Capital World Investors Sells 150,748 Shares of Northrop Grumman Corporation $NOC

Key Points

• Capital World Investors reduced its stake in Northrop Grumman by 5.8%, selling 150,748 shares in Q3 and now holds 2,464,012 shares (~1.73%) valued at about $1.501 billion; institutional investors own 83.4% of the stock.
• Company insiders sold 32,431 shares in the last quarter (about $21.97 million), including sales by VP Benjamin R. Davies and CAO Michael Hardesty, leaving insiders with roughly 0.23% ownership.
• Northrop Grumman beat Q results (EPS $7.23 vs. $6.97) with revenue up 9.6% y/y, issued FY2026 EPS guidance of 27.40–27.90, announced a $2.31 quarterly dividend (1.3% yield), and carries an average analyst rating of "Moderate Buy" with a $693.60 target.

Capital World Investors lessened its stake in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 5.8% in the third quarter, according to the company in its most recent Form 13F filing with the SEC. The firm owned 2,464,012 shares of the aerospace company's stock after selling 150,748 shares during the quarter. Capital World Investors owned approximately 1.73% of Northrop Grumman worth $1,501,372,000 at the end of the most recent quarter.

Other institutional investors and hedge funds have also recently made changes to their positions in the company. Capital International Inc. CA boosted its stake in shares of Northrop Grumman by 19.7% during the 3rd quarter. Capital International Inc. CA now owns 187,862 shares of the aerospace company's stock valued at $114,468,000 after purchasing an additional 30,894 shares in the last quarter. Bank of Montreal Can raised its stake in Northrop Grumman by 1.0% in the third quarter. Bank of Montreal Can now owns 202,162 shares of the aerospace company's stock worth $123,181,000 after buying an additional 1,911 shares in the last quarter. Legal & General Group Plc lifted its holdings in Northrop Grumman by 4.1% in the third quarter. Legal & General Group Plc now owns 746,585 shares of the aerospace company's stock worth $454,909,000 after buying an additional 29,478 shares during the period. Banque Cantonale Vaudoise purchased a new stake in Northrop Grumman in the third quarter worth about $43,000. Finally, Flavin Financial Services Inc. boosted its position in Northrop Grumman by 27.0% during the 3rd quarter. Flavin Financial Services Inc. now owns 2,439 shares of the aerospace company's stock valued at $1,486,000 after acquiring an additional 519 shares in the last quarter. Institutional investors own 83.40% of the company's stock.

Insider Buying and Selling

In related news, VP Benjamin R. Davies sold 2,189 shares of the firm's stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $719.61, for a total transaction of $1,575,226.29. Following the sale, the vice president owned 151 shares in the company, valued at approximately $108,661.11. This trade represents a 93.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CAO Michael A. Hardesty sold 147 shares of the business's stock in a transaction that occurred on Thursday, February 19th. The shares were sold at an average price of $732.98, for a total value of $107,748.06. Following the completion of the sale, the chief accounting officer owned 2,525 shares of the company's stock, valued at $1,850,774.50. This trade represents a 5.50% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 32,431 shares of company stock worth $21,969,404. 0.23% of the stock is currently owned by company insiders.

Analysts Set New Price Targets

Several research firms recently weighed in on NOC. Vertical Research restated a "hold" rating and set a $688.00 price target on shares of Northrop Grumman in a research report on Tuesday, January 27th. Weiss Ratings reissued a "buy (b)" rating on shares of Northrop Grumman in a research report on Wednesday, December 24th. UBS Group boosted their target price on shares of Northrop Grumman from $777.00 to $778.00 and gave the company a "buy" rating in a report on Wednesday, January 28th. Deutsche Bank Aktiengesellschaft reaffirmed a "buy" rating and issued a $765.00 target price on shares of Northrop Grumman in a research report on Thursday, January 29th. Finally, Argus set a $785.00 price target on shares of Northrop Grumman in a research report on Tuesday, February 10th. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and nine have assigned a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $693.60.

Northrop Grumman Stock Performance

Shares of NYSE:NOC opened at $734.38 on Wednesday. The firm has a fifty day simple moving average of $681.98 and a two-hundred day simple moving average of $616.73. The company has a quick ratio of 1.01, a current ratio of 1.10 and a debt-to-equity ratio of 0.91. Northrop Grumman Corporation has a 52 week low of $450.13 and a 52 week high of $774.00. The stock has a market capitalization of $104.22 billion, a P/E ratio of 25.21, a PEG ratio of 5.55 and a beta of 0.03.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its quarterly earnings results on Tuesday, January 27th. The aerospace company reported $7.23 earnings per share for the quarter, topping the consensus estimate of $6.97 by $0.26. Northrop Grumman had a return on equity of 25.57% and a net margin of 9.97%.The firm had revenue of $11.71 billion for the quarter, compared to the consensus estimate of $11.61 billion. During the same period in the prior year, the business posted $6.39 earnings per share. The company's revenue for the quarter was up 9.6% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. On average, analysts expect that Northrop Grumman Corporation will post 28.05 earnings per share for the current fiscal year.

Northrop Grumman Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 11th. Stockholders of record on Monday, February 23rd will be issued a $2.31 dividend. This represents a $9.24 annualized dividend and a dividend yield of 1.3%. The ex-dividend date of this dividend is Monday, February 23rd. Northrop Grumman's payout ratio is 31.72%.

Northrop Grumman 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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