Mount Yale Investment Advisors LLC Boosts Stock Position in Northrop Grumman Co.
Mount Yale Investment Advisors LLC significantly increased its investment in Northrop Grumman Co. (NYSE:NOC) by 1,284.4% in the fourth quarter, based on its recent disclosure with the Securities & Exchange Commission. The investment firm purchased an additional 6,820 shares, bringing its total ownership to 7,351 shares of the aerospace company’s stock, valued at $3,450,000 as of its recent filing.
This move highlights Mount Yale Investment Advisors LLC’s strategic decision to increase its stake in Northrop Grumman, reflecting a positive outlook on the company’s performance and potential. This substantial purchase is a notable increase in confidence from a major institutional investor, suggesting optimism toward the company’s future growth.
In addition to Mount Yale, several other institutional investors have adjusted their stock positions in Northrop Grumman. For instance, RPg Family Wealth Advisory LLC, Albion Financial Group UT, FSA Wealth Management LLC, Modus Advisors LLC, and Catalyst Capital Advisors LLC have all acquired new stakes in the company, with acquisitions valued up to approximately $40,000. Today, hedge funds and institutional investors hold 83.40% of Northrop Grumman’s stock.
The stock opened at $497.13 on Monday, showcasing its strong market presence. Northrop Grumman’s financial health is underscored by a debt-to-equity ratio of 1.00, a current ratio of 1.09, and a quick ratio of 0.97. The company’s market capitalization stands at $72.43 billion, with a P/E ratio of 30.80, a P/E/G ratio of 0.95, and a beta of 0.35. The stock’s performance shows a 50-day moving average of $478.66 and a 200-day moving average of $496.86, with a 12-month range between a low of $418.60 and a high of $555.57.
Northrop Grumman reported an impressive quarterly earnings result on October 24th, with earnings per share of $7.00, surpassing the consensus estimate of $6.07. This marks a significant improvement from the previous year, where earnings per share stood at $6.18. Revenue for the quarter reached $10 billion, reflecting a 2.3% year-over-year increase. As a result, analysts forecast Northrop Grumman Co. to post an EPS of 25.96 for the current fiscal year.
The company’s board of directors has initiated a stock repurchase program authorizing the repurchase of $3.00 billion in outstanding shares. This program, which enables the purchase of approximately 4.3% of stock through open market transactions, indicates the board’s belief in the stock being undervalued. Furthermore, Northrop Grumman declared a quarterly dividend of $2.06 per share, equating to an annualized dividend of $8.24 and a yield of 1.66%.
In related news, insider trading activity has been observed. VP Benjamin R. Davies sold 1,156 shares at an average price of $532.93, totaling $616,067.08. After the transaction, the vice president still retains 537 shares, valued at $286,183.41. Within 90 days, insiders sold a total of 1,255 shares, highlighting ongoing confidence in the value of Northrop Grumman stock.
The equities research analysts have shared varied perspectives on Northrop Grumman’s stock market performance. Barclays reduced their price objective from $550.00 to $500.00, offering an “equal weight” rating. In contrast, Truist Financial initiated coverage with a “buy” rating and a target price of $544.00. Citigroup upgraded the stock from “neutral” to “buy,” setting a price objective at $587.00. Other analysts also offered favorable assessments, aligning with a consensus “Moderate Buy” rating and an average target price of $550.94.
Northrop Grumman operates as a leading aerospace and defense technology company, with a global reach spanning the United States, Asia/Pacific, and Europe. The company’s Aeronautics Systems segment is instrumental in designing, developing, and sustaining aircraft systems. The segment also provides unmanned autonomous aircraft systems, strategic ISR systems, and strategic strike aircraft, showcasing its diverse portfolio in defense technology.
Overall, with heightened interest from institutional investors and a strong market performance, Northrop Grumman remains a dynamic player in the aerospace and defense sector. The substantial increase in stock holdings by Mount Yale Investment Advisors LLC reflects continued confidence in Northrop Grumman’s capabilities and future growth prospects.
