Northrop Grumman Corporation (NYSE:NOC) Receives Average Recommendation of "Moderate Buy" from Brokerages

Key Points

• Wall Street sentiment is positive: Northrop Grumman has an average analyst rating of “Moderate Buy” from 21 brokerages, with a consensus 12-month price target of about $688.89.
• Recent results topped expectations: The company reported quarterly EPS of $6.14, beating estimates, and revenue of $9.88 billion, also above forecasts. Management also issued FY 2026 EPS guidance of 27.4 to 27.9.
• The company raised its dividend: Northrop Grumman paid a quarterly dividend of $2.47, up from $2.31 previously, putting the annualized payout at $9.88 per share for a yield of about 1.8%.

Shares of Northrop Grumman Corporation (NYSE:NOC - Get Free Report) have been given an average recommendation of "Moderate Buy" by the twenty-one brokerages that are covering the firm, Marketbeat Ratings reports. Nine research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and one has given a strong buy rating to the company. The average 12-month price objective among analysts that have issued a report on the stock in the last year is $688.8947.

A number of research firms recently issued reports on NOC. Raymond James Financial restated an "outperform" rating on shares of Northrop Grumman in a report on Monday, June 15th. Wells Fargo & Company reiterated an "overweight" rating and set a $620.00 target price on shares of Northrop Grumman in a research report on Wednesday. UBS Group lowered their target price on shares of Northrop Grumman from $806.00 to $745.00 and set a "buy" rating for the company in a research note on Thursday, April 23rd. Morgan Stanley cut their price target on shares of Northrop Grumman from $765.00 to $745.00 and set an "overweight" rating on the stock in a report on Wednesday, April 22nd. Finally, Wall Street Zen downgraded shares of Northrop Grumman from a "strong-buy" rating to a "hold" rating in a research note on Saturday, April 25th.

Northrop Grumman Stock Performance

Northrop Grumman stock opened at $544.02 on Thursday. The company has a debt-to-equity ratio of 0.84, a current ratio of 1.15 and a quick ratio of 1.04. Northrop Grumman has a 1-year low of $493.84 and a 1-year high of $774.00. The firm has a market capitalization of $77.27 billion, a P/E ratio of 17.03, a price-to-earnings-growth ratio of 3.74 and a beta of -0.10. The company's 50-day moving average is $542.88 and its 200 day moving average is $626.56.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its earnings results on Tuesday, April 21st. The aerospace company reported $6.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.06 by $0.08. Northrop Grumman had a return on equity of 24.72% and a net margin of 10.80%.The business had revenue of $9.88 billion during the quarter, compared to analyst estimates of $9.75 billion. During the same quarter in the previous year, the business earned $6.06 earnings per share. The company's revenue for the quarter was up 4.4% compared to the same quarter last year. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. Research analysts forecast that Northrop Grumman will post 27.95 EPS for the current year.

Northrop Grumman Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, June 17th. Shareholders of record on Monday, June 1st were paid a $2.47 dividend. The ex-dividend date was Monday, June 1st. This represents a $9.88 dividend on an annualized basis and a yield of 1.8%. This is an increase from Northrop Grumman's previous quarterly dividend of $2.31. Northrop Grumman's payout ratio is currently 30.92%.

Key Stories Impacting Northrop Grumman

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

• Positive Sentiment: NATO allies plan to acquire up to five Northrop Grumman MQ-4C Triton drones, with Norway, Finland, Germany and Denmark among the participating countries, highlighting new international demand for the company’s surveillance systems. Northrop Grumman (NOC) Wins NATO Backing For Up To Five Triton Drones
• Positive Sentiment: Northrop Grumman was also named as a top pick in billionaire Jeffrey Talpins’ filings, adding investor attention and signaling confidence in the defense contractor’s long-term prospects. Northrop Grumman Corporation (NOC) Is A Top Pick In Billionaire Talpins’ Filings
• Neutral Sentiment: Recent commentary says Northrop Grumman looks fairly priced after its strong multi-year run, suggesting the stock may have less obvious upside from valuation alone even as defense demand remains supportive. Northrop Grumman (NOC) Stock Looks Fairly Priced Following A 62% Run
• Neutral Sentiment: Analyst updates have also pointed to cost and capital spending pressures, which may keep some investors cautious despite the company’s strong defense backlog and contract opportunities. Northrop Grumman (NOC) After Talpins Interest And Cost Concerns, Bargain Or Fairly Valued?
• Negative Sentiment: Some recent coverage suggests Northrop Grumman’s valuation is no longer deeply discounted, which could limit near-term upside if investors focus more on execution and margin pressures than on new contract wins. Northrop Grumman: Trump's Betting On A More Dangerous World

Institutional Trading of Northrop Grumman

Large investors have recently modified their holdings of the company. Capital World Investors increased its holdings in shares of Northrop Grumman by 39.4% in the 4th quarter. Capital World Investors now owns 3,434,041 shares of the aerospace company's stock valued at $1,958,151,000 after acquiring an additional 970,029 shares during the period. J. Stern & Co. LLP grew its stake in Northrop Grumman by 56,920.9% in the fourth quarter. J. Stern & Co. LLP now owns 421,955 shares of the aerospace company's stock valued at $240,603,000 after purchasing an additional 421,215 shares during the last quarter. Jennison Associates LLC raised its holdings in Northrop Grumman by 272.8% in the fourth quarter. Jennison Associates LLC now owns 401,664 shares of the aerospace company's stock worth $229,033,000 after purchasing an additional 293,909 shares in the last quarter. Holocene Advisors LP purchased a new stake in Northrop Grumman during the third quarter valued at approximately $137,280,000. Finally, Vanguard Group Inc. boosted its stake in Northrop Grumman by 1.5% in the fourth quarter. Vanguard Group Inc. now owns 13,740,721 shares of the aerospace company's stock valued at $7,835,097,000 after acquiring an additional 209,135 shares in the last quarter. Hedge funds and other institutional investors own 83.40% of the company's stock.

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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