Northrop Grumman (NYSE:NOC) Shares Gap Down on Disappointing Earnings

Shares of Northrop Grumman Co. (NYSE:NOC - Get Free Report) gapped down before the market opened on Tuesday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $531.33, but opened at $484.75. Northrop Grumman shares last traded at $464.30, with a volume of 789,256 shares changing hands.

The aerospace company reported $6.06 earnings per share for the quarter, missing the consensus estimate of $6.33 by ($0.27). The business 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%.

Northrop Grumman Dividend Announcement

The business also recently announced a quarterly dividend, which was paid on Wednesday, March 19th. Stockholders of record on Monday, March 3rd were given a dividend of $2.06 per share. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $8.24 annualized dividend and a dividend yield of 1.78%. Northrop Grumman's payout ratio is currently 29.08%.

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on NOC shares. Morgan Stanley boosted their price target on Northrop Grumman from $580.00 to $625.00 and gave the company an "overweight" rating in a report on Wednesday, April 16th. Barclays decreased their target price on Northrop Grumman from $550.00 to $500.00 and set an "equal weight" rating on the stock in a research report on Monday, January 6th. Truist Financial reduced their price target on Northrop Grumman from $600.00 to $550.00 and set a "buy" rating on the stock in a research report on Wednesday. Argus upgraded Northrop Grumman to a "strong-buy" rating in a research note on Wednesday, February 26th. Finally, Wolfe Research raised shares of Northrop Grumman from an "underperform" rating to a "peer perform" rating in a research note on Monday, February 3rd. Ten research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $542.94.

Insiders Place Their Bets

In other Northrop Grumman news, CEO Kathy J. Warden sold 3,750 shares of Northrop Grumman stock in a transaction that occurred on Thursday, March 6th. The stock was sold at an average price of $475.65, for a total value of $1,783,687.50. Following the sale, the chief executive officer now owns 212,852 shares of the company's stock, valued at approximately $101,243,053.80. The trade was a 1.73 % decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, VP Benjamin R. Davies sold 464 shares of the business's stock in a transaction that occurred on Friday, February 28th. The stock was sold at an average price of $460.75, for a total value of $213,788.00. Following the sale, the vice president now directly owns 245 shares in the company, valued at $112,883.75. This trade represents a 65.44 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold a total of 4,505 shares of company stock worth $2,127,182 in the last ninety days. 0.23% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the stock. Prakash Investment Advisors LLC bought a new stake in Northrop Grumman during the 1st quarter valued at $205,000. Cohen Investment Advisors LLC raised its position in Northrop Grumman by 4,948.8% during the first quarter. Cohen Investment Advisors LLC now owns 289,801 shares of the aerospace company's stock valued at $148,381,000 after buying an additional 284,061 shares during the period. Aljian Capital Management LLC grew its position in Northrop Grumman by 3.7% during the first quarter. Aljian Capital Management LLC now owns 10,266 shares of the aerospace company's stock valued at $5,256,000 after purchasing an additional 370 shares in the last quarter. Colonial River Investments LLC purchased a new position in Northrop Grumman in the first quarter valued at about $364,000. Finally, Master S Wealth Management Inc. acquired a new stake in shares of Northrop Grumman in the 1st quarter valued at $209,000. 83.40% of the stock is owned by institutional investors and hedge funds.

Northrop Grumman Stock Up 0.0 %

The business has a 50 day moving average price of $491.00 and a 200 day moving average price of $490.65. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.01 and a quick ratio of 0.91. The firm has a market capitalization of $66.78 billion, a P/E ratio of 16.33, a price-to-earnings-growth ratio of 3.73 and a beta of 0.20.

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.