Northrop Grumman (NYSE:NOC) Upgraded at Robert W. Baird

Key Points

• Robert W. Baird upgraded Northrop Grumman from “hold” to “strong buy.” Overall analyst sentiment is “Moderate Buy,” with a consensus price target of $641.35.
• Northrop Grumman reported quarterly earnings of $7.89 per share, beating the $7.18 consensus estimate, while revenue increased 6.7% year over year to $11.12 billion.
• Strong backlog and improved guidance support the long-term outlook. Backlog reached roughly $110 billion, and management raised its full-year EPS outlook to $29.35–$29.75 while maintaining revenue guidance of $43.8–$44.3 billion.

Northrop Grumman (NYSE:NOC - Get Free Report) was upgraded by investment analysts at Robert W. Baird from a "hold" rating to a "strong-buy" rating in a report released on Wednesday, Zacks reports.

A number of other brokerages have also recently issued reports on NOC. Weiss Ratings raised shares of Northrop Grumman from a "hold (c)" rating to a "hold (c+)" rating in a research note on Thursday, October 8th. Royal Bank Of Canada lifted their target price on shares of Northrop Grumman from $525.00 to $550.00 and gave the company a "sector perform" rating in a research note on Wednesday. Barclays reaffirmed an "underweight" rating on shares of Northrop Grumman in a report on Thursday. Morgan Stanley increased their price target on Northrop Grumman from $745.00 to $765.00 and gave the stock an "overweight" rating in a research note on Wednesday. Finally, Wells Fargo & Company reiterated an "overweight" rating and issued a $620.00 price target (down from $800.00) on shares of Northrop Grumman in a research note on Wednesday, July 8th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average price target of $641.35.

Northrop Grumman Trading Up 1.0%

Northrop Grumman stock opened at $539.46 on Wednesday. Northrop Grumman has a 12-month low of $470.06 and a 12-month high of $774.00. The firm has a market capitalization of $76.62 billion, a price-to-earnings ratio of 17.02, a P/E/G ratio of 3.05 and a beta of -0.11. The firm has a 50 day moving average of $522.28 and a 200 day moving average of $548.98. The company has a current ratio of 1.23, a quick ratio of 1.06 and a debt-to-equity ratio of 0.77.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its quarterly earnings results on Tuesday, October 20th. The aerospace company reported $7.89 earnings per share for the quarter, beating the consensus estimate of $7.18 by $0.71. Northrop Grumman had a net margin of 10.37% and a return on equity of 23.46%. The business had revenue of $11.12 billion for the quarter, compared to the consensus estimate of $11.14 billion. During the same quarter in the previous year, the firm earned $7.67 earnings per share. The company's revenue for the quarter was up 6.7% on a year-over-year basis. As a group, research analysts predict that Northrop Grumman will post 29.55 earnings per share for the current year.

Insider Activity at Northrop Grumman

In other news, Director Mark Welsh, III sold 95 shares of Northrop Grumman 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 transaction, the director owned 4,393 shares in the company, valued at approximately $2,405,299.29. The trade was a 2.12% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.21% of the company's stock.

Institutional Trading of Northrop Grumman

Several hedge funds and other institutional investors have recently bought and sold shares of the stock. SeaCrest Wealth Management LLC boosted its stake in Northrop Grumman by 10.0% during the third quarter. SeaCrest Wealth Management LLC now owns 527 shares of the aerospace company's stock worth $255,000 after buying an additional 48 shares during the period. Root Financial Partners LLC raised its stake in shares of Northrop Grumman by 60.9% in the third quarter. Root Financial Partners LLC now owns 904 shares of the aerospace company's stock valued at $437,000 after acquiring an additional 342 shares during the period. SBI Securities Co. Ltd. raised its stake in shares of Northrop Grumman by 16.2% in the third quarter. SBI Securities Co. Ltd. now owns 717 shares of the aerospace company's stock valued at $347,000 after acquiring an additional 100 shares during the period. Marion Wealth Management raised its stake in shares of Northrop Grumman by 4.0% in the third quarter. Marion Wealth Management now owns 3,043 shares of the aerospace company's stock valued at $1,471,000 after acquiring an additional 117 shares during the period. Finally, Flavin Financial Services Inc. lifted its holdings in shares of Northrop Grumman by 9.9% in the 3rd quarter. Flavin Financial Services Inc. now owns 2,911 shares of the aerospace company's stock worth $1,407,000 after acquiring an additional 263 shares during the last quarter. Hedge funds and other institutional investors own 83.40% of the company's stock.

Key Stories Impacting Northrop Grumman

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

• Positive Sentiment: Q3 earnings beat expectations. Northrop reported adjusted earnings of $7.89 per share, ahead of the approximately $7.18 consensus, while revenue rose 6.7% year over year to $11.12 billion and broadly matched estimates. Northrop Grumman Shares Up on Earnings Beat
• Positive Sentiment: Management raised its FY 2026 earnings outlook. The company now expects EPS of $29.35-$29.75, above the consensus estimate of $28.97. Revenue guidance of $43.8 billion-$44.3 billion was maintained around analysts’ expectations. Northrop Grumman Q3 Earnings Surpass Estimates
• Positive Sentiment: Record backlog supports longer-term visibility. Backlog reached approximately $109.6 billion-$110 billion, up about 20% year over year, with a 1.5x book-to-bill ratio. Management also projected 5%-7% sales growth in 2027, supported by B-21 bomber investment and demand across defense and space programs. Northrop Grumman Earnings Call Highlights
• Positive Sentiment: Analyst sentiment improved. BNP Paribas Exane raised its price target to $600 and rated the stock “outperform,” while Baird increased its target to $675 and upgraded the shares. Bank of America maintained a Buy rating with a $750 target. Northrop Grumman Analysts Boost Their Forecasts
• Neutral Sentiment: Investors are weighing the growth outlook against higher capital spending, potential margin pressure and paused share buybacks. The company’s sizable government exposure also leaves it sensitive to defense-budget priorities and political developments.

Northrop Grumman Company Profile

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. government representing its primary customer base. The company operates across aerospace, defense, space, cybersecurity and advanced technology markets.

Its products and services include military aircraft and autonomous systems, space systems and satellites, missile defense technologies, command-and-control systems, cyber solutions, sensors, communications networks and other mission-critical systems.

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