Insider Trading February 20, 2026

Northrop Grumman General Counsel Sells $141K in Stock as Company Posts Quarter Beat and Secures Contract

Transaction executed under 10b5-1 plan; defense contractor posts stronger-than-expected Q4 results and wins $198M spares order

By Avery Klein NOC
Northrop Grumman General Counsel Sells $141K in Stock as Company Posts Quarter Beat and Secures Contract
NOC

Kathryn G. Simpson, Northrop Grumman vice president and general counsel, disposed of 194 shares on February 19, 2026, in a trade governed by a pre-set Rule 10b5-1 plan. The company also reported fourth-quarter 2025 results above consensus, received a $198 million contract for E-2D Advanced Hawkeye power amplifier module spares, saw its dividend declared, and added a retired admiral to the board. Separately, fair value estimates indicate the stock appears overvalued.

Key Points

  • Corporate insider Kathryn G. Simpson sold 194 shares under a Rule 10b5-1 plan, leaving her with 874.39 shares.
  • Northrop Grumman beat Q4 2025 expectations with EPS of $7.23 and revenue of $11.7 billion.
  • The company won a $198 million contract for 608 power amplifier module spares for the E-2D Advanced Hawkeye; Bernstein raised its price target to $765 and the board declared a $2.31 quarterly dividend.

Kathryn G. Simpson, who serves as Corporate Vice President and General Counsel at Northrop Grumman Corporation (NYSE: NOC), sold 194 shares of the company's common stock on February 19, 2026. The shares changed hands at $727.62 apiece, yielding a total transaction value of $141,158.

Following the disposition, Simpson retains direct ownership of 874.39 shares of Northrop Grumman stock. The sale was carried out under a pre-established Rule 10b5-1 trading plan that was adopted on February 28, 2025.

Separately, Northrop Grumman reported fourth-quarter results for fiscal 2025 that exceeded analysts' consensus. The company posted earnings per share of $7.23, compared with the consensus estimate of $7.04, while revenue for the quarter reached $11.7 billion versus an anticipated $11.6 billion.

The company was also awarded a $198 million contract to provide power amplifier module spares for the E-2D Advanced Hawkeye aircraft. The contract, issued under a previously awarded basic ordering agreement, covers the supply of 608 power amplifier module spares.

On the analyst front, Bernstein raised its price target for Northrop Grumman to $765 from $727, citing positive trends extending into 2026. The company’s board of directors declared a quarterly dividend of $2.31 per share, payable on March 11, 2026, to shareholders of record as of February 23, 2026. In addition, Admiral Christopher Grady, a retired four-star admiral, has been elected to the board of directors.

According to fair value estimates included in available market analysis, the stock currently appears overvalued. Investors seeking further detail on the company’s valuation and performance are advised to consult in-depth research reports and professional analysis covering NOC and peer equities.


Context and what happened

  • The insider sale by Simpson reduced her direct holdings to 874.39 shares and was executed under a 10b5-1 plan adopted in February 2025.
  • Northrop Grumman reported Q4 2025 EPS of $7.23 on revenue of $11.7 billion, both modestly above consensus estimates.
  • The company secured a $198 million order for 608 power amplifier module spares for the E-2D Advanced Hawkeye, and its board approved a $2.31 quarterly dividend while adding Admiral Christopher Grady to the board.

Market signals and analyst movement

Bernstein has adjusted its price target upward to $765 from $727, citing sustained positive trends into 2026. At the same time, published fair value calculations indicate the shares may be trading above their intrinsic estimate.

Risks

  • Valuation risk - published fair value estimates indicate the stock currently appears overvalued, which may affect investor interest in the defense sector and related equities.
  • Investor sentiment risk - insider selling, even under a pre-arranged 10b5-1 plan, can spur questions among shareholders and influence short-term market perception of the company's shares in the aerospace and defense market.
  • Analyst and forecast uncertainty - Bernstein raised its price target citing positive trends, but future performance remains uncertain and continued results will influence defense contractor valuations.

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