Northrop Grumman Corporation $NOC Shares Sold by Arax Advisory Partners

Key Points

• Arax Advisory Partners sharply reduced its Northrop Grumman stake in the fourth quarter, selling 12,403 shares and cutting holdings by 83.7% to 2,411 shares worth about $1.375 million.
• Despite the sale, Northrop Grumman continues to have broad institutional support, with 83.40% of the stock owned by hedge funds and other institutional investors.
• The company reported stronger-than-expected quarterly results, beating EPS and revenue estimates, and also raised its quarterly dividend to $2.47 per share, up from $2.31.

Arax Advisory Partners decreased its holdings in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 83.7% in the 4th quarter, according to its most recent Form 13F filing with the SEC. The firm owned 2,411 shares of the aerospace company's stock after selling 12,403 shares during the period. Arax Advisory Partners' holdings in Northrop Grumman were worth $1,375,000 at the end of the most recent quarter.

Other hedge funds have also modified their holdings of the company. Kestra Investment Management LLC increased its stake in Northrop Grumman by 4.4% during the 4th quarter. Kestra Investment Management LLC now owns 353 shares of the aerospace company's stock worth $201,000 after buying an additional 15 shares during the period. Evolution Wealth Management Inc. increased its position in shares of Northrop Grumman by 6.8% in the 4th quarter. Evolution Wealth Management Inc. now owns 235 shares of the aerospace company's stock worth $134,000 after purchasing an additional 15 shares during the last quarter. Howard Financial Services LTD. increased its position in shares of Northrop Grumman by 1.4% in the 4th quarter. Howard Financial Services LTD. now owns 1,143 shares of the aerospace company's stock worth $651,000 after purchasing an additional 16 shares during the last quarter. Frank Rimerman Advisors LLC increased its position in shares of Northrop Grumman by 0.8% in the 4th quarter. Frank Rimerman Advisors LLC now owns 1,973 shares of the aerospace company's stock worth $1,125,000 after purchasing an additional 16 shares during the last quarter. Finally, Capital Advisors Ltd. LLC increased its position in shares of Northrop Grumman by 0.4% in the 4th quarter. Capital Advisors Ltd. LLC now owns 4,012 shares of the aerospace company's stock worth $2,288,000 after purchasing an additional 16 shares during the last quarter. 83.40% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

Several research firms have recently weighed in on NOC. Raymond James Financial reissued an "outperform" rating on shares of Northrop Grumman in a research report on Monday. Citigroup dropped their target price on shares of Northrop Grumman from $742.00 to $628.00 and set a "buy" rating for the company in a research report on Monday, May 18th. Morgan Stanley decreased their price target on shares of Northrop Grumman from $765.00 to $745.00 and set an "overweight" rating for the company in a report on Wednesday, April 22nd. Wall Street Zen lowered shares of Northrop Grumman from a "strong-buy" rating to a "hold" rating in a report on Saturday, April 25th. Finally, UBS Group reduced their target price on shares of Northrop Grumman from $806.00 to $745.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Two analysts have rated the stock with a Strong Buy rating, twelve have assigned a Buy rating and seven have assigned a Hold rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and a consensus target price of $702.63.

Northrop Grumman Stock Performance

Shares of NOC opened at $544.08 on Tuesday. The company's 50 day moving average price is $586.66 and its 200 day moving average price is $630.66. Northrop Grumman Corporation has a 52 week low of $481.28 and a 52 week high of $774.00. The company has a market capitalization of $77.28 billion, a PE ratio of 17.03, a PEG ratio of 3.75 and a beta of -0.12. The company has a debt-to-equity ratio of 0.84, a quick ratio of 1.04 and a current ratio of 1.15.

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

Northrop Grumman Increases Dividend

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

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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