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Northrop Grumman (NYSE:NOC) +1.3% post-market Monday after saying it entered into an accelerated share repurchase agreement with Morgan Stanley to buy back $1B of common stock.
Northrop (NOC) said it expects to receive ~1.8M shares on January 31, which represents ~80% of the buybacks under the repurchase deal based on today’s closing price of $438.31.
The ASR will be completed under the company’s current share repurchase authorization, which has ~$3.6B remaining.
Northrop (NOC), which expects the buybacks to be completed no later than Q2, said it continues to target returning “well over 100%” of its free cash flow to shareholders through dividends and buybacks this year.