Northrop Grumman (NYSE:NOC) Shares Down 3.6% Following Insider Selling

Shares of Northrop Grumman Co. (NYSE:NOC) were down 3.6% on Monday following insider selling activity. The stock traded as low as $499.43 and last traded at $498.30. Approximately 410,404 shares changed hands during mid-day trading, a decline of 54% from the average daily volume of 883,522 shares. The stock had previously closed at $516.72.

Specifically, VP Thomas H. Jones sold 729 shares of the stock in a transaction on Friday, June 13th. The stock was sold at an average price of $505.77, for a total value of $368,706.33. Following the completion of the transaction, the vice president now directly owns 7,552 shares of the company’s stock, valued at approximately $3,819,575.04. This represents a 8.80% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Robert J. Fleming sold 3,500 shares of the stock in a transaction 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 completion of the transaction, the vice president now directly owns 1,827 shares of the company’s stock, valued at approximately $924,041.79. This represents a 65.70% decrease in their ownership of the stock. The disclosure for this sale can be found here. In related news, CEO Kathy J. Warden sold 7,500 shares of the stock in a transaction on Friday, June 13th. The stock was sold at an average price of $505.77, for a total value of $3,793,275.00. Following the completion of the transaction, the chief executive officer now directly owns 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 can be accessed through the SEC website.

Analyst Ratings Changes

A number of equities analysts have weighed in on the company. UBS Group lowered their price objective on Northrop Grumman from $583.00 to $571.00 and set a “buy” rating on the stock in a research note on Wednesday, April 23rd. Susquehanna lowered their price target on Northrop Grumman from $557.00 to $540.00 and set a “positive” rating for the company in a report on Wednesday, April 23rd. Argus upgraded Northrop Grumman to a “strong-buy” rating in a report on Wednesday, February 26th. Wells Fargo & Company set a $525.00 price target on Northrop Grumman and gave the stock an “overweight” rating in a report on Thursday, April 24th. Finally, Morgan Stanley increased their price target on Northrop Grumman from $580.00 to $625.00 and gave the stock an “overweight” rating in a report on Wednesday, April 16th. Nine investment analysts have rated the stock with a hold rating, nine have given a buy rating and one has assigned a strong buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $545.31.

Northrop Grumman Stock Performance

The company has a market cap of $71.52 billion, a price-to-earnings ratio of 17.53, a price-to-earnings-growth ratio of 3.73 and a beta of 0.14. The firm has a 50-day simple moving average of $491.10 and a 200 day simple moving average of $482.58. The company has a quick ratio of 0.91, a current ratio of 1.01 and a debt-to-equity ratio of 0.96.

Northrop Grumman (NYSE:NOC) last released its quarterly earnings results on Tuesday, April 22nd. The aerospace company reported $6.06 EPS for the quarter, missing the consensus estimate of $6.33 by ($0.27). The firm had revenue of $9.47 billion for the quarter, compared to analyst estimates of $10.07 billion. Northrop Grumman had a return on equity of 26.24% and a net margin of 10.17%. On average, sell-side analysts predict that Northrop Grumman Co. will post 28.05 earnings per share for the current fiscal year.

Northrop Grumman Increases Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 18th. Stockholders of record on Monday, June 2nd will be issued a $2.31 dividend. The ex-dividend date of this dividend is Monday, June 2nd. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.86%. This is a positive change from Northrop Grumman’s previous quarterly dividend of $2.06. Northrop Grumman’s payout ratio is presently 36.46%.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. IMA Advisory Services Inc. acquired a new position in shares of Northrop Grumman in the first quarter valued at approximately $27,000. Saudi Central Bank acquired a new position in shares of Northrop Grumman in the first quarter valued at approximately $28,000. Banque Cantonale Vaudoise acquired a new position in shares of Northrop Grumman in the first quarter valued at approximately $30,000. Whipplewood Advisors LLC purchased a new stake in shares of Northrop Grumman in the fourth quarter valued at approximately $31,000. Finally, Wood Tarver Financial Group LLC purchased a new stake in shares of Northrop Grumman in the fourth quarter valued at approximately $32,000. Institutional investors and hedge funds own 83.40% of the company’s stock.

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.