Franklin Resources Inc. Raises Holdings in Northrop Grumman Corporation $NOC

Key Points

• Franklin Resources Inc. raised its stake in Northrop Grumman by 2.2% in Q3 to 2,996,284 shares—about 2.10% of the company—worth roughly $1.826 billion at quarter-end.
• Wall Street is largely positive with a consensus rating of "Moderate Buy" and an average target of $693.60 (several banks lifting targets to $750–$778); Northrop beat Q results with $7.23 EPS vs. $6.97 expected and set FY2026 guidance of $27.40–$27.90 EPS (analysts expect ~28.05).
• Insiders have been net sellers—32,431 shares (~$22.0M) sold in the last 90 days, including CEO Kathy Warden's sale of 20,000 shares (~$14.18M)—while the company also announced a $2.31 quarterly dividend (annualized $9.24, ~1.3% yield).

Franklin Resources Inc. boosted its holdings in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 2.2% in the 3rd quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The fund owned 2,996,284 shares of the aerospace company's stock after acquiring an additional 63,223 shares during the quarter. Franklin Resources Inc. owned about 2.10% of Northrop Grumman worth $1,825,696,000 at the end of the most recent quarter.

Other large investors have also modified their holdings of the company. Physician Wealth Advisors Inc. increased its position in shares of Northrop Grumman by 200.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 48 shares of the aerospace company's stock worth $29,000 after purchasing an additional 32 shares during the last quarter. Parvin Asset Management LLC purchased a new stake in shares of Northrop Grumman in the 2nd quarter valued at approximately $25,000. Hopwood Financial Services Inc. acquired a new position in shares of Northrop Grumman in the 3rd quarter worth approximately $30,000. Twin Peaks Wealth Advisors LLC acquired a new position in shares of Northrop Grumman in the 2nd quarter worth approximately $31,000. Finally, Manning & Napier Advisors LLC purchased a new position in shares of Northrop Grumman during the 3rd quarter worth approximately $42,000. Institutional investors and hedge funds own 83.40% of the company's stock.

Wall Street Analysts Forecast Growth

Several analysts recently weighed in on the stock. Royal Bank Of Canada lifted their target price on shares of Northrop Grumman from $715.00 to $750.00 and gave the company an "outperform" rating in a report on Wednesday, January 28th. Deutsche Bank Aktiengesellschaft restated a "buy" rating and set a $765.00 price target on shares of Northrop Grumman in a research report on Thursday, January 29th. UBS Group lifted their price objective on Northrop Grumman from $777.00 to $778.00 and gave the company a "buy" rating in a research note on Wednesday, January 28th. Jefferies Financial Group boosted their price objective on Northrop Grumman from $630.00 to $690.00 and gave the company a "hold" rating in a report on Sunday, February 1st. Finally, Bank of America increased their target price on Northrop Grumman from $685.00 to $750.00 and gave the stock a "buy" rating in a research note on Wednesday, January 28th. One analyst has rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and nine have assigned a Hold rating to the company's stock. Based on data from MarketBeat.com, Northrop Grumman presently has an average rating of "Moderate Buy" and a consensus target price of $693.60.

Insider Buying and Selling

In other news, VP Benjamin R. Davies sold 2,189 shares of Northrop Grumman stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $719.61, for a total value of $1,575,226.29. Following the completion of the transaction, the vice president owned 151 shares in the company, valued at approximately $108,661.11. This trade represents a 93.55% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, CEO Kathy J. Warden sold 20,000 shares of the business's stock in a transaction dated Friday, February 6th. The stock was sold at an average price of $708.82, for a total value of $14,176,400.00. Following the transaction, the chief executive officer directly owned 171,602 shares of the company's stock, valued at approximately $121,634,929.64. This represents a 10.44% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Over the last 90 days, insiders sold 32,431 shares of company stock valued at $21,969,404. Company insiders own 0.23% of the company's stock.

Northrop Grumman Price Performance

Northrop Grumman stock opened at $734.38 on Wednesday. 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 firm has a market cap of $104.22 billion, a PE ratio of 25.21, a price-to-earnings-growth ratio of 5.55 and a beta of 0.03. The company's 50 day moving average is $681.98 and its two-hundred day moving average is $616.73.

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

Northrop Grumman Dividend Announcement

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

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.

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