Northrop Grumman (NYSE:NOC) Reaches New 12-Month High After Strong Earnings

Shares of Northrop Grumman Corporation (NYSE:NOC - Get Free Report) hit a new 52-week high during trading on Wednesday after the company announced better than expected quarterly earnings. The stock traded as high as $568.67 and last traded at $567.71, with a volume of 1250841 shares changing hands. The stock had previously closed at $563.79.

The aerospace company reported $7.11 earnings per share for the quarter, beating analysts' consensus estimates of $6.84 by $0.27. Northrop Grumman had a net margin of 9.74% and a return on equity of 25.52%. The business had revenue of $10.35 billion for the quarter, compared to the consensus estimate of $10.15 billion. During the same quarter last year, the firm earned $6.36 EPS. Northrop Grumman's revenue for the quarter was up 1.3% on a year-over-year basis.

Northrop Grumman Increases Dividend

The firm also recently announced a quarterly dividend, which was paid on Wednesday, June 18th. Stockholders of record on Monday, June 2nd were given a dividend of $2.31 per share. This is a positive change from Northrop Grumman's previous quarterly dividend of $2.06. This represents a $9.24 annualized dividend and a dividend yield of 1.62%. The ex-dividend date of this dividend was Monday, June 2nd. Northrop Grumman's payout ratio is 34.06%.

Analyst Ratings Changes

NOC has been the subject of a number of recent research reports. Wall Street Zen downgraded shares of Northrop Grumman from a "buy" rating to a "hold" rating in a research note on Thursday, April 24th. Morgan Stanley raised their price target on shares of Northrop Grumman from $580.00 to $625.00 and gave the stock an "overweight" rating in a research report on Wednesday, April 16th. Royal Bank Of Canada raised their price target on shares of Northrop Grumman from $600.00 to $625.00 and gave the company an "outperform" rating in a research note on Tuesday. Deutsche Bank Aktiengesellschaft reiterated a "hold" rating and issued a $542.00 price objective (down previously from $580.00) on shares of Northrop Grumman in a research note on Tuesday, July 8th. Finally, Susquehanna boosted their price target on shares of Northrop Grumman from $557.00 to $650.00 and gave the company a "positive" rating in a research note on Tuesday. Ten investment analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the company's stock. Based on data from MarketBeat.com, Northrop Grumman currently has a consensus rating of "Moderate Buy" and a consensus target price of $576.67.

Insider Activity at Northrop Grumman

In related news, VP Robert J. Fleming sold 3,500 shares of the company's stock in a transaction that occurred on Friday, June 13th. The shares were sold at an average price of $505.77, for a total value of $1,770,195.00. Following the transaction, the vice president directly owned 1,827 shares in the company, valued at approximately $924,041.79. This represents a 65.70% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, VP Roshan S. Roeder sold 991 shares of the company's stock in a transaction that occurred on Wednesday, June 4th. The stock was sold at an average price of $490.00, for a total transaction of $485,590.00. Following the completion of the transaction, the vice president owned 319 shares in the company, valued at approximately $156,310. This trade represents a 75.65% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 16,569 shares of company stock valued at $8,323,150 in the last ninety days. 0.23% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Northrop Grumman

A number of institutional investors have recently added to or reduced their stakes in NOC. NorthRock Partners LLC increased its holdings in Northrop Grumman by 13.4% in the 2nd quarter. NorthRock Partners LLC now owns 1,570 shares of the aerospace company's stock worth $785,000 after buying an additional 186 shares in the last quarter. Sequoia Financial Advisors LLC increased its stake in Northrop Grumman by 26.0% in the 2nd quarter. Sequoia Financial Advisors LLC now owns 3,750 shares of the aerospace company's stock worth $1,875,000 after acquiring an additional 774 shares during the last quarter. MGO One Seven LLC increased its stake in Northrop Grumman by 3.6% in the 2nd quarter. MGO One Seven LLC now owns 5,219 shares of the aerospace company's stock worth $2,609,000 after acquiring an additional 182 shares during the last quarter. Stephens Consulting LLC increased its stake in Northrop Grumman by 11.0% in the 2nd quarter. Stephens Consulting LLC now owns 333 shares of the aerospace company's stock worth $166,000 after acquiring an additional 33 shares during the last quarter. Finally, Hazlett Burt & Watson Inc. increased its position in shares of Northrop Grumman by 13.7% during the 2nd quarter. Hazlett Burt & Watson Inc. now owns 507 shares of the aerospace company's stock valued at $253,000 after purchasing an additional 61 shares during the last quarter. Institutional investors own 83.40% of the company's stock.

Northrop Grumman Trading Up 0.2%

The stock has a market cap of $81.54 billion, a P/E ratio of 20.99, a P/E/G ratio of 6.18 and a beta of 0.15. The company has a current ratio of 1.04, a quick ratio of 0.84 and a debt-to-equity ratio of 0.98. The company has a 50-day moving average price of $499.40 and a two-hundred day moving average price of $489.74.

Northrop Grumman Company Profile

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.