Northrop Grumman Corporation $NOC Stock: Commonwealth Equity Services LLC Cuts Stake

Key Points

• Commonwealth Equity Services cut its Northrop Grumman stake by 6.3% in the third quarter, selling 3,603 shares; it retained 54,027 shares valued at about $26.1 million.
• Northrop Grumman beat quarterly EPS estimates ($7.89 versus $7.18), while revenue rose 6.7% year over year to $11.12 billion, slightly below expectations.
• Analysts’ consensus rating was “Moderate Buy”, with an average price target of $643.74; the company’s annualized dividend is $9.88 per share, a 1.8% yield.

Commonwealth Equity Services LLC decreased its position in Northrop Grumman Corporation (NYSE:NOC - Free Report) by 6.3% in the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 54,027 shares of the aerospace company's stock after selling 3,603 shares during the period. Commonwealth Equity Services LLC's holdings in Northrop Grumman were worth $26,121,000 as of its most recent SEC filing.

Several other institutional investors and hedge funds have also recently bought and sold shares of NOC. Collaborative Fund Advisors LLC increased its holdings in shares of Northrop Grumman by 13.6% during the 3rd quarter. Collaborative Fund Advisors LLC now owns 803 shares of the aerospace company's stock valued at $388,000 after acquiring an additional 96 shares during the last quarter. Pathway Financial Advisers LLC boosted its position in Northrop Grumman by 8.9% during the third quarter. Pathway Financial Advisers LLC now owns 4,631 shares of the aerospace company's stock worth $2,239,000 after purchasing an additional 379 shares during the period. Chicago Partners Investment Group LLC raised its position in shares of Northrop Grumman by 14.9% in the third quarter. Chicago Partners Investment Group LLC now owns 4,233 shares of the aerospace company's stock valued at $2,334,000 after purchasing an additional 548 shares during the period. Covestor Ltd raised its position in shares of Northrop Grumman by 30.7% in the third quarter. Covestor Ltd now owns 132 shares of the aerospace company's stock valued at $64,000 after purchasing an additional 31 shares during the period. Finally, Signet Investment Advisory Group Inc. lifted its stake in shares of Northrop Grumman by 2.2% in the third quarter. Signet Investment Advisory Group Inc. now owns 5,494 shares of the aerospace company's stock worth $2,656,000 after buying an additional 117 shares during the last quarter. Institutional investors own 83.40% of the company's stock.

Northrop Grumman Price Performance

Northrop Grumman stock opened at $539.48 on Tuesday. Northrop Grumman Corporation has a 12 month low of $470.06 and a 12 month high of $774.00. The company has a market capitalization of $76.64 billion, a price-to-earnings ratio of 18.15, a PEG ratio of 2.82 and a beta of -0.13. The stock's 50 day moving average is $519.23 and its 200-day moving average is $588.28. The company has a current ratio of 1.23, a quick ratio of 1.14 and a debt-to-equity ratio of 0.77.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The aerospace company reported $7.89 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.18 by $0.71. Northrop Grumman had a return on equity of 23.46% and a net margin of 10.37%. The company had revenue of $11.12 billion for the quarter, compared to analyst estimates of $11.14 billion. During the same quarter last year, the company posted $7.67 EPS. The company's revenue for the quarter was up 6.7% compared to the same quarter last year. Equities research analysts expect that Northrop Grumman Corporation will post 29.68 EPS for the current year.

Northrop Grumman Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Stockholders of record on Monday, August 31st were paid a $2.47 dividend. The ex-dividend date was Monday, August 31st. This represents a $9.88 annualized dividend and a dividend yield of 1.8%. Northrop Grumman's payout ratio is currently 31.17%.

Analyst Ratings Changes

NOC has been the topic of several research analyst reports. UBS Group raised their price target on shares of Northrop Grumman from $694.00 to $698.00 and gave the company a "buy" rating in a report on Wednesday, October 21st. Rothschild & Co Redburn began coverage on shares of Northrop Grumman in a research report on Tuesday, October 6th. They issued a "buy" rating and a $680.00 price objective for the company. BNP Paribas Exane upped their price objective on Northrop Grumman from $540.00 to $600.00 and gave the stock an "outperform" rating in a report on Wednesday, October 21st. Citigroup increased their price objective on Northrop Grumman from $617.00 to $667.00 and gave the company a "buy" rating in a research report on Thursday, August 13th. Finally, The Goldman Sachs Group lifted their target price on Northrop Grumman from $533.00 to $538.00 and gave the company a "neutral" rating in a research note on Monday, July 27th. Fifteen research analysts have rated the stock with a Buy rating, nine have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Northrop Grumman presently has an average rating of "Moderate Buy" and a consensus price target of $643.74.

Insider Activity

In other Northrop Grumman news, Director Mark Welsh, III sold 98 shares of the stock in a transaction dated Monday, November 2nd. The shares were sold at an average price of $555.65, for a total value of $54,453.70. Following the completion of the sale, the director owned 4,314 shares in the company, valued at approximately $2,397,074.10. This trade represents a 2.22% decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by company insiders.

Northrop Grumman Company Profile

Northrop Grumman Corporation is a U.S.-based aerospace and defense company that develops and produces systems for government and commercial customers. Its business spans aeronautics, defense, mission technologies and space, including military aircraft, autonomous systems, missile and air-defense capabilities, sensors, communications and satellites.

The company is the prime contractor for the B-21 Raider and is developing the Sentinel intercontinental ballistic missile system. It also supplies technologies and components for other defense programs, as well as launch vehicles, propulsion systems and spacecraft.

Northrop Grumman traces its roots to Northrop Aircraft, founded in 1939, and Grumman, founded in 1930; the two companies combined in 1994.

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