Northrop Grumman (NYSE:NOC) Sets New 1-Year High – Should You Buy?

Northrop Grumman Corporation (NYSE:NOC)’s share price reached a new 52-week high on Monday . The stock traded as high as $716.82 and last traded at $712.5750, with a volume of 1606 shares trading hands. The stock had previously closed at $709.11.

Analyst Upgrades and Downgrades

Several analysts recently issued reports on NOC shares. Alembic Global Advisors upgraded Northrop Grumman from a “neutral” rating to an “overweight” rating and set a $662.00 price objective for the company in a report on Monday, December 15th. BNP Paribas Exane initiated coverage on Northrop Grumman in a research note on Tuesday, November 18th. They set an “outperform” rating and a $710.00 price target for the company. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $765.00 price target on shares of Northrop Grumman in a report on Thursday, January 29th. UBS Group increased their price objective on Northrop Grumman from $777.00 to $778.00 and gave the stock a “buy” rating in a report on Wednesday, January 28th. Finally, Royal Bank Of Canada raised their price objective on shares of Northrop Grumman from $715.00 to $750.00 and gave the company an “outperform” rating in a research report on Wednesday, January 28th. Two analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating and nine have issued a Hold rating to the company. According to MarketBeat, Northrop Grumman presently has an average rating of “Moderate Buy” and a consensus target price of $688.79.

Northrop Grumman Price Performance

The company has a current ratio of 1.10, a quick ratio of 1.01 and a debt-to-equity ratio of 0.91. The stock has a fifty day simple moving average of $612.48 and a 200-day simple moving average of $595.00. The stock has a market cap of $100.87 billion, a price-to-earnings ratio of 24.43, a price-to-earnings-growth ratio of 5.27 and a beta of 0.04.

Northrop Grumman (NYSE:NOC) last released its earnings results on Tuesday, January 27th. The aerospace company reported $7.23 earnings per share for the quarter, beating the consensus estimate of $6.97 by $0.26. Northrop Grumman had a net margin of 9.97% and a return on equity of 25.57%. The business had revenue of $11.71 billion during the quarter, compared to analysts’ expectations of $11.61 billion. During the same quarter last year, the company earned $6.39 earnings per share. The firm’s revenue was up 9.6% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. As a group, equities research analysts expect that Northrop Grumman Corporation will post 28.05 EPS for the current year.

Northrop Grumman Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, December 17th. Shareholders of record on Monday, December 1st were issued a dividend of $2.31 per share. The ex-dividend date of this dividend was Monday, December 1st. This represents a $9.24 dividend on an annualized basis and a dividend yield of 1.3%. Northrop Grumman’s dividend payout ratio (DPR) is presently 31.72%.

Insider Activity

In other news, Director Mark A. Welsh III sold 97 shares of the firm’s stock in a transaction on Monday, November 24th. The stock was sold at an average price of $564.08, for a total value of $54,715.76. Following the completion of the sale, the director directly owned 4,281 shares in the company, valued at approximately $2,414,826.48. This trade represents a 2.22% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CEO Kathy J. Warden sold 7,000 shares of the firm’s stock in a transaction dated Monday, January 5th. The shares were sold at an average price of $600.00, for a total transaction of $4,200,000.00. Following the completion of the sale, the chief executive officer owned 194,602 shares of the company’s stock, valued at $116,761,200. The trade was a 3.47% decrease in their position. The SEC filing for this sale provides additional information. Insiders have sold a total of 10,192 shares of company stock valued at $6,164,745 over the last three months. 0.23% of the stock is currently owned by insiders.

Institutional Trading of Northrop Grumman

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in NOC. Brighton Jones LLC lifted its holdings in Northrop Grumman by 176.3% in the fourth quarter. Brighton Jones LLC now owns 2,970 shares of the aerospace company’s stock valued at $1,394,000 after buying an additional 1,895 shares during the period. Bison Wealth LLC raised its position in shares of Northrop Grumman by 5.3% during the 4th quarter. Bison Wealth LLC now owns 641 shares of the aerospace company’s stock valued at $301,000 after acquiring an additional 32 shares during the last quarter. Woodline Partners LP lifted its stake in shares of Northrop Grumman by 367.7% in the 1st quarter. Woodline Partners LP now owns 2,516 shares of the aerospace company’s stock valued at $1,288,000 after purchasing an additional 1,978 shares during the period. Vontobel Holding Ltd. lifted its stake in shares of Northrop Grumman by 45.9% in the 2nd quarter. Vontobel Holding Ltd. now owns 2,445 shares of the aerospace company’s stock valued at $1,222,000 after purchasing an additional 769 shares during the period. Finally, Callan Family Office LLC boosted its position in shares of Northrop Grumman by 119.6% in the 2nd quarter. Callan Family Office LLC now owns 2,576 shares of the aerospace company’s stock worth $1,288,000 after purchasing an additional 1,403 shares during the last quarter. 83.40% of the stock is currently owned by institutional investors and hedge funds.

About Northrop Grumman

Northrop Grumman Corporation (NYSE: NOC) is a leading U.S.-based aerospace and defense company that designs, builds and sustains advanced systems, products and technologies for government and commercial customers. Formed through the combination of Northrop and Grumman businesses in the 1990s, the company’s portfolio spans manned and unmanned aircraft, space systems, missile defense, radar and sensor systems, and integrated command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions.

The company’s work includes airframe and platform manufacturing, space hardware and satellite systems, advanced mission systems and cybersecurity services, as well as logistics, sustainment and modernization programs.