Northrop Grumman Co. (NYSE:NOC) Receives Average Recommendation of “Moderate Buy” from Brokerages

Shares of Northrop Grumman Co. (NYSE:NOC) have been given an average rating of “Moderate Buy” by the eighteen brokerages that are covering the stock, MarketBeat Ratings reports. Nine investment analysts have rated the stock with a hold recommendation, eight have assigned a buy recommendation and one has assigned a strong buy recommendation to the company. The average 1-year price objective among brokers that have covered the stock in the last year is $542.88.

Several brokerages have recently weighed in on NOC. Wolfe Research raised shares of Northrop Grumman from an “underperform” rating to a “peer perform” rating in a report on Monday, February 3rd. StockNews.com cut Northrop Grumman from a “strong-buy” rating to a “buy” rating in a research report on Monday, February 3rd. Argus raised Northrop Grumman to a “strong-buy” rating in a report on Wednesday, February 26th. Wells Fargo & Company upped their price objective on Northrop Grumman from $545.00 to $547.00 and gave the stock an “overweight” rating in a report on Friday, March 7th. Finally, Susquehanna reduced their target price on Northrop Grumman from $625.00 to $557.00 and set a “positive” rating for the company in a report on Wednesday, January 8th.

Insider Buying and Selling at Northrop Grumman

In other Northrop Grumman news, CEO Kathy J. Warden sold 3,750 shares of the stock in a transaction on Thursday, March 6th. The stock was sold at an average price of $475.65, for a total transaction of $1,783,687.50. Following the transaction, the chief executive officer now owns 212,852 shares of the company’s stock, valued at $101,243,053.80. This represents a 1.73 % decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this link. Also, VP Benjamin R. Davies sold 192 shares of the firm’s stock in a transaction on Thursday, February 20th. The stock was sold at an average price of $429.08, for a total value of $82,383.36. Following the sale, the vice president now owns 709 shares in the company, valued at $304,217.72. This trade represents a 21.31 % decrease in their position. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 4,505 shares of company stock worth $2,126,405. 0.22% of the stock is owned by insiders.

Hedge Funds Weigh In On Northrop Grumman

Large investors have recently added to or reduced their stakes in the business. Capital International Investors grew its stake in shares of Northrop Grumman by 5.9% during the 4th quarter. Capital International Investors now owns 8,239,434 shares of the aerospace company’s stock valued at $3,866,133,000 after buying an additional 461,307 shares during the period. Price T Rowe Associates Inc. MD increased its stake in Northrop Grumman by 28.5% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 2,030,644 shares of the aerospace company’s stock worth $952,962,000 after acquiring an additional 450,858 shares during the last quarter. Two Sigma Advisers LP increased its stake in Northrop Grumman by 102.6% during the third quarter. Two Sigma Advisers LP now owns 735,600 shares of the aerospace company’s stock worth $388,448,000 after acquiring an additional 372,500 shares during the last quarter. First Trust Advisors LP raised its holdings in shares of Northrop Grumman by 337.1% in the 4th quarter. First Trust Advisors LP now owns 482,112 shares of the aerospace company’s stock worth $226,250,000 after purchasing an additional 371,814 shares during the period. Finally, Raymond James Financial Inc. acquired a new position in shares of Northrop Grumman in the 4th quarter valued at about $171,580,000. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

Northrop Grumman Price Performance

Shares of NYSE:NOC opened at $506.88 on Friday. Northrop Grumman has a one year low of $418.60 and a one year high of $555.57. The stock has a market capitalization of $73.37 billion, a price-to-earnings ratio of 17.89, a PEG ratio of 3.73 and a beta of 0.31. The company has a 50-day simple moving average of $476.25 and a 200-day simple moving average of $492.88. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.91 and a current ratio of 1.01.

Northrop Grumman (NYSE:NOC) last posted its quarterly earnings data on Thursday, January 30th. The aerospace company reported $6.39 earnings per share for the quarter, topping analysts’ consensus estimates of $6.27 by $0.12. Northrop Grumman had a return on equity of 26.24% and a net margin of 10.17%. On average, analysts predict that Northrop Grumman will post 28.05 EPS for the current year.

Northrop Grumman Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Wednesday, March 19th. Stockholders of record on Monday, March 3rd were given a $2.06 dividend. The ex-dividend date of this dividend was Monday, March 3rd. This represents a $8.24 annualized dividend and a dividend yield of 1.63%. Northrop Grumman’s dividend payout ratio is presently 29.08%.

Northrop Grumman announced that its board has initiated a share repurchase plan on Wednesday, December 11th that authorizes the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization authorizes the aerospace company to reacquire up to 4.3% of its shares through open market purchases. Shares repurchase plans are often an indication that the company’s board believes its shares are undervalued.

Northrop Grumman Company Profile

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.