StockNews.com Downgrades Northrop Grumman (NYSE:NOC) to Buy

Northrop Grumman (NYSE:NOC) was downgraded by stock analysts at StockNews.com from a “strong-buy” rating to a “buy” rating in a report released on Monday.

NOC has been the topic of a number of other research reports. Wells Fargo & Company lowered their price target on Northrop Grumman from $595.00 to $574.00 and set an “overweight” rating on the stock in a research report on Friday, January 31st. Susquehanna decreased their target price on Northrop Grumman from $625.00 to $557.00 and set a “positive” rating on the stock in a research report on Wednesday, January 8th. JPMorgan Chase & Co. boosted their price target on shares of Northrop Grumman from $500.00 to $560.00 and gave the stock a “neutral” rating in a report on Monday, October 14th. Royal Bank of Canada upped their price objective on shares of Northrop Grumman from $500.00 to $540.00 and gave the stock a “sector perform” rating in a research report on Friday, October 25th. Finally, Truist Financial assumed coverage on shares of Northrop Grumman in a research report on Tuesday, January 14th. They issued a “buy” rating and a $544.00 target price on the stock. Nine research analysts have rated the stock with a hold rating and nine have given a buy rating to the stock. According to MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $544.31.

Northrop Grumman Price Performance

NYSE:NOC opened at $482.79 on Monday. The company has a 50 day moving average price of $478.26 and a 200-day moving average price of $499.10. Northrop Grumman has a 1-year low of $418.60 and a 1-year high of $555.57. The firm has a market cap of $69.89 billion, a price-to-earnings ratio of 17.04, a price-to-earnings-growth ratio of 0.91 and a beta of 0.35. The company has a debt-to-equity ratio of 0.96, a current ratio of 1.01 and a quick ratio of 0.91.

Northrop Grumman (NYSE:NOC) last released its quarterly earnings data on Thursday, January 30th. The aerospace company reported $6.39 earnings per share for the quarter, beating analysts’ consensus estimates of $6.27 by $0.12. Northrop Grumman had a net margin of 10.17% and a return on equity of 26.24%. Equities research analysts forecast that Northrop Grumman will post 28.04 EPS for the current year.

Northrop Grumman declared that its board has approved a stock repurchase program on Wednesday, December 11th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the aerospace company to buy up to 4.3% of its stock through open market purchases. Stock buyback programs are often an indication that the company’s leadership believes its shares are undervalued.

Insider Activity

In related news, VP Benjamin R. Davies sold 1,156 shares of the company’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $532.93, for a total value of $616,067.08. Following the transaction, the vice president now directly owns 537 shares in the company, valued at approximately $286,183.41. This represents a 68.28 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. In the last quarter, insiders have sold 1,222 shares of company stock valued at $647,025. 0.22% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Northrop Grumman

A number of hedge funds have recently modified their holdings of NOC. Lake Street Advisors Group LLC lifted its position in Northrop Grumman by 3.5% in the fourth quarter. Lake Street Advisors Group LLC now owns 1,574 shares of the aerospace company’s stock valued at $739,000 after buying an additional 53 shares during the last quarter. Kirtland Hills Capital Management LLC lifted its holdings in shares of Northrop Grumman by 12.5% in the 4th quarter. Kirtland Hills Capital Management LLC now owns 1,516 shares of the aerospace company’s stock worth $712,000 after acquiring an additional 168 shares during the last quarter. Illinois Municipal Retirement Fund boosted its position in shares of Northrop Grumman by 76.8% during the 4th quarter. Illinois Municipal Retirement Fund now owns 5,898 shares of the aerospace company’s stock worth $2,768,000 after purchasing an additional 2,562 shares during the period. Los Angeles Capital Management LLC increased its holdings in Northrop Grumman by 9.5% in the 4th quarter. Los Angeles Capital Management LLC now owns 59,376 shares of the aerospace company’s stock valued at $27,865,000 after purchasing an additional 5,162 shares during the last quarter. Finally, FourThought Financial Partners LLC raised its position in Northrop Grumman by 21.4% in the fourth quarter. FourThought Financial Partners LLC now owns 22,749 shares of the aerospace company’s stock valued at $10,676,000 after purchasing an additional 4,017 shares during the period. 83.40% of the stock is currently owned by hedge funds and other institutional investors.

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.