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NORTHROP GRUMMAN CORP /DE/ 8-K Report, Corporate Update (Feb 1, 2021)

Reports
Other Events·Exhibits & Filings
Filing Date
Filed February 1, 2021
Period End
February 1, 2021
Security
NOC
In the record · 2016–202610-K1110-Q328-K121

NOC filed 11 annual reports (10-K), 32 quarterly reports (10-Q) and 121 current reports (8-K) between 2016 and 2026.

  1. Deal closed8-K · Jun ’18Jun ’18
  2. Material agreement8-K · Mar ’20Mar ’20
  3. Leadership change8-K · Nov ’22Nov ’22
  4. Leadership change8-K · Aug ’26Aug ’26

01—Abstract

Summary

Summary of the 8-K filed February 1, 2021. Cited figures are marked; the original filing is the authoritative source.

Northrop Grumman Corporation (NOC) announced on February 1, 2021, that it has entered into a $2 billiona accelerated share repurchase (ASR) agreement with Goldman Sachs.

This move signals a strong commitment by the company to return capital to shareholders and reflects confidence in its financial position and future prospects. The ASR is part of the company's existing share repurchase authorization and is expected to be completed by the second quarter of 2021. Approximately 5.9 million shares are set to be repurchased initially, with the final number to be determined based on the volume-weighted average price of the stock during the ASR term, subject to a discount.

This initiative is a significant capital allocation decision that could positively impact earnings per share by reducing the number of outstanding shares. Investors should monitor the completion of this repurchase and its impact on future financial statements.

02—Key points

Key Highlights

  1. Northrop Grumman entered into a $2 billion Accelerated Share Repurchase (ASR) agreement.
  2. The ASR is with Goldman Sachs & Co. LLC.
  3. The repurchase is part of the company's existing share repurchase authorization.
  4. Approximately 5.9 million shares are expected to be repurchased initially.
  5. The final number of shares repurchased will be based on the volume-weighted average price, less a discount.
  6. The ASR transaction is expected to be completed in the second quarter of 2021.
  7. This action demonstrates a commitment to returning capital to shareholders.

03—Questions

Frequently Asked Questions

  1. What is an Accelerated Share Repurchase (ASR) agreement?

    An Accelerated Share Repurchase (ASR) agreement is a transaction where a company buys back its own stock from a financial institution, typically a bank. The company usually receives a portion of the shares immediately, and the final number of shares repurchased is determined at a later date based on the market price over a specified period.

  2. Why is Northrop Grumman repurchasing its stock?

    Northrop Grumman is repurchasing its stock as part of its commitment to returning capital to shareholders. This also suggests that management believes the company's stock is undervalued and that repurchasing shares is a good use of its capital.

  3. How will this ASR affect the stock price?

    Share repurchases generally have a positive impact on stock prices by reducing the number of outstanding shares, which can increase earnings per share (EPS) and make the stock appear more attractive to investors. The actual impact will depend on market conditions and investor sentiment at the time of completion.

  4. When will the full impact of this share repurchase be seen?

    The ASR agreement is expected to be completed in the second quarter of 2021. The full impact on the number of outstanding shares and potentially on earnings per share will be reflected in the company's financial statements following the completion of the transaction and final settlement.

04—Continue

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