Citigroup Has Lowered Expectations for Northrop Grumman (NYSE:NOC) Stock Price

Key Points

• Citigroup cut its price target for Northrop Grumman from $807 to $742 while maintaining a "buy" rating, with the firm's new target implying roughly a 26.8% upside; the stock's consensus rating remains a “Moderate Buy” with an average target around $713.37.
• Northrop beat Q1 estimates (EPS $6.14 vs. $6.06; revenue $9.88B vs. $9.75B) and set FY2026 EPS guidance of $27.40–27.90, but the share price was punished after management raised 2026 capex and did not raise full‑year guidance, raising near‑term execution and cash‑flow concerns.
• The stock traded near $585.14 on the report — well below many analyst targets and the 50‑day moving average (~$704) — and has seen recent insider selling (22,431 shares, ~$15.9M in the last 90 days), while institutional holders own roughly 83.4% of the shares.

Northrop Grumman (NYSE:NOC - Get Free Report) had its target price cut by research analysts at Citigroup from $807.00 to $742.00 in a report released on Thursday,Benzinga reports. The brokerage currently has a "buy" rating on the aerospace company's stock. Citigroup's target price would suggest a potential upside of 26.81% from the stock's previous close.

A number of other equities analysts also recently weighed in on NOC. UBS Group reaffirmed a "buy" rating and set a $745.00 price target on shares of Northrop Grumman in a research report on Thursday. Morgan Stanley reduced their price target on Northrop Grumman from $765.00 to $745.00 and set an "overweight" rating for the company in a research report on Wednesday. Sanford C. Bernstein reaffirmed a "market perform" rating and set a $727.00 price target on shares of Northrop Grumman in a research report on Monday, January 12th. Truist Financial reaffirmed a "hold" rating and set a $623.00 price target (down from $688.00) on shares of Northrop Grumman in a research report on Friday, January 9th. Finally, Wells Fargo & Company assumed coverage on Northrop Grumman in a research report on Wednesday, April 1st. They set an "overweight" rating and a $800.00 price target for the company. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating and eight have issued a Hold rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $713.37.

Northrop Grumman Stock Down 0.8%

NYSE:NOC traded down $4.48 during trading hours on Thursday, reaching $585.14. 476,651 shares of the stock were exchanged, compared to its average volume of 938,396. Northrop Grumman has a twelve month low of $453.01 and a twelve month high of $774.00. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.15 and a quick ratio of 1.01. The firm has a 50 day moving average of $704.09 and a 200 day moving average of $638.91. The stock has a market cap of $83.11 billion, a PE ratio of 18.30, a PEG ratio of 4.37 and a beta of 0.04.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The aerospace company reported $6.14 earnings per share for the quarter, topping analysts' consensus estimates of $6.06 by $0.08. Northrop Grumman had a return on equity of 24.72% and a net margin of 10.80%.The firm had revenue of $9.88 billion during the quarter, compared to the consensus estimate of $9.75 billion. During the same quarter in the prior year, the firm posted $6.06 EPS. The business's revenue was up 4.4% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. On average, equities analysts expect that Northrop Grumman will post 27.83 earnings per share for the current year.

Insider Buying and Selling

In other news, CAO Michael A. Hardesty sold 147 shares of the stock in a transaction that occurred on Thursday, February 19th. The stock was sold at an average price of $732.98, for a total value of $107,748.06. Following the completion of the sale, the chief accounting officer owned 2,525 shares of the company's stock, valued at approximately $1,850,774.50. This represents a 5.50% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Benjamin R. Davies sold 2,189 shares of the stock in a transaction that occurred on Wednesday, February 18th. The shares were sold at an average price of $719.61, for a total value of $1,575,226.29. Following the completion of the sale, the vice president directly owned 151 shares of the company's stock, valued at approximately $108,661.11. The trade was a 93.55% decrease in their position. The SEC filing for this sale provides additional information. In the last 90 days, insiders sold 22,431 shares of company stock worth $15,924,404. 0.21% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Northrop Grumman

Hedge funds have recently added to or reduced their stakes in the business. Torren Management LLC acquired a new stake in Northrop Grumman during the 4th quarter valued at $26,000. Karpus Management Inc. acquired a new stake in Northrop Grumman during the 4th quarter valued at $26,000. Financial Life Planners acquired a new stake in Northrop Grumman during the 3rd quarter valued at $27,000. Physician Wealth Advisors Inc. lifted its holdings in Northrop Grumman by 200.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 48 shares of the aerospace company's stock valued at $29,000 after purchasing an additional 32 shares during the last quarter. Finally, Kohmann Bosshard Financial Services LLC acquired a new stake in Northrop Grumman during the 4th quarter valued at $29,000. Institutional investors and hedge funds own 83.40% of the company's stock.

More Northrop Grumman News

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

• Positive Sentiment: Q1 beat on sales ($9.88B) and adjusted EPS ($6.14) with strong missile and aeronautics demand and a large backlog that supports multi‑year visibility; this underpins the bullish long‑term thesis. NOC Q1 Deep Dive
• Positive Sentiment: Bullish analyst notes and buy ratings persist: BTIG reaffirmed a Buy with an $815 PT, and several analysts maintain above‑market targets, highlighting upside if margin recovery and program ramps progress. BTIG Reaffirm Buy
• Positive Sentiment: Independent bullish take arguing NOC is materially below intrinsic value after the pullback and upgraded to “Strong Buy,” emphasizing long‑term program wins (nuclear triad, B‑21, missile systems) as catalysts. Nuclear Triad Winner Strong Buy
• Neutral Sentiment: Management reaffirmed 2026 sales guidance ($43.5B–$44B) but labeled 2026 a “ramp” year; investors will watch margin recovery timing and B‑21 production cadence. Reaffirms 2026 Outlook, Lifts Capex
• Neutral Sentiment: RBC and other research pieces note NOC remains well‑positioned across strategic programs; this supports medium/long‑term demand but is less decisive for near‑term price action. RBC: Remains Well‑Positioned
• Negative Sentiment: Investors punished the stock after the quarter because Northrop did not raise full‑year guidance and increased 2026 capex (B‑21 ramp to $1.85B), raising near‑term cash and execution concerns. Shares Slip as Outlook Matches Estimates
• Negative Sentiment: Mixed analyst moves include Jefferies and Bernstein issuing Holds and Morgan Stanley cutting its price target (from $765 to $745) despite an Overweight rating — signaling some caution on near‑term upside. Jefferies Hold Bernstein Hold Morgan Stanley PT Cut

Northrop Grumman Company Profile

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.

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