Northrop Grumman (NYSE:NOC) Sets New 1-Year High - Here's What Happened

Key Points

• Northrop Grumman shares reached a new 52-week high at $577.38, closing at $576.37 with a trading volume of 278,503 shares.
• The company reported earnings of $7.11 per share, exceeding expectations of $6.84, alongside a revenue increase to $10.35 billion for the recent quarter.
• Northrop Grumman announced an increased quarterly dividend of $2.31, reflecting a positive change from the previous dividend of $2.06 and indicating a dividend yield of 1.6%.

Northrop Grumman Corporation (NYSE:NOC - Get Free Report) shares reached a new 52-week high during mid-day trading on Thursday . The stock traded as high as $577.38 and last traded at $576.37, with a volume of 278503 shares trading hands. The stock had previously closed at $572.81.

Wall Street Analyst Weigh In

NOC has been the subject of a number of research analyst reports. Wells Fargo & Company restated an "overweight" rating on shares of Northrop Grumman in a research report on Tuesday, July 22nd. Robert W. Baird increased their target price on shares of Northrop Grumman from $547.00 to $565.00 and gave the company a "neutral" rating in a research report on Wednesday, July 23rd. Truist Financial reissued a "buy" rating and issued a $625.00 price target (up previously from $550.00) on shares of Northrop Grumman in a research note on Wednesday, July 23rd. Morgan Stanley increased their price target on shares of Northrop Grumman from $580.00 to $625.00 and gave the company an "overweight" rating in a research note on Wednesday, April 16th. Finally, Susquehanna increased their price objective on shares of Northrop Grumman from $557.00 to $650.00 and gave the stock a "positive" rating in a research report on Tuesday, July 22nd. Ten research analysts have rated the stock with a hold rating, eight have given a buy rating and one has issued a strong buy rating to the stock. According to MarketBeat.com, the stock has an average rating of "Moderate Buy" and an average target price of $586.79.

Northrop Grumman Price Performance

The stock's 50 day moving average price is $507.21 and its two-hundred day moving average price is $492.83. The company has a debt-to-equity ratio of 0.98, a current ratio of 1.04 and a quick ratio of 0.93. The firm has a market capitalization of $82.58 billion, a price-to-earnings ratio of 21.26, a PEG ratio of 5.43 and a beta of 0.15.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its earnings results on Tuesday, July 22nd. The aerospace company reported $7.11 earnings per share (EPS) for the quarter, topping 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 analyst estimates of $10.15 billion. During the same quarter in the previous year, the firm posted $6.36 earnings per share. Northrop Grumman's revenue was up 1.3% compared to the same quarter last year. On average, equities research analysts anticipate that Northrop Grumman Corporation will post 28.05 EPS for the current year.

Northrop Grumman Increases Dividend

The company also recently announced a quarterly dividend, which was paid on Wednesday, June 18th. Stockholders of record on Monday, June 2nd were issued a $2.31 dividend. This represents a $9.24 annualized dividend and a dividend yield of 1.6%. The ex-dividend date of this dividend was Monday, June 2nd. This is a positive change from Northrop Grumman's previous quarterly dividend of $2.06. Northrop Grumman's payout ratio is currently 34.06%.

Insider Activity

In other news, CEO Kathy J. Warden sold 7,500 shares of the company's stock in a transaction dated Friday, June 13th. The shares were sold at an average price of $505.77, for a total value of $3,793,275.00. Following the sale, the chief executive officer owned 201,602 shares of the company's stock, valued at approximately $101,964,243.54. This represents a 3.59% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Robert J. Fleming sold 3,500 shares of the company's stock in a transaction dated Friday, June 13th. The stock was sold at an average price of $505.77, for a total transaction of $1,770,195.00. Following the transaction, the vice president owned 1,827 shares in the company, valued at approximately $924,041.79. This trade represents a 65.70% decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 16,569 shares of company stock worth $8,323,150 in the last quarter. 0.23% of the stock is owned by company insiders.

Institutional Trading of Northrop Grumman

Institutional investors and hedge funds have recently added to or reduced their stakes in the company. IMA Advisory Services Inc. bought a new position in shares of Northrop Grumman in the first quarter valued at about $27,000. Saudi Central Bank bought a new position in Northrop Grumman during the first quarter worth about $28,000. Banque Cantonale Vaudoise bought a new position in Northrop Grumman during the first quarter worth about $30,000. Wood Tarver Financial Group LLC bought a new position in Northrop Grumman during the fourth quarter worth about $32,000. Finally, Bellwether Advisors LLC bought a new position in Northrop Grumman during the fourth quarter worth about $33,000. 83.40% of the stock is owned by institutional investors.

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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