Northrop Grumman (NYSE:NOC) Stock Lifted to "Strong Sell" by Barclays

Key Points

• Barclays downgraded Northrop Grumman to “Strong Sell,” adding to mixed analyst sentiment. Despite the downgrade, the broader analyst consensus remains “Moderate Buy,” with an average price target of $644.70.
• Northrop Grumman shares opened at $480.95, near their 52-week low of $470.06 and well below the 52-week high of $774.00. Several brokerages have recently reduced their price targets, signaling weaker near-term expectations.
• The company’s latest quarterly results exceeded estimates, with EPS of $7.68 versus the $6.82 consensus and revenue of $10.88 billion. Management’s FY 2026 EPS guidance is $28.60–$29.10, while institutional investors own 83.40% of the stock.

Northrop Grumman (NYSE:NOC - Get Free Report) was upgraded by Barclays to a "strong sell" rating in a report released on Friday, Zacks reports.

A number of other brokerages have also weighed in on NOC. Sanford C. Bernstein decreased their target price on Northrop Grumman from $653.00 to $620.00 and set a "market perform" rating on the stock in a research note on Wednesday, September 23rd. Wells Fargo & Company reissued an "overweight" rating and set a $620.00 price objective (down from $800.00) on shares of Northrop Grumman in a report on Wednesday, July 8th. JPMorgan Chase & Co. decreased their price objective on shares of Northrop Grumman from $635.00 to $600.00 and set a "neutral" rating on the stock in a research report on Thursday, July 23rd. BNP Paribas Exane lowered their target price on shares of Northrop Grumman from $640.00 to $540.00 and set an "outperform" rating on the stock in a research note on Tuesday. Finally, Susquehanna dropped their target price on shares of Northrop Grumman from $785.00 to $655.00 and set a "positive" rating for the company in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock has an average rating of "Moderate Buy" and a consensus price target of $644.70.

Northrop Grumman Stock Performance

NYSE NOC opened at $480.95 on Friday. The company's 50 day simple moving average is $531.46 and its two-hundred day simple moving average is $559.90. The company has a debt-to-equity ratio of 0.81, a current ratio of 1.17 and a quick ratio of 1.06. Northrop Grumman has a 1 year low of $470.06 and a 1 year high of $774.00. The stock has a market capitalization of $68.31 billion, a PE ratio of 15.28, a P/E/G ratio of 2.84 and a beta of -0.11.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings results on Tuesday, July 21st. The aerospace company reported $7.68 EPS for the quarter, beating analysts' consensus estimates of $6.82 by $0.86. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The firm had revenue of $10.88 billion during the quarter, compared to analyst estimates of $10.80 billion. During the same period in the previous year, the business earned $8.15 EPS. The business's revenue for the quarter was up 5.1% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Analysts predict that Northrop Grumman will post 28.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other Northrop Grumman news, Director Mark Welsh, III sold 95 shares of the company's stock in a transaction that occurred on Monday, August 3rd. The stock was sold at an average price of $547.53, for a total value of $52,015.35. Following the completion of the sale, the director owned 4,393 shares of the company's stock, valued at $2,405,299.29. This represents a 2.12% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is owned by insiders.

Institutional Investors Weigh In On Northrop Grumman

Hedge funds have recently made changes to their positions in the business. Perkins Coie Trust Co purchased a new position in Northrop Grumman in the 2nd quarter worth $29,000. Financial Life Planners bought a new position in shares of Northrop Grumman during the first quarter valued at about $30,000. Navigoe LLC bought a new position in shares of Northrop Grumman during the second quarter valued at about $30,000. Plato Investment Management Ltd purchased a new position in shares of Northrop Grumman in the second quarter worth about $30,000. Finally, Elevation Wealth Partners LLC purchased a new position in shares of Northrop Grumman in the third quarter worth about $30,000. 83.40% of the stock is currently owned by institutional investors.

Northrop Grumman News Roundup

Here are the key news stories impacting Northrop Grumman this week:

• Positive Sentiment: Northrop Grumman integrated SRC’s Gryphon R1810 long-range radar into its Raid Hunter air-defense system. The upgrade is designed to improve detection and precision against multiple airborne targets, including drone swarms, potentially strengthening the company’s positioning in counter-drone and infrastructure-protection markets. Northrop Grumman Upgraded Raid Hunter With New Long Range Radar
• Positive Sentiment: Citi maintained its Buy rating on NOC, signaling that the bank continues to see value in Northrop’s defense portfolio and long-term prospects. Citi Remains a Buy on Northrop Grumman
• Positive Sentiment: Recent investment commentary highlights Northrop’s record backlog, raised guidance and dividend appeal after a significant year-to-date decline. Its latest quarterly results also exceeded earnings expectations, while full-year 2026 EPS guidance remains strong at $28.60–$29.10. As War Fades Away, It’s Time to Buy Defense Stocks
• Neutral Sentiment: Investor comparisons of Northrop Grumman and L3Harris focus on their dividends, backlogs and potential risks, but do not provide a new company-specific catalyst or material financial update. LHX vs. NOC: Which Defense Dividend Will Actually Protect Your Retirement?
• Negative Sentiment: Barclays initiated coverage with an Underweight rating, adding to concerns about valuation, execution or near-term upside. Barclays Initiates Coverage at Underweight
• Negative Sentiment: TD Cowen lowered its price target from $590 to $540 and assigned a Hold rating. Although the revised target implies potential upside from the recent trading level, the cut signals reduced expectations and may pressure the stock.

About Northrop Grumman

Northrop Grumman Corporation NYSE: NOC is a global aerospace and defense company that develops and produces systems for government and commercial customers, with the U.S. Department of Defense and other government agencies representing its primary markets. Its work spans advanced aircraft, autonomous systems, space systems, missile defense, command and control, cybersecurity, and other mission-critical technologies.

The company's offerings include strategic and tactical aircraft, unmanned aerial vehicles, aircraft systems, satellites, spacecraft, launch vehicles, missile-warning and missile-defense systems, secure communications, and cyber and information systems.

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