Franklin Resources Inc. Raises Stock Position in Northrop Grumman Corporation $NOC

Key Points

• Franklin Resources Inc. increased its Northrop Grumman stake by 4.3% in the fourth quarter, adding 128,855 shares to bring its total holding to 3.13 million shares worth about $1.78 billion.
• Northrop Grumman posted solid quarterly results, with EPS of $6.14 and revenue of $9.88 billion, both ahead of analyst expectations; revenue also rose 4.4% year over year.
• The company raised its dividend to $2.47 per share quarterly, implying an annualized payout of $9.88 and a yield of 1.8%, while analysts currently maintain a consensus Moderate Buy rating.

Franklin Resources Inc. raised its position in Northrop Grumman Corporation (NYSE:NOC - Free Report) by 4.3% during the 4th quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The fund owned 3,125,139 shares of the aerospace company's stock after purchasing an additional 128,855 shares during the quarter. Franklin Resources Inc. owned about 2.20% of Northrop Grumman worth $1,781,986,000 as of its most recent SEC filing.

Several other hedge funds have also made changes to their positions in the company. Erste Asset Management GmbH raised its position in shares of Northrop Grumman by 415.8% during the 4th quarter. Erste Asset Management GmbH now owns 10,316 shares of the aerospace company's stock valued at $5,959,000 after buying an additional 8,316 shares during the period. Hilton Head Capital Partners LLC purchased a new stake in shares of Northrop Grumman during the 4th quarter valued at approximately $139,000. CNB Bank raised its position in shares of Northrop Grumman by 5.9% during the 4th quarter. CNB Bank now owns 2,711 shares of the aerospace company's stock valued at $1,546,000 after buying an additional 150 shares during the period. Bcwm LLC raised its position in shares of Northrop Grumman by 2.7% during the 4th quarter. Bcwm LLC now owns 17,166 shares of the aerospace company's stock valued at $9,788,000 after buying an additional 445 shares during the period. Finally, SouthState Bank Corp raised its position in shares of Northrop Grumman by 130.0% during the 4th quarter. SouthState Bank Corp now owns 138 shares of the aerospace company's stock valued at $79,000 after buying an additional 78 shares during the period. Hedge funds and other institutional investors own 83.40% of the company's stock.

Northrop Grumman Trading Up 0.1%

NYSE NOC opened at $544.73 on Monday. The firm's 50-day moving average is $603.63 and its two-hundred day moving average is $631.56. Northrop Grumman Corporation has a 12 month low of $472.02 and a 12 month high of $774.00. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.15 and a quick ratio of 1.04. The stock has a market capitalization of $77.37 billion, a P/E ratio of 17.05, a PEG ratio of 3.71 and a beta of -0.12.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued 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. The company had revenue of $9.88 billion for the quarter, compared to analyst estimates of $9.75 billion. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The business's revenue for the quarter was up 4.4% compared to the same quarter last year. During the same period in the prior year, the firm earned $6.06 earnings per share. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. On average, sell-side analysts anticipate that Northrop Grumman Corporation will post 27.93 earnings per share for the current year.

Northrop Grumman Increases Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, June 17th. Shareholders of record on Monday, June 1st will be paid a dividend of $2.47 per share. This represents a $9.88 dividend on an annualized basis and a yield of 1.8%. This is a boost from Northrop Grumman's previous quarterly dividend of $2.31. The ex-dividend date is Monday, June 1st. Northrop Grumman's payout ratio is currently 30.92%.

Analyst Upgrades and Downgrades

A number of research analysts have commented on the stock. Citigroup decreased their target price 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. Wall Street Zen cut shares of Northrop Grumman from a "strong-buy" rating to a "hold" rating in a research report on Saturday, April 25th. Argus set a $785.00 target price on shares of Northrop Grumman in a research report on Tuesday, February 10th. BTIG Research reaffirmed a "buy" rating and issued a $815.00 target price on shares of Northrop Grumman in a research report on Wednesday, April 22nd. Finally, Jefferies Financial Group decreased their target price on shares of Northrop Grumman from $660.00 to $620.00 and set a "buy" rating on the stock in a research report on Tuesday, May 26th. Two research 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 presently has a consensus rating of "Moderate Buy" and a consensus target price of $702.63.

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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