Canada Pension Plan Investment Board Sells 49,036 Shares of Northrop Grumman Corporation $NOC

Key Points

• Canada Pension Plan Investment Board reduced its Northrop Grumman stake by 13.5%, selling 49,036 shares and retaining 314,532 shares worth approximately $160.2 million. Institutional investors still own 83.4% of the company.
• Northrop Grumman reported quarterly EPS of $7.68, beating estimates of $6.82, while revenue rose 5.1% year over year to $10.88 billion. Analysts maintain a “Moderate Buy” consensus rating with an average price target of $661.30.
• The company declared a quarterly dividend of $2.47 per share, equivalent to an annualized $9.88 payout and a 1.8% yield. Growth prospects include missile-defense programs, increased international defense spending and sustained global military demand.

Canada Pension Plan Investment Board cut its holdings in Northrop Grumman Corporation (NYSE:NOC - Free Report) by 13.5% during the second quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 314,532 shares of the aerospace company's stock after selling 49,036 shares during the period. Canada Pension Plan Investment Board owned about 0.22% of Northrop Grumman worth $160,194,000 at the end of the most recent reporting period.

Several other hedge funds and other institutional investors have also recently modified their holdings of the business. Financial Life Planners purchased a new position in shares of Northrop Grumman during the first quarter worth approximately $30,000. Torren Management LLC purchased a new stake in Northrop Grumman during the 4th quarter worth approximately $26,000. Karpus Management Inc. purchased a new position in Northrop Grumman during the fourth quarter worth approximately $26,000. Whipplewood Advisors LLC lifted its stake in shares of Northrop Grumman by 380.0% in the 1st quarter. Whipplewood Advisors LLC now owns 48 shares of the aerospace company's stock valued at $33,000 after purchasing an additional 38 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC acquired a new stake in shares of Northrop Grumman in the fourth quarter valued at $29,000. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Analysts Set New Price Targets

Several research analysts have recently issued reports on the company. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $653.00 price objective on shares of Northrop Grumman in a research report on Wednesday, August 5th. Weiss Ratings cut shares of Northrop Grumman from a "hold (c+)" rating to a "hold (c)" rating in a research note on Wednesday, August 12th. Raymond James Financial restated an "outperform" rating on shares of Northrop Grumman in a research note on Monday, June 15th. Wells Fargo & Company reissued an "overweight" rating and issued a $620.00 price objective on shares of Northrop Grumman in a research report on Wednesday, July 8th. Finally, Citigroup lifted their target price on Northrop Grumman from $617.00 to $667.00 and gave the stock a "buy" rating in a research report on Thursday, August 13th. One investment analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and eight have issued a Hold rating to the company's stock. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average price target of $661.30.

Northrop Grumman Stock Performance

Northrop Grumman stock opened at $550.61 on Thursday. The firm's 50 day simple moving average is $541.40 and its 200-day simple moving average is $606.36. The company has a market cap of $78.20 billion, a P/E ratio of 17.49, a price-to-earnings-growth ratio of 3.51 and a beta of -0.11. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.17 and a quick ratio of 1.06. Northrop Grumman Corporation has a fifty-two week low of $479.02 and a fifty-two week high of $774.00.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.82 by $0.86. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The company had revenue of $10.88 billion during the quarter, compared to analyst estimates of $10.80 billion. During the same quarter last year, the business posted $8.15 EPS. The company's revenue for the quarter was up 5.1% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. As a group, equities research analysts predict that Northrop Grumman Corporation will post 28.97 EPS for the current year.

Northrop Grumman Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st will be given a $2.47 dividend. This represents a $9.88 annualized dividend and a yield of 1.8%. The ex-dividend date is Monday, August 31st. Northrop Grumman's dividend payout ratio (DPR) is currently 31.39%.

Key Headlines Impacting Northrop Grumman

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

• Positive Sentiment: Northrop Grumman expects to win a “decent share” of the potentially massive Golden Dome missile-defense program. CEO Kathy Warden’s comments reinforce the company’s positioning in space-based defense, although contracts and award values have not yet been finalized. Northrop Grumman expects decent share of Golden Dome missile defense
• Positive Sentiment: The company is expanding its international defense business as allied nations increase military spending. International sales are rising, and management is targeting approximately $10 billion in annual international revenue by 2031, suggesting a potential long-term growth avenue beyond U.S. government demand. Is Northrop Grumman Expanding Its International Defense Business?
• Positive Sentiment: Management says Northrop is operating on a “wartime footing,” while geopolitical tensions and active conflicts are driving a global defense-spending boom. That backdrop could support demand for the company’s missile, space and other defense platforms. Northrop Grumman Is on a Wartime Footing, CEO Says
• Neutral Sentiment: Northrop Grumman maintained its quarterly dividend at $2.47 per share, payable September 16 to shareholders of record August 31. The steady payout supports income-focused investors, but the absence of a new increase provides little incremental catalyst. NOC Steady at $2.47: A Closer Look at Northrop Grumman Corporation’s Dividend Discipline
• Neutral Sentiment: A $1.55 billion U.S. rare-earth initiative could benefit defense contractors by strengthening strategic-material supply chains, but the direct financial effect on Northrop Grumman remains unclear. Why Trump’s $1.55 billion rare earth move matters for Northrop Grumman

Insider Activity at Northrop Grumman

In other news, Director Mark A. Welsh III sold 95 shares of Northrop Grumman stock in a transaction dated Monday, August 3rd. The shares were sold at an average price of $547.53, for a total transaction of $52,015.35. Following the sale, the director directly owned 4,393 shares in the company, valued at approximately $2,405,299.29. The trade was a 2.12% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 0.21% of the company's stock.

Northrop Grumman Company Profile

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.

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