Northrop Grumman (NYSE:NOC) Announces Earnings Results

Key Points

• Northrop Grumman reported earnings of $7.67 per share, exceeding analysts' expectations of $6.43, indicating strong financial performance.
• The company announced a quarterly dividend of $2.31, which represents an annualized payout of $9.24 and a dividend yield of 1.5%.
• Institutional investors hold 83.40% of Northrop Grumman's stock, with significant increases in positions from hedge funds, reflecting strong institutional confidence in the company.

Northrop Grumman (NYSE:NOC - Get Free Report) announced its earnings results on Tuesday. The aerospace company reported $7.67 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $6.43 by $1.24, Zacks reports. Northrop Grumman had a net margin of 9.74% and a return on equity of 25.52%.

Northrop Grumman Stock Performance

Shares of Northrop Grumman stock opened at $601.92 on Tuesday. The company's 50 day moving average price is $592.91 and its two-hundred day moving average price is $538.16. The firm has a market capitalization of $86.18 billion, a P/E ratio of 22.19, a P/E/G ratio of 5.78 and a beta of 0.10. Northrop Grumman has a fifty-two week low of $426.24 and a fifty-two week high of $640.90. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.04 and a quick ratio of 0.93.

Northrop Grumman Dividend Announcement

The business also recently declared a quarterly dividend, which was paid on Wednesday, September 17th. Stockholders of record on Tuesday, September 2nd were paid a $2.31 dividend. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.5%. The ex-dividend date was Tuesday, September 2nd. Northrop Grumman's dividend payout ratio (DPR) is presently 34.06%.

Institutional Trading of Northrop Grumman

A number of hedge funds have recently made changes to their positions in the company. Adage Capital Partners GP L.L.C. increased its stake in shares of Northrop Grumman by 322.2% in the second quarter. Adage Capital Partners GP L.L.C. now owns 110,920 shares of the aerospace company's stock valued at $55,458,000 after buying an additional 84,645 shares during the period. Vident Advisory LLC grew its holdings in Northrop Grumman by 39.9% during the 2nd quarter. Vident Advisory LLC now owns 198,574 shares of the aerospace company's stock worth $99,283,000 after acquiring an additional 56,627 shares during the last quarter. Orion Porfolio Solutions LLC increased its position in Northrop Grumman by 244.1% in the 2nd quarter. Orion Porfolio Solutions LLC now owns 56,265 shares of the aerospace company's stock valued at $28,131,000 after acquiring an additional 39,916 shares during the period. Alliancebernstein L.P. increased its position in Northrop Grumman by 14.3% in the 2nd quarter. Alliancebernstein L.P. now owns 307,207 shares of the aerospace company's stock valued at $153,597,000 after acquiring an additional 38,321 shares during the period. Finally, Raymond James Financial Inc. raised its stake in shares of Northrop Grumman by 5.4% during the second quarter. Raymond James Financial Inc. now owns 379,834 shares of the aerospace company's stock valued at $189,909,000 after acquiring an additional 19,572 shares during the last quarter. 83.40% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of equities research analysts recently issued reports on the company. JPMorgan Chase & Co. increased their price target on Northrop Grumman from $480.00 to $585.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. Wells Fargo & Company reiterated an "overweight" rating on shares of Northrop Grumman in a research report on Tuesday, July 22nd. Sanford C. Bernstein increased their target price on Northrop Grumman from $630.00 to $674.00 and gave the stock a "market perform" rating in a report on Monday. Susquehanna boosted their price target on Northrop Grumman from $557.00 to $650.00 and gave the company a "positive" rating in a research note on Tuesday, July 22nd. Finally, Robert W. Baird upped their price objective on shares of Northrop Grumman from $547.00 to $565.00 and gave the stock a "neutral" rating in a research report on Wednesday, July 23rd. One equities research analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating and six have assigned a Hold rating to the stock. Based on data from MarketBeat.com, Northrop Grumman currently has an average rating of "Moderate Buy" and a consensus target price of $617.50.

About Northrop Grumman

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company's Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.

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