Northrop Grumman (NYSE:NOC) Stock Price Up 2.8% - Here's What Happened

Key Points

• Northrop Grumman shares rose 2.8% in mid-day trading to $539.48, while trading volume was 13% below its average.
• Quarterly earnings were $7.89 per share, beating analyst estimates of $7.18; revenue of $11.12 billion slightly missed consensus but increased 6.7% year over year.
• Analysts hold a consensus “Moderate Buy” rating with a $643.74 average price target, based on 15 Buy, 9 Hold, and 1 Sell rating.

Northrop Grumman Corporation (NYSE:NOC - Get Free Report) shares rose 2.8% during mid-day trading on Monday. The stock traded as high as $543.92 and last traded at $539.48. 810,896 shares changed hands during mid-day trading, a decline of 13% from the average session volume of 932,650 shares. The stock had previously closed at $525.01.

Analyst Upgrades and Downgrades

Several analysts recently commented on the stock. Jefferies Financial Group restated a "hold" rating and set a $585.00 price target on shares of Northrop Grumman in a research report on Sunday, October 25th. Susquehanna decreased their price objective on shares of Northrop Grumman from $785.00 to $655.00 and set a "positive" rating for the company in a research report on Wednesday, July 22nd. Robert W. Baird raised shares of Northrop Grumman from a "neutral" rating to an "outperform" rating and increased their target price for the stock from $550.00 to $675.00 in a research note on Wednesday, October 21st. Citigroup increased their target price on shares of Northrop Grumman from $617.00 to $667.00 and gave the stock a "buy" rating in a research note on Thursday, August 13th. Finally, UBS Group increased their price target on Northrop Grumman from $694.00 to $698.00 and gave the stock a "buy" rating in a research report on Wednesday, October 21st. Fifteen equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and a consensus target price of $643.74.

Northrop Grumman Stock Up 2.8%

The company has a quick ratio of 1.14, a current ratio of 1.23 and a debt-to-equity ratio of 0.77. The business has a 50-day moving average price of $519.36 and a 200-day moving average price of $588.90. The firm has a market capitalization of $76.64 billion, a PE ratio of 17.02, a price-to-earnings-growth ratio of 2.82 and a beta of -0.13.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its quarterly earnings data on Tuesday, October 20th. The aerospace company reported $7.89 EPS 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 the consensus estimate of $11.14 billion. Northrop Grumman had a return on equity of 23.46% and a net margin of 10.37%. The firm's revenue was up 6.7% compared to the same quarter last year. During the same quarter last year, the business posted $7.67 earnings per share. Equities research analysts forecast that Northrop Grumman Corporation will post 29.68 earnings per share for the current fiscal year.

Northrop Grumman Dividend Announcement

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

Insider Activity

In other news, Director Mark Welsh, III sold 98 shares of the firm's stock in a transaction that occurred on Monday, November 2nd. The shares were sold at an average price of $555.65, for a total transaction of $54,453.70. Following the completion of the sale, the director owned 4,314 shares in the company, valued at $2,397,074.10. This trade represents a 2.22% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in NOC. Whipplewood Advisors LLC increased its position in Northrop Grumman by 380.0% during the 1st quarter. Whipplewood Advisors LLC now owns 48 shares of the aerospace company's stock worth $33,000 after purchasing an additional 38 shares in the last quarter. Perkins Coie Trust Co acquired a new position in Northrop Grumman in the 2nd quarter valued at about $29,000. Plato Investment Management Ltd acquired a new position in Northrop Grumman in the 2nd quarter valued at about $30,000. Navigoe LLC acquired a new stake in shares of Northrop Grumman during the 2nd quarter worth about $30,000. Finally, Scarborough Advisors LLC purchased a new stake in shares of Northrop Grumman during the first quarter worth about $42,000. 83.40% of the stock is currently owned by institutional investors and hedge funds.

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.

Northrop Grumman traces its roots to Northrop Aircraft, founded in 1939, and Grumman, founded in 1930; the two companies combined in 1994.

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