bison Wealth LLC grew its stake in Northrop Grumman by 5.3% during the fourth quarter. Bison Wealth LLC now owns 641 shares of the aerospace company's stock valued at $301,000 after acquiring an additional 32 shares in the last quarter. Woodline Partners LP increased its holdings in Northrop Grumman by 367.7% during the 1st quarter. Woodline Partners LP now owns 2,516 shares of the aerospace company's stock worth $1,288,000 after acquiring an additional 1,978 shares during the period. AXA S.A. lifted its stake in Northrop Grumman by 1,487.8% in the 2nd quarter. AXA S.A. now owns 16,338 shares of the aerospace company's stock worth $8,169,000 after purchasing an additional 15,309 shares in the last quarter. Finally, NewEdge Advisors LLC lifted its stake in Northrop Grumman by 6.7% in the 2nd quarter. NewEdge Advisors LLC now owns 8,865 shares of the aerospace company's stock worth $4,432,000 after purchasing an additional 553 shares in the last quarter. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Wall Street Analysts Forecast Growth

A number of research analysts have recently commented on NOC shares. Wall Street Zen lowered shares of Northrop Grumman from a "strong-buy" rating to a "hold" rating in a research report on Saturday, April 25th. Morgan Stanley set a $745.00 price objective on Northrop Grumman in a research note on Wednesday, July 15th. Susquehanna reduced their target price on Northrop Grumman from $785.00 to $655.00 and set a "positive" rating for the company in a research report on Wednesday. JPMorgan Chase & Co. decreased their target price on Northrop Grumman from $635.00 to $600.00 and set a "neutral" rating on the stock in a research note on Thursday. Finally, Deutsche Bank Aktiengesellschaft set a $615.00 price target on Northrop Grumman in a report on Wednesday. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and nine have issued a Hold rating to the stock. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $655.24.

Northrop Grumman News Roundup

Here are the key news stories impacting Northrop Grumman this week:

• Positive Sentiment: Northrop Grumman’s Q2 earnings beat expectations, and the company lifted its full-year sales guidance while highlighting strong contract wins and a record backlog, reinforcing the investment case for the stock. Is Northrop Grumman (NOC) Undervalued As Earnings Beat And Guidance Rise?
• Positive Sentiment: Broader defense sector strength is helping sentiment, with defense ETFs benefiting from higher military spending, solid quarterly results across peers, and rising geopolitical tensions that could support future demand. Defense ETFs in Focus Amid Earnings, Conflict and Military Spending
• Positive Sentiment: Several articles and analyst notes say Northrop Grumman may still be undervalued or better positioned than other industrial names, which supports investor interest after the earnings report. How Much Could a $5,000 Investment in SpaceX Be Worth By 2030? Here's Why This Industrial Stock May Be a Better Buy Today.
• Neutral Sentiment: Analysts remain mixed, with UBS reportedly sticking to a Buy rating while TD Cowen and JPMorgan lowered price targets, suggesting expectations are still being recalibrated after earnings.
• Neutral Sentiment: Northrop Grumman also drew attention for its new robotic satellite servicing vehicle and mission extension pods, which may support long-term space systems growth but are not an immediate earnings driver. Northrop Grumman’s Mission Robotic Vehicle Launched Into Space; Operations Begin In 2027

Northrop Grumman Trading Up 1.6%

NYSE NOC opened at $542.09 on Friday. The company has a quick ratio of 1.04, a current ratio of 1.17 and a debt-to-equity ratio of 0.81. The stock's 50-day simple moving average is $535.81 and its two-hundred day simple moving average is $622.09. Northrop Grumman Corporation has a twelve month low of $479.02 and a twelve month high of $774.00. The company has a market capitalization of $76.99 billion, a price-to-earnings ratio of 17.22, a PEG ratio of 3.46 and a beta of -0.10.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.82 by $0.86. The business had revenue of $10.88 billion during the quarter, compared to analyst estimates of $10.80 billion. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The company's revenue was up 5.1% on a year-over-year basis. During the same period in the prior year, the business posted $8.15 earnings per share. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Research analysts forecast that Northrop Grumman Corporation will post 28.89 EPS for the current fiscal year.

Northrop Grumman Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Stockholders of record on Monday, June 1st were issued a dividend of $2.47 per share. This is an increase from Northrop Grumman's previous quarterly dividend of $2.31. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.8%. The ex-dividend date was Monday, June 1st. Northrop Grumman's dividend payout ratio (DPR) is currently 31.39%.

About Northrop Grumman

Northrop Grumman Corporation NYSE: NOC is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company's portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company's work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.

Want to see what other hedge funds are holding NOC? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Northrop Grumman Corporation (NYSE:NOC - Free Report).

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.