Hedge Funds Aren’t Crazy About Northrop Grumman Corporation (NOC) Anymore

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Is Northrop Grumman Corporation (NYSE:NOC) now a sell?

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Northrop Grumman Corporation (NYSE:NOC)

Thus, we’re going to examine the latest info surrounding Northrop Grumman Corporation (NYSE:NOC).

What does the smart money think about Northrop Grumman Corporation (NYSE:NOC)?

Heading into Q3, a total of 24 of the hedge funds we track held long positions in this stock, a change of -14% from the previous quarter. With the smart money’s sentiment swirling, there exists a few key hedge fund managers who were boosting their stakes substantially.

According to our 13F database, Matt McLennan’s First Eagle Investment Management had the largest position in Northrop Grumman Corporation (NYSE:NOC), worth close to $649.3 million, comprising 2% of its total 13F portfolio. Coming in second is Natixis Global Asset Management of Harris Associates, with a $396.1 million position; 0.8% of its 13F portfolio is allocated to the company. Remaining peers that are bullish include Richard S. Pzena’s Pzena Investment Management, Cliff Asness’s AQR Capital Management and Ken Griffin’s Citadel Investment Group.

Judging by the fact that Northrop Grumman Corporation (NYSE:NOC) has experienced declining interest from the smart money’s best and brightest, we can see that there was a specific group of hedge funds that elected to cut their positions entirely at the end of the second quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital dumped the largest stake of the “upper crust” of funds we monitor, valued at an estimated $46.3 million in stock. Jonathon Jacobson’s fund, Highfields Capital Management, also dumped its stock, about $30.6 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest was cut by 4 funds at the end of the second quarter.

How have insiders been trading Northrop Grumman Corporation (NYSE:NOC)?

Insider buying made by high-level executives is most useful when the primary stock in question has experienced transactions within the past six months. Over the latest six-month time frame, Northrop Grumman Corporation (NYSE:NOC) has seen zero unique insiders buying, and zero insider sales (see the details of insider trades here).

We’ll also review the relationship between both of these indicators in other stocks similar to Northrop Grumman Corporation (NYSE:NOC). These stocks are Gencorp Inc (NYSE:GY), AerCap Holdings N.V. (NYSE:AER), Textron Inc. (NYSE:TXT), and Raytheon Company (NYSE:RTN). This group of stocks are the members of the aerospace/defense – major diversified industry and their market caps are closest to NOC’s market cap.

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