AXQ Capital LP Acquires Shares in Northrop Grumman Co.

AXQ Capital LP has made a new investment in Northrop Grumman Co. (NYSE:NOC) during the fourth quarter. According to the most recent 13F filing with the Securities and Exchange Commission, the company acquired 3,256 shares of the aerospace firm, with an estimated value of approximately $1,528,000. This investment constitutes about 0.7% of AXQ Capital LP's overall portfolio, positioning Northrop Grumman as its 15th largest holding.

In addition to AXQ Capital LP, numerous other institutional investors have also engaged in trading activities involving shares of Northrop Grumman. For instance, Citizens Financial Group Inc. RI increased its stake by 24.6% in the third quarter, now owning 6,980 shares valued at around $3,686,000 after acquiring an additional 1,379 shares. Similarly, King Luther Capital Management Corp raised its stake by 7.6%, while LPL Financial LLC augmented its holdings by 4.0% in the same quarter. Moreover, Thompson Siegel & Walmsley LLC and Integrated Investment Consultants LLC have each made noteworthy adjustments to their holdings, demonstrating the growing interest in the stock.

Northrop Grumman Stock Overview

The shares of Northrop Grumman opened at $492.25 on Friday, showing a debt-to-equity ratio of 0.96. The current and quick ratios stand at 1.01 and 0.91, respectively. The stock's fifty-day moving average is $475.18, with a two-hundred-day moving average of $493.53. Over the past year, Northrop Grumman's stock has fluctuated between a low of $418.60 and a high of $555.57. The company has a market capitalization of $71.26 billion and a price-to-earnings ratio of 17.37.

Recently, Northrop Grumman released its quarterly earnings report on January 30th, revealing an EPS of $6.39, surpassing estimates of $6.27. The company reported a return on equity of 26.24% and a net margin of 10.17%. Analysts forecast an EPS of 28.05 for the current year.

Additionally, Northrop Grumman's Board of Directors has approved a significant share buyback plan, allowing for repurchases of up to $3.00 billion in shares, equating to approximately 4.3% of its outstanding shares. Such buyback plans often indicate the board's belief that the stock is undervalued, reflecting a strategic move towards enhancing shareholder value.

Dividend Information

Northrop Grumman has also declared a quarterly dividend, paid on March 19th. Shareholders on record as of March 3rd received a dividend of $2.06 per share, totaling an annualized dividend of $8.24, which results in a dividend yield of 1.67%. This payout reflects a dividend payout ratio of 29.08%.

Insider Trades

Recent insider transactions reveal VP Benjamin R. Davies sold 464 shares on February 28th at an average price of $460.75. This transaction led to a significant reduction in his ownership. Furthermore, CEO Kathy J. Warden sold 3,750 shares on March 6th at an average price of $475.65, representing a 1.73% decrease in her ownership. Collectively, insiders have sold 4,505 shares totaling over $2 million in the last three months, with corporate insiders owning about 0.22% of the stock.

Analyst Ratings

A variety of brokerages have recently updated their ratings for Northrop Grumman. Notably, Citigroup raised its price target from $587.00 to $591.00, while Argus upgraded the stock to a "strong buy" rating. Wolfe Research also made positive adjustments, shifting from an "underperform" to a "peer perform" rating. Overall, analysts appear optimistic, with nine rating the stock as a hold, nine issuing buy ratings, and one giving a strong buy rating. The average rating is classified as a "Moderate Buy," with a consensus price target of $542.88.

About Northrop Grumman

Northrop Grumman Corporation is a defense technology company that operates globally, specializing in aerospace systems among other sectors. Its Aeronautics Systems segment is notable for designing and manufacturing various aircraft systems, including unmanned aircraft, tactical fighters, and advanced command and control systems.

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