Mark Welsh III Sells 95 Shares of Northrop Grumman (NYSE:NOC) Stock

Key Points

• Director Mark Welsh III sold 95 Northrop Grumman shares for approximately $52,015 at an average price of $547.53 under a pre-arranged Rule 10b5-1 plan, reducing his ownership by 2.12%.
• Northrop Grumman exceeded quarterly earnings expectations, reporting $7.68 in EPS and $10.88 billion in revenue, while raising its quarterly dividend to $2.47 per share.
• The company secured more than $3 billion in multiyear missile-defense framework agreements, strengthening long-term demand visibility. Analysts maintain a consensus “Moderate Buy” rating with an average price target of $659.

Northrop Grumman Corporation (NYSE:NOC - Get Free Report) Director Mark Welsh III sold 95 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the transaction, the director owned 4,393 shares of the company's stock, valued at $2,405,299.29. The trade was a 2.12% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Northrop Grumman Price Performance

Shares of Northrop Grumman stock traded up $4.58 on Tuesday, hitting $553.05. 420,410 shares of the company traded hands, compared to its average volume of 947,719. The business has a 50-day simple moving average of $534.57 and a 200 day simple moving average of $619.42. The stock has a market capitalization of $78.55 billion, a P/E ratio of 17.57, a price-to-earnings-growth ratio of 3.51 and a beta of -0.10. The company has a debt-to-equity ratio of 0.81, a quick ratio of 1.06 and a current ratio of 1.17. Northrop Grumman Corporation has a 52 week low of $479.02 and a 52 week high of $774.00.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 EPS for the quarter, topping analysts' consensus estimates of $6.82 by $0.86. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The firm had revenue of $10.88 billion during the quarter, compared to analysts' expectations of $10.80 billion. During the same period in the previous year, the company earned $8.15 EPS. The firm's revenue for the quarter was up 5.1% compared to the same quarter last year. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Research analysts expect that Northrop Grumman Corporation will post 28.97 earnings per share for the current fiscal year.

Northrop Grumman Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Wednesday, June 17th. Investors of record on Monday, June 1st were paid a dividend of $2.47 per share. The ex-dividend date of this dividend was Monday, June 1st. This represents a $9.88 dividend on an annualized basis and a dividend yield of 1.8%. This is an increase from Northrop Grumman's previous quarterly dividend of $2.31. Northrop Grumman's dividend payout ratio is 31.39%.

Key Headlines Impacting Northrop Grumman

Here are the key news stories impacting Northrop Grumman this week:

• Positive Sentiment: More than $3 billion in missile-defense agreements: Northrop Grumman entered into multiyear framework agreements with the U.S. Department of Defense and Lockheed Martin to accelerate production of PAC-3 MSE and THAAD interceptor components. The deals are intended to expand capacity and improve delivery speed for U.S. and allied programs, providing stronger order visibility and potentially supporting future revenue growth. Reuters missile interceptor production article
• Positive Sentiment: Defense-spending tailwind: The Pentagon’s decision to tap Northrop and Lockheed to rebuild weapon stockpiles reinforces expectations for sustained demand for missile-defense systems. Rising global security needs and allied procurement could create additional follow-on opportunities for Northrop’s missile and space businesses. Lockheed and Northrop weapon stockpile article
• Positive Sentiment: Analyst stance remains constructive: Northrop Grumman receives an average “Moderate Buy” recommendation, which may provide additional support as investors assess the company’s defense backlog and earnings outlook. Northrop Grumman analyst recommendation article
• Neutral Sentiment: Stock performance: NOC rose in the latest reported session but still lagged the overall market. The recent contract announcements are positive for long-term visibility, although framework agreements typically represent production commitments and capacity expansion rather than immediate revenue or earnings.

Analysts Set New Price Targets

Several analysts have recently weighed in on the company. JPMorgan Chase & Co. decreased their target price on Northrop Grumman from $635.00 to $600.00 and set a "neutral" rating for the company in a research report on Thursday, July 23rd. Citigroup reduced their price target on shares of Northrop Grumman from $628.00 to $587.00 and set a "buy" rating on the stock in a research note on Wednesday, July 1st. UBS Group lifted their price objective on shares of Northrop Grumman from $666.00 to $685.00 and gave the company a "buy" rating in a report on Wednesday, July 22nd. Raymond James Financial reissued an "outperform" rating on shares of Northrop Grumman in a research report on Monday, June 15th. Finally, Robert W. Baird set a $500.00 target price on shares of Northrop Grumman in a research note on Wednesday, July 22nd. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and eight have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $659.00.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the business. Torren Management LLC purchased a new position in Northrop Grumman during the fourth quarter valued at approximately $26,000. Karpus Management Inc. bought a new stake in Northrop Grumman during the 4th quarter valued at $26,000. Kohmann Bosshard Financial Services LLC bought a new stake in Northrop Grumman during the 4th quarter valued at $29,000. Perkins Coie Trust Co purchased a new position in shares of Northrop Grumman in the 2nd quarter valued at $29,000. Finally, Financial Life Planners bought a new position in shares of Northrop Grumman in the 1st quarter worth $30,000. Hedge funds and other institutional investors own 83.40% of the company's stock.

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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