Northrop Grumman Corporation $NOC Stock: Mawer Investment Management Ltd. Reduces Stake

Key Points

• Mawer Investment Management cut its Northrop Grumman stake by 9.3% in the third quarter, selling 61,944 shares and retaining 605,125 shares valued at about $292.6 million.
• Northrop Grumman beat quarterly EPS estimates, reporting $7.89 per share versus $7.18 expected; revenue rose 6.7% year over year to $11.12 billion, slightly below forecasts.
• Analysts’ consensus rating was “Moderate Buy,” with a $643.74 average price target; the company’s quarterly dividend was $2.47 per share, equivalent to a 1.8% yield at the cited share price.

Mawer Investment Management Ltd. trimmed its stake in shares of Northrop Grumman Corporation (NYSE:NOC - Free Report) by 9.3% during the third quarter, according to its most recent filing with the Securities and Exchange Commission. The institutional investor owned 605,125 shares of the aerospace company's stock after selling 61,944 shares during the quarter. Northrop Grumman comprises 2.1% of Mawer Investment Management Ltd.'s holdings, making the stock its 14th biggest position. Mawer Investment Management Ltd. owned about 0.43% of Northrop Grumman worth $292,566,000 as of its most recent filing with the Securities and Exchange Commission.

Other institutional investors also recently made changes to their positions in the company. Cornerstone Advisory LLC increased its position in shares of Northrop Grumman by 7.6% during the 3rd quarter. Cornerstone Advisory LLC now owns 1,195 shares of the aerospace company's stock valued at $578,000 after purchasing an additional 84 shares during the period. Bernicke Wealth Management Ltd. acquired a new stake in shares of Northrop Grumman in the third quarter valued at $523,000. Diversified Trust Co lifted its holdings in shares of Northrop Grumman by 23.1% in the third quarter. Diversified Trust Co now owns 4,794 shares of the aerospace company's stock valued at $2,318,000 after buying an additional 900 shares during the period. Vista Capital Partners Inc. acquired a new stake in shares of Northrop Grumman in the third quarter valued at $579,000. Finally, Aberdeen Group plc boosted its stake in Northrop Grumman by 980.8% during the third quarter. Aberdeen Group plc now owns 127,206 shares of the aerospace company's stock valued at $61,502,000 after buying an additional 115,436 shares in the last quarter. 83.40% of the stock is owned by institutional investors and hedge funds.

Northrop Grumman Trading Up 0.3%

Shares of NYSE:NOC traded up $1.42 during midday trading on Friday, reaching $550.55. The company had a trading volume of 515,567 shares, compared to its average volume of 1,027,311. The company has a debt-to-equity ratio of 0.77, a quick ratio of 1.14 and a current ratio of 1.23. Northrop Grumman Corporation has a 1-year low of $470.06 and a 1-year high of $774.00. The firm has a market cap of $78.21 billion, a price-to-earnings ratio of 17.37, a price-to-earnings-growth ratio of 2.95 and a beta of -0.13. The company has a fifty day simple moving average of $520.74 and a two-hundred day simple moving average of $585.88.

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 for the quarter, topping analysts' consensus estimates of $7.18 by $0.71. The firm had revenue of $11.12 billion for the quarter, compared to analysts' expectations of $11.14 billion. Northrop Grumman had a return on equity of 23.46% and a net margin of 10.37%. Northrop Grumman's revenue was up 6.7% on a year-over-year basis. During the same quarter last year, the business posted $7.67 EPS. Research analysts predict that Northrop Grumman Corporation will post 29.68 earnings per share for the current year.

Northrop Grumman Dividend Announcement

The company also recently announced a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st were issued a $2.47 dividend. This represents a $9.88 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Monday, August 31st. Northrop Grumman's dividend payout ratio (DPR) is presently 31.17%.

Wall Street Analysts Forecast Growth

Several research analysts recently weighed in on the company. UBS Group raised their target price on Northrop Grumman from $694.00 to $698.00 and gave the company a "buy" rating in a research note on Wednesday, October 21st. Susquehanna dropped their price target on shares of Northrop Grumman from $785.00 to $655.00 and set a "positive" rating on the stock in a research report on Wednesday, July 22nd. Sanford C. Bernstein upped their price target on shares of Northrop Grumman from $556.00 to $590.00 and gave the company a "market perform" rating in a report on Tuesday, October 27th. Weiss Ratings raised shares of Northrop Grumman from a "hold (c)" rating to a "hold (c+)" rating in a report on Thursday, October 8th. Finally, The Goldman Sachs Group raised their price objective on shares of Northrop Grumman from $533.00 to $538.00 and gave the company a "neutral" rating in a research report on Monday, July 27th. Fifteen research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $643.74.

Insider Activity at Northrop Grumman

In other news, Director Mark Welsh, III sold 98 shares of Northrop Grumman stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $555.65, for a total value of $54,453.70. Following the transaction, the director directly owned 4,314 shares of the company's stock, valued at $2,397,074.10. This trade represents a 2.22% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is currently owned by 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.

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