Northrop Grumman (NYSE: NOC) is a global defense company that designs and manufactures advanced aircraft, space systems, and missile defense technologies for the U.S. military and its allies. The company’s stock recently traded at about $590 per share and has a market capitalizationof approximately $84.5 billion.
Once known primarily for its aerospace programs, Northrop has diversified into space systems and advanced defense platforms, becoming a major player in the national security arena. Consistent government spending and long-term contracts have made Northrop a reliable name for institutional investors seeking stability in an uncertain market.
Northrop’s work on programs such as the B-21 stealth bomber and missile warning satellites gives it a competitive advantage that cannot be easily replicated. Although historically insiders and management have had a significant stake, Northrop’s shares are now held primarily by large asset managers, pension plans, and hedge funds.
By understanding the behavior of NOC’s owners and insiders, we can understand what the big players are really saying about the stock right now.
Who are the major shareholders in Northrop Grumman?
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Northrop Grumman is one of the world’s largest defense contractors, producing advanced aircraft, space systems, and missile defense technologies. Northrop Grumman’s shareholder base is dominated by large asset managers, with a small number of active funds making inroads.
- State Street Global Advisors: 13.4 million shares (9.38%), about $7.9 billion. Decline of 25.9 million shares (-0.2%).
- Pioneer Group 13.4 million shares (9.33%), valued at $7.9 billion. 154,000 shares added (+1.2%).
- Capital International Investors: 12 million shares (8.36%), valued at $7.1 billion. Added 3.1 million shares (+35%).
- BlackRock: 7.2 million shares (5.0%), valued at about $4.2 billion. Decrease in holdings of 451,000 shares (-5.9%).
- Wellington Management holds 5.50 million shares, or 3.8 percent of its portfolio, valued at $3.32 billion. An increase of 3.65 million shares (+7.1 percent).
- Geode Capital: 3.1 million shares (2.2%), valued at $1.8 billion. Slight increase (+0.5%).
- Morgan Stanley: 2.9 million shares (2.0%), about $1.7 billion. Citigroup: 7.78 million shares (+2.8%).
- Capital World Investors: 2.6 million shares (1.8%), valued at $1.5 billion. Added 658,000 shares (+34%).
- T.Rowe price: 2.5 million shares (1.7%), about $1.5 billion. 448,000 shares added (+22%).
- JPMorgan Asset Management: 2 million shares or 1.4% or about $1.2 billion. Decrease of 103,000 shares or -4.9%.
- Sanders Capital: 2 million shares (1.4%), valued at about $1.2 billion. Reduction of 38,000 shares (-1.9%).
Addison Capital Partners, led by Robert Atchinson and Philip Gross, has been a major participant, increasing its stake in Northrop by 322 percent in the last quarter, buying some 111,000 shares worth $55 million. This aggressive increase in participation is seen as a strong sign of confidence in the stock.
Another significant move was Squarepoint Ops LLC, which increased its position 128 percent to nearly 18,000 shares, worth $9 million . For systematic trading firms, this increase could mean an intensification of tactical bets on defensive risks.
At the same time, Mario Gabelli’s company, Gamco Investments, increased its stake by nearly 100 percent, buying more than 3,000 shares worth $1.6 million. Although modest, this increase could be a sign of selective optimism on the part of the value-oriented manager.
Significant gains by Capital International and Capital World may indicate greater confidence in Northrop’s role in future defense spending. BlackRock’s decline suggests that some managers are taking a more cautious stance.
For investors, the mixed trends suggest that optimism exists, but it is not widespread.
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Recent insider transactions at Northrop Grumman Corporation.
Insider trading at Northrop Grumman has been very active in recent months, giving investors insight into how the company’s executives manage their personal risks. Most of the transactions have involved the sale of stock by executives, with only a few small purchases by directors.
Here is a recent example of an inside sale
- Thomas H. Jones (Director): Sold about 729 shares in July at a price of $525.
- Mark A. Welsh III (Director): Sold 1 to 21 shares in July worth $503 to $509.
- Kathy J. Wharton (CEO): In June we sold about 7,500 shares at $506 and 3,750 shares at $495.
- Robert J. Fleming (Director): Sold about 3,500 shares in June for $506.
- Marianne Catherine Brown (Director): I bought about 93 shares in June for $500.
- Arvind Krishna (Director): I bought about 73 shares in June for $500.
Most activities seem to favor selling, particularly by CEOs and senior managers, which could reflect corporate diversification or personal planning, but could also be interpreted as a sign of caution as stock prices approach their recent peaks.
Although the purchase values of small administrators are not high, we can see that there is at least some willingness to take risks.
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What can be learned from data on ownership and insider trading?
Northrop’s shareholders are mainly State Street and Vanguard, which link the shares to global index streams. Active fund managers, such as Capital International and Capital World, have significantly increased their holdings of Northrop shares, likely reflecting their growing confidence in the benefits of defense spending. In contrast, BlackRock and JP Morgan reduced their positions, suggesting that not all institutions share the same optimism.
Insider activity, led by CEOs and other executives, appears to favor selling, with token purchases by directors. The absence of insider purchases may indicate that management does not wish to increase its holdings at current valuation levels.
The signals are mixed. Institutional opinion is mixed but tends to be constructive, while insiders are more cautious. This combination suggests that Northrop is seen as a stable long-term defense company, but that expectations may be more cautious at current levels.
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