Smith Salley Wealth Management Cuts Stake in Northrop Grumman Co. (NYSE:NOC)

Smith Salley Wealth Management lessened its holdings in Northrop Grumman Co. (NYSE:NOC) by 11.6% during the fourth quarter, Holdings Channel.com reports. The firm owned 21,149 shares of the aerospace company’s stock after selling 2,767 shares during the quarter. Smith Salley Wealth Management’s holdings in Northrop Grumman were worth $9,925,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in NOC. RPg Family Wealth Advisory LLC purchased a new stake in Northrop Grumman during the 3rd quarter valued at about $31,000. FSA Wealth Management LLC purchased a new stake in shares of Northrop Grumman during the third quarter valued at approximately $36,000. Catalyst Capital Advisors LLC bought a new position in shares of Northrop Grumman in the third quarter worth approximately $40,000. Modus Advisors LLC purchased a new position in shares of Northrop Grumman in the fourth quarter worth $38,000. Finally, True Wealth Design LLC bought a new stake in Northrop Grumman during the 3rd quarter valued at $53,000. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Northrop Grumman Stock Performance

Northrop Grumman stock opened at $482.49 on Friday. The stock’s 50 day moving average is $480.55 and its 200 day moving average is $493.71. The company has a market capitalization of $70.30 billion, a P/E ratio of 29.89, a PEG ratio of 0.87 and a beta of 0.35. Northrop Grumman Co. has a twelve month low of $418.60 and a twelve month high of $555.57. The company has a quick ratio of 0.97, a current ratio of 1.09 and a debt-to-equity ratio of 1.00.

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

Northrop Grumman announced that its Board of Directors has approved a share repurchase program on Wednesday, December 11th that authorizes the company to repurchase $3.00 billion in shares. This repurchase authorization authorizes the aerospace company to repurchase up to 4.3% of its stock through open market purchases. Stock repurchase programs are usually a sign that the company’s leadership believes its stock is undervalued.

Northrop Grumman Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Wednesday, December 18th. Stockholders of record on Monday, December 2nd were issued a dividend of $2.06 per share. This represents a $8.24 dividend on an annualized basis and a dividend yield of 1.71%. The ex-dividend date of this dividend was Monday, December 2nd. Northrop Grumman’s payout ratio is 51.05%.

Insider Activity at Northrop Grumman

In related news, VP Benjamin R. Davies sold 1,156 shares of the stock in a transaction 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 sale, the vice president now directly 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 filing with the SEC, which is available at the SEC website. Insiders sold 1,255 shares of company stock valued at $663,859 over the last 90 days. Corporate insiders own 0.22% of the company’s stock.

Wall Street Analysts Forecast Growth

A number of equities research analysts have issued reports on NOC shares. TD Cowen raised shares of Northrop Grumman to a “hold” rating in a report on Tuesday, October 8th. StockNews.com upgraded Northrop Grumman from a “buy” rating to a “strong-buy” rating in a report on Sunday. Royal Bank of Canada lifted their price objective on Northrop Grumman from $500.00 to $540.00 and gave the stock a “sector perform” rating in a research report on Friday, October 25th. Barclays decreased their target price on Northrop Grumman from $550.00 to $500.00 and set an “equal weight” rating for the company in a report on Monday, January 6th. Finally, Truist Financial assumed coverage on shares of Northrop Grumman in a report on Tuesday, January 14th. They issued a “buy” rating and a $544.00 price target on the stock. Nine investment analysts have rated the stock with a hold rating, seven have issued a buy rating and one has given a strong buy rating to the company’s stock. Based on data from MarketBeat, Northrop Grumman presently has an average rating of “Moderate Buy” and an average price target of $550.94.

Northrop Grumman 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.