4. Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD)
Number of Hedge Fund Holders: 29
Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) is a California-based company that makes and sells aerospace and defense products. It is placed fourth on our list of 10 best space stocks to buy now.
In earnings results for the second quarter, posted on July 26, Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) reported earnings per share of $0.59, beating market predictions by $0.15. The revenue over the period was $556 million, beating estimates by $21 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Steel Partners is a leading shareholder in Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) with 3.9 million shares worth more than $190 million.
3. Northrop Grumman Corporation (NYSE: NOC)
Number of Hedge Fund Holders: 42
Northrop Grumman Corporation (NYSE: NOC) is a Virginia-based aerospace and defense firm. It is ranked third on our list of 10 best space stocks to buy now.
On June 4, investment advisory Stifel upgraded Northrop Grumman Corporation (NYSE: NOC) stock to Buy from Hold and raised the price target to $475 from $350, identifying the company as a quality defense business.
At the end of the second quarter of 2021, 42 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Northrop Grumman Corporation (NYSE: NOC), up from 40 in the preceding quarter worth $1.5 billion.
In its Q4 2020 investor letter, Artisan Partners Limited Partnership, an asset management firm, highlighted a few stocks and Northrop Grumman Corporation (NYSE: NOC) was one of them. Here is what the fund said:
“New purchases include Northrop Grumman. Northrop Grumman is a leader in manned aircraft, unmanned aircraft, spacecraft and missile-defense systems. We initiated a position in November 2020, as we believe the name is trading at an undeserved discount, despite having the potential to accelerate revenue over the next 24 months. In 2020, Northrup signed a contract to work with the US Air Force on their Ground Based Strategic Deterrent (GBSD) and B21 bomber. We believe the company’s portfolio is well-positioned with a highly desirable space segment business, significant classified content and GBSD driving growth. While the market has been focused on a “blue wave” risk to the defense budget, the industry is typically driven by threat assessment rather than budget constraints. If budget cuts were ever to affect the US Army, that customer represents less than 10% of the company’s revenue. This reinforces our belief that Northrop is well-positioned for the future and trades at an attractive valuation.”
