Short Interest in Northrop Grumman Co. (NYSE:NOC) Expands By 25.2%

Northrop Grumman Co. (NYSE:NOC) saw a significant increase in short interest in the month of December. As of December 15th, there was short interest totalling 2,040,000 shares, an increase of 25.2% from the November 30th total of 1,630,000 shares. Approximately 1.4% of the company’s shares are short sold. Based on an average daily trading volume, of 730,100 shares, the days-to-cover ratio is presently 2.8 days.

Northrop Grumman Stock Down 0.2 %

NYSE NOC traded down $0.88 on Friday, reaching $471.35. The company had a trading volume of 376,016 shares, compared to its average volume of 854,499. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.00. The company’s fifty day moving average is $495.05 and its 200 day moving average is $490.64. Northrop Grumman has a 52-week low of $418.60 and a 52-week high of $555.57. The stock has a market capitalization of $68.67 billion, a P/E ratio of 29.20, a P/E/G ratio of 0.97 and a beta of 0.33.

Northrop Grumman (NYSE:NOC) last announced its earnings results on Thursday, October 24th. The aerospace company reported $7.00 EPS for the quarter, beating the consensus estimate of $6.07 by $0.93. Northrop Grumman had a net margin of 5.79% and a return on equity of 26.57%. The company had revenue of $10 billion during the quarter, compared to the consensus estimate of $10.18 billion. During the same quarter in the prior year, the company posted $6.18 earnings per share. The firm’s revenue for the quarter was up 2.3% on a year-over-year basis. Sell-side analysts anticipate that Northrop Grumman will post 25.93 earnings per share for the current fiscal year.

Northrop Grumman Dividend Announcement

The firm also recently announced a quarterly dividend, which was paid on Wednesday, December 18th. Stockholders of record on Monday, December 2nd were paid a $2.06 dividend. The ex-dividend date was Monday, December 2nd. This represents a $8.24 dividend on an annualized basis and a dividend yield of 1.75%. Northrop Grumman’s payout ratio is presently 51.05%.

Northrop Grumman announced that its Board of Directors has approved a share buyback plan on Wednesday, December 11th that allows the company to buyback $3.00 billion in shares. This buyback authorization allows the aerospace company to repurchase up to 4.3% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its stock is undervalued.

Wall Street Analyst Weigh In

Several analysts have recently weighed in on NOC shares. TD Cowen upgraded shares of Northrop Grumman to a “hold” rating in a research note on Tuesday, October 8th. UBS Group lifted their price target on shares of Northrop Grumman from $614.00 to $643.00 and gave the company a “buy” rating in a research note on Friday, October 25th. JPMorgan Chase & Co. increased their price objective on shares of Northrop Grumman from $500.00 to $560.00 and gave the stock a “neutral” rating in a research report on Monday, October 14th. Citigroup boosted their target price on Northrop Grumman from $521.00 to $587.00 and gave the company a “neutral” rating in a research report on Thursday, October 10th. Finally, Barclays increased their price target on Northrop Grumman from $500.00 to $550.00 and gave the stock an “equal weight” rating in a report on Tuesday, October 29th. Ten research analysts have rated the stock with a hold rating and six have assigned a buy rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $553.27.

Insider Transactions at Northrop Grumman

In related news, VP Benjamin R. Davies sold 1,156 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $532.93, for a total transaction of $616,067.08. Following the completion of the sale, the vice president now owns 537 shares of the company’s stock, valued at $286,183.41. This trade represents a 68.28 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Insiders sold a total of 1,255 shares of company stock worth $666,461 over the last three months. 0.22% of the stock is owned by company insiders.

Institutional Trading of Northrop Grumman

A number of hedge funds have recently bought and sold shares of NOC. RPg Family Wealth Advisory LLC purchased a new stake in shares of Northrop Grumman during the 3rd quarter valued at $31,000. FSA Wealth Management LLC purchased a new stake in Northrop Grumman during the third quarter worth about $36,000. Meeder Asset Management Inc. raised its position in Northrop Grumman by 245.5% in the second quarter. Meeder Asset Management Inc. now owns 76 shares of the aerospace company’s stock worth $33,000 after acquiring an additional 54 shares during the period. Catalyst Capital Advisors LLC purchased a new position in Northrop Grumman in the third quarter valued at about $40,000. Finally, True Wealth Design LLC bought a new position in shares of Northrop Grumman during the 3rd quarter valued at approximately $53,000. 83.40% of the stock is currently owned by institutional investors.

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.