Cercano Management LLC Cuts Stake in Northrop Grumman Corporation $NOC

Key Points

• Cercano Management LLC cut its Northrop Grumman stake by 95.9% in the fourth quarter, leaving it with just 437 shares worth about $249,000.
• Northrop Grumman reported better-than-expected Q1 earnings and revenue, with EPS of $6.14 versus $6.06 expected and revenue of $9.88 billion, up 4.4% year over year.
• The company also raised its quarterly dividend to $2.47 per share from $2.31, while analysts currently rate the stock Moderate Buy with a consensus target price of $702.63.

Cercano Management LLC reduced its holdings in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 95.9% during the 4th quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The firm owned 437 shares of the aerospace company's stock after selling 10,131 shares during the period. Cercano Management LLC's holdings in Northrop Grumman were worth $249,000 at the end of the most recent quarter.

Several other large investors have also recently added to or reduced their stakes in the business. a16z Perennial Management L.P. increased its stake in Northrop Grumman by 12.0% during the 4th quarter. a16z Perennial Management L.P. now owns 440 shares of the aerospace company's stock worth $251,000 after buying an additional 47 shares during the period. New Mexico Educational Retirement Board increased its position in shares of Northrop Grumman by 1.6% in the 4th quarter. New Mexico Educational Retirement Board now owns 6,222 shares of the aerospace company's stock valued at $3,548,000 after purchasing an additional 100 shares during the last quarter. Hazlett Burt & Watson Inc. increased its position in shares of Northrop Grumman by 3.7% in the 4th quarter. Hazlett Burt & Watson Inc. now owns 646 shares of the aerospace company's stock valued at $371,000 after purchasing an additional 23 shares during the last quarter. Nomura Asset Management Co. Ltd. increased its position in shares of Northrop Grumman by 2.7% in the 4th quarter. Nomura Asset Management Co. Ltd. now owns 49,927 shares of the aerospace company's stock valued at $28,469,000 after purchasing an additional 1,300 shares during the last quarter. Finally, Verity & Verity LLC purchased a new stake in shares of Northrop Grumman in the 4th quarter valued at approximately $445,000. 83.40% of the stock is owned by hedge funds and other institutional investors.

Wall Street Analyst Weigh In

A number of equities research analysts have commented on the stock. BTIG Research reissued a "buy" rating and issued a $815.00 price objective on shares of Northrop Grumman in a research report on Wednesday, April 22nd. Argus set a $785.00 price objective on shares of Northrop Grumman in a research report on Tuesday, February 10th. Citigroup dropped their price objective on shares of Northrop Grumman from $742.00 to $628.00 and set a "buy" rating on the stock in a research report on Monday, May 18th. Wells Fargo & Company assumed coverage on shares of Northrop Grumman in a research report on Wednesday, April 1st. They issued an "overweight" rating and a $800.00 price objective on the stock. Finally, Morgan Stanley dropped their price objective on shares of Northrop Grumman from $765.00 to $745.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 22nd. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and seven have assigned a Hold rating to the company's stock. According to data from MarketBeat, Northrop Grumman currently has an average rating of "Moderate Buy" and a consensus target price of $702.63.

Northrop Grumman Trading Down 4.4%

Shares of Northrop Grumman stock opened at $538.94 on Tuesday. The company has a fifty day simple moving average of $615.77 and a 200-day simple moving average of $632.15. Northrop Grumman Corporation has a 12-month low of $472.02 and a 12-month high of $774.00. The company has a current ratio of 1.15, a quick ratio of 1.04 and a debt-to-equity ratio of 0.84. The stock has a market cap of $76.54 billion, a price-to-earnings ratio of 16.87, a PEG ratio of 3.84 and a beta of -0.12.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its earnings results on Tuesday, April 21st. The aerospace company reported $6.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.06 by $0.08. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The business had revenue of $9.88 billion during the quarter, compared to analysts' expectations of $9.75 billion. During the same quarter in the prior year, the business posted $6.06 EPS. The company's revenue for the quarter was up 4.4% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. On average, equities analysts forecast that Northrop Grumman Corporation will post 27.93 EPS for the current fiscal year.

Northrop Grumman Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Investors of record on Monday, June 1st will be paid a dividend of $2.47 per share. The ex-dividend date is Monday, June 1st. This represents a $9.88 dividend on an annualized basis and a yield of 1.8%. This is an increase from Northrop Grumman's previous quarterly dividend of $2.31. Northrop Grumman's dividend payout ratio (DPR) is currently 28.92%.

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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