Hennion & Walsh Asset Management Inc. has significantly enhanced its investment in Northrop Grumman Corporation, increasing its holdings by 23.2% during the third quarter of 2023. The asset management firm now owns 9,512 shares of the aerospace giant, valued at approximately $5.80 million at the close of the reporting period.
The firm’s acquisition of an additional 1,792 shares reflects growing confidence in Northrop Grumman, which trades on the New York Stock Exchange under the ticker symbol NOC. Other institutional investors have also been active in adjusting their positions in the company. For instance, Parvin Asset Management LLC acquired a new stake valued at around $25,000 during the second quarter.
NewSquare Capital LLC demonstrated a notable increase in its investment, raising its holdings by 75% during the same period. The firm now owns 63 shares worth approximately $31,000, following the purchase of an additional 27 shares. Similarly, Twin Peaks Wealth Advisors LLC entered the market with a new position valued at about $31,000.
Hennion & Walsh’s actions are part of a broader trend, as institutional investors currently hold an impressive 83.40% of Northrop Grumman’s stock. This indicates strong institutional confidence in the company, which has consistently delivered strong performance metrics.
Analysts Provide Insight on Northrop Grumman
A number of financial institutions have updated their assessments of Northrop Grumman following these developments. On October 22, 2023, JPMorgan Chase & Co. raised its price target from $575.00 to $640.00, maintaining a “neutral” rating. Similarly, BTIG Research increased its target to $680.00, while UBS Group set a target of $770.00 with a “buy” rating.
The average rating among analysts currently stands at “Moderate Buy,” with a consensus target price of $651.18. This positive sentiment is bolstered by Northrop Grumman’s recent earnings report, which exceeded market expectations.
During its last quarterly earnings call on October 21, 2023, Northrop Grumman reported earnings per share (EPS) of $7.67, surpassing the consensus estimate of $6.43 by $1.24. The company achieved a net margin of 9.82% and a return on equity of 25.49%, showcasing its robust financial health.
Stock Performance and Insider Activity
Northrop Grumman’s stock opened at $610.95 on the most recent trading day, with a market capitalization of $87.20 billion. The stock has experienced notable fluctuations over the past year, with a low of $426.24 and a high of $640.90. Its price-to-earnings ratio currently stands at 21.98, indicating a solid growth outlook.
In terms of insider trading, Director Mark A. Welsh III sold 97 shares on November 24, 2023, for a total of $54,715.76. Following this transaction, Welsh holds 4,281 shares valued at approximately $2.41 million, reflecting a 2.22% decrease in his position.
The company has also declared a quarterly dividend, which was paid on December 17, 2023. Shareholders of record on December 1 received a dividend of $2.31, translating to an annualized dividend of $9.24 and a yield of 1.5%. The dividend payout ratio stands at 33.24%, further illustrating the company’s commitment to returning value to its shareholders.
Northrop Grumman Corporation is a key player in the aerospace and defense sector, providing advanced systems and technologies to government and commercial clients. Established from a merger of two prominent companies in the 1990s, its portfolio includes manned and unmanned aircraft, space systems, missile defense, and cybersecurity services.
As Northrop Grumman continues to position itself for future growth, the recent movements by institutional investors and analysts alike indicate a strong belief in the company’s ongoing success and stability in the competitive aerospace landscape.
