Geneos Wealth Management Inc. has significantly reduced its holdings in Northrop Grumman Corporation (NYSE:NOC) by 61.6% during the third quarter of 2023. According to a recent filing with the U.S. Securities and Exchange Commission (SEC), the firm now owns 943 shares of the aerospace giant after divesting 1,511 shares in the period. At the end of the quarter, Geneos Wealth Management’s stake in Northrop Grumman was valued at approximately $575,000.
This reduction in stake is not an isolated incident. Other institutional investors have also adjusted their positions in Northrop Grumman recently. For instance, Parvin Asset Management LLC acquired a new position valued at around $25,000 during the second quarter, while Twin Peaks Wealth Advisors LLC invested approximately $31,000 in the same timeframe. NewSquare Capital LLC increased its holdings by 75.0%, owning 63 shares valued at $31,000 after purchasing an additional 27 shares. Similarly, AlphaQuest LLC raised its stake by 29.2%, now holding 93 shares worth $46,000, and City Holding Co. expanded its position by 138.1%, owning 100 shares valued at $50,000. Institutional investors collectively hold around 83.4% of Northrop Grumman’s stock.
Insider Transactions and Stock Performance
In related developments, Mark A. Welsh III, a director at Northrop Grumman, sold 97 shares on November 24, 2023, at an average price of $564.08, totaling approximately $54,715.76. Following this transaction, he owns 4,281 shares valued at about $2,414,826.48. Similarly, Kathy J. Warden, the company’s CEO, sold 7,000 shares on January 5, 2024, for a total of $4,200,000.00. After this sale, she retained 194,602 shares worth around $116,761,200. Over the past three months, Northrop Grumman insiders have sold a total of 10,097 shares, valued at $6,099,716, with insiders holding 0.23% of the company’s stock.
As of the last trading session, shares of Northrop Grumman opened at $619.31. The company boasts a market capitalization of $88.39 billion, a price-to-earnings ratio of 22.28, and a beta of 0.05. The stock has fluctuated between a 12-month low of $426.24 and a high of $640.90. According to the latest earnings report released on October 21, Northrop Grumman reported earnings per share (EPS) of $7.67, exceeding the consensus estimate of $6.43 by $1.24. The company achieved revenue of $10.42 billion, slightly below the forecast of $10.68 billion.
Dividend and Future Outlook
Northrop Grumman has also declared a quarterly dividend, which was paid on December 17, 2023. Shareholders recorded on December 1 received a dividend of $2.31, representing an annualized dividend of $9.24 and a yield of 1.5%. The company’s dividend payout ratio stands at 33.24%.
Looking ahead, Northrop Grumman has set its fiscal year 2025 EPS guidance between $25.650 and $26.050. Analysts project that the company will report an EPS of $28.05 for the current fiscal year.
Recent news has also influenced market sentiment towards Northrop Grumman. Following former President Donald Trump’s proposal for a $1.5 trillion defense budget for 2027, defense stocks, including Northrop, experienced a boost in investor confidence regarding increased government spending. Additionally, Northrop was awarded a significant $94.3 million contract for solid rocket motors by the Navy, further enhancing its revenue outlook.
Despite these positive developments, some analysts note potential risks, including Trump’s recent orders limiting stock buybacks and executive pay for underperforming contractors. This policy change could impact shareholder returns and has resulted in selling pressure across the sector.
As Northrop Grumman navigates these complexities, analysts from various firms continue to express optimism. BNP Paribas upgraded the stock to a “strong-buy” rating, while Morgan Stanley set a target price of $714.00. Current consensus ratings indicate a “Moderate Buy” with a price target averaging $647.35.
Overall, Northrop Grumman remains a key player in the aerospace and defense sector, demonstrating resilience in its financial performance while adapting to evolving market conditions.
