AXQ Capital LP Acquires Stake in Northrop Grumman

AXQ Capital LP has recently acquired a new position in Northrop Grumman Co. (NYSE:NOC) during the fourth quarter of the year. This information was disclosed in AXQ Capital's latest 13F filing with the Securities and Exchange Commission. The firm purchased a total of 3,256 shares of the aerospace manufacturer, with a total value of approximately $1,528,000. This acquisition represents 0.7% of AXQ Capital LP's overall portfolio, making Northrop Grumman its 15th largest holding.

In addition to AXQ Capital LP, other institutional investors have also shown interest in Northrop Grumman. For instance, Citizens Financial Group Inc. RI increased its stake in the company by 24.6% during the third quarter, acquiring 1,379 additional shares and now holding 6,980 shares worth about $3,686,000. Furthermore, King Luther Capital Management Corp raised its stake by 7.6%, thereby owning 1,229 shares valued at $649,000. LPL Financial LLC also made a notable investment, increasing its shares by 4.0% to a total of 242,983, valued at $128,312,000 after buying an additional 9,353 shares in the previous quarter.

Thompson Siegel & Walmsley LLC reported a small increase of 0.3% in its shareholding, now holding 8,320 shares worth $4,394,000 after including 21 more shares. Integrated Investment Consultants LLC entered the ranks of investors by acquiring a new stake valued at around $273,000 in the same quarter. Overall, institutional investors now control approximately 83.40% of Northrop Grumman's shares.

Northrop Grumman Stock Performance

As of Friday, shares of Northrop Grumman on the NYSE opened at $492.25. The company maintains a debt-to-equity ratio of 0.96, with a current ratio of 1.01 and a quick ratio of 0.91. The stock's fifty-day moving average price stands at $475.18, while its two-hundred-day moving average is valued at $493.53. Over the past year, Northrop Grumman has seen its stock range from a low of $418.60 to a high of $555.57. With a market capitalization of $71.26 billion, the company's price-to-earnings ratio is reported at 17.37, along with a P/E/G ratio of 3.73 and a beta of 0.31.

On January 30th, Northrop Grumman announced its quarterly earnings, revealing an EPS of $6.39 for the last quarter, surpassing analysts' projections of $6.27 by a margin of $0.12. The company posted a return on equity of 26.24% and a net margin of 10.17%. Analysts anticipate that Northrop Grumman will report an EPS of approximately 28.05 for the current year.

In a strategic move to enhance its investor relations, Northrop Grumman's Board of Directors authorized a share buyback plan on December 11th, allowing the company to repurchase up to $3.00 billion in shares. This plan permits the company to buy back approximately 4.3% of its total shares through open market transactions, signaling the Board’s confidence in the value of the company’s stock.

Dividend Announcement by Northrop Grumman

Northrop Grumman also declared a quarterly dividend recently, which was distributed on March 19th. Shareholders on record by March 3rd received a dividend payment of $2.06 per share. This translates to an annualized dividend of $8.24, reflecting a yield of 1.67%. The ex-dividend date was likewise March 3rd. Presently, Northrop Grumman’s dividend payout ratio (DPR) stands at 29.08%.

Insider Transactions at Northrop Grumman

In related news, there have been recent insider sales at Northrop Grumman. VP Benjamin R. Davies sold 464 shares on February 28th for an average price of $460.75, totaling $213,788.00 for the transaction. After this sale, he retains ownership of 245 shares valued at approximately $112,883.75, reflecting a significant 65.44% decrease in his holdings. Additionally, CEO Kathy J. Warden sold 3,750 shares on March 6th for an average price of $475.65, amounting to $1,783,687.50. Post-transaction, she owns 212,852 shares valued at around $101,243,053.80, marking a 1.73% reduction in her stake. Over the last three months, insiders have sold 4,505 shares of company stock, totaling $2,126,405, and corporate insiders hold only 0.22% of the stock.

Analyst Ratings for Northrop Grumman

Recently, various brokerages have provided analysis updates for Northrop Grumman. Citigroup raised its price target from $587.00 to $591.00, maintaining a "buy" recommendation. Argus has upgraded Northrop Grumman to a "strong buy" rating, whereas Wolfe Research changed its rating from "underperform" to "peer perform.” Wells Fargo & Company increased their price target to $547.00 and also suggested an "overweight" rating. Finally, Truist Financial initiated coverage with a "buy" rating and a price target of $544.00. In summary, nine analysts have rated Northrop Grumman with a hold, nine with a buy, and one has given it a strong buy rating, resulting in an average rating of "Moderate Buy" with a consensus price target of $542.88.

About Northrop Grumman

Northrop Grumman Corporation operates primarily as an aerospace and defense technology company on a global scale, including regions in the United States, Asia/Pacific, and Europe. Its Aeronautics Systems division is responsible for designing and manufacturing various aircraft systems. This division also develops unmanned autonomous aircraft systems, including high-altitude strategic ISR systems, tactical ISR systems with vertical take-off and landing capabilities, as well as strategic long-range and tactical fighter aircraft.

AXQ, Northrop, Investors