D.A. Davidson & CO. Cuts Stock Position in Northrop Grumman Corporation $NOC

Key Points

• D.A. Davidson & Co. reduced its Northrop Grumman position by 31.5% in the first quarter, selling 2,971 shares and leaving it with 6,466 shares valued at about $4.41 million.
• Northrop Grumman’s latest quarter beat expectations, with EPS of $6.14 versus $6.06 expected and revenue of $9.88 billion, while the company also raised its quarterly dividend to $2.47 per share.
• Sentiment around the stock remains broadly positive, supported by defense-spending tailwinds and upcoming Q2 earnings, though analyst views are mixed with a consensus rating of Moderate Buy and an average target price of $676.29.

D.A. Davidson & CO. cut its position in Northrop Grumman Corporation (NYSE:NOC - Free Report) by 31.5% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 6,466 shares of the aerospace company's stock after selling 2,971 shares during the quarter. D.A. Davidson & CO.'s holdings in Northrop Grumman were worth $4,411,000 at the end of the most recent reporting period.

Several other hedge funds have also modified their holdings of NOC. Torren Management LLC purchased a new position in shares of Northrop Grumman in the 4th quarter worth approximately $26,000. Karpus Management Inc. purchased a new stake in Northrop Grumman during the fourth quarter valued at approximately $26,000. Kohmann Bosshard Financial Services LLC purchased a new stake in Northrop Grumman during the fourth quarter valued at approximately $29,000. Financial Life Planners purchased a new stake in Northrop Grumman during the first quarter valued at approximately $30,000. Finally, Motiv8 Investments LLC acquired a new stake in Northrop Grumman in the fourth quarter valued at approximately $30,000. 83.40% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Northrop Grumman

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

• Positive Sentiment: Defense stocks are benefiting from a broader sector rally as investors respond to expectations for stronger U.S. military spending, including a proposed $1.5 trillion defense budget backdrop. Northrop Grumman rises as defense-spending tailwinds and program momentum lift sentiment
• Positive Sentiment: Investor attention is building ahead of Northrop Grumman’s July 21 Q2 results, with a strong backlog and government contract momentum expected to support the quarter. Northrop Grumman to Post Q2 Earnings: Here's What to Expect
• Positive Sentiment: Recent program news, including work tied to Sentinel infrastructure, is reinforcing the long-term growth story for strategic deterrence and aerospace missions. Northrop Grumman Planning To Add Hundreds Of Jobs For Sentinel
• Neutral Sentiment: Analyst commentary remains mixed-to-positive, with recent coverage focused on key earnings metrics and margin sensitivity, especially around the Sentinel program.
• Negative Sentiment: Insider trading data shows no open-market insider buying in the last six months, while several executives have sold shares, which may temper some enthusiasm.

Northrop Grumman Stock Up 0.9%

NYSE:NOC opened at $523.19 on Friday. The company has a market cap of $74.31 billion, a PE ratio of 16.38, a P/E/G ratio of 3.53 and a beta of -0.10. Northrop Grumman Corporation has a twelve month low of $493.84 and a twelve 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 company's 50 day moving average is $538.07 and its two-hundred day moving average is $623.81.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its quarterly earnings results on Tuesday, April 21st. The aerospace company reported $6.14 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 last year, the company posted $6.06 earnings per share. The business's quarterly revenue was up 4.4% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. Analysts anticipate that Northrop Grumman Corporation will post 27.95 EPS for the current year.

Northrop Grumman Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Monday, June 1st were given a $2.47 dividend. This represents a $9.88 annualized dividend and a dividend yield of 1.9%. The ex-dividend date of this dividend was Monday, June 1st. This is a positive change from Northrop Grumman's previous quarterly dividend of $2.31. Northrop Grumman's payout ratio is currently 30.92%.

Wall Street Analyst Weigh In

Several research firms have issued reports on NOC. Weiss Ratings lowered shares of Northrop Grumman from a "hold (c+)" rating to a "hold (c)" rating in a report on Wednesday. Wells Fargo & Company reiterated an "overweight" rating and set a $620.00 price objective on shares of Northrop Grumman in a report on Wednesday, July 8th. Morgan Stanley set a $745.00 price objective on Northrop Grumman in a research report on Wednesday. TD Cowen dropped their target price on Northrop Grumman from $680.00 to $580.00 and set a "hold" rating on the stock in a research note on Monday, July 13th. Finally, Citigroup dropped their target price on Northrop Grumman from $628.00 to $587.00 and set a "buy" rating on the stock in a research note on Wednesday, July 1st. One equities research analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and ten have given a Hold rating to the company. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and a consensus target price of $676.29.

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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