Northrop Grumman (NYSE:NOC) Stock Price Down 4.9% - Here's What Happened

Key Points

• Shares fell ~4.9% midday to about $625, with only 165,196 shares trading—roughly 82% below the average session volume.
• Q1 beat expectations (EPS $6.14 vs. $6.03; revenue $9.88B vs. $9.75B) and management is expanding B‑21 production and accelerating Sentinel IOC while reaffirming FY2026 guidance.
• Near‑term concerns include operating cash flow of ~$1.66B and free cash flow of ~$1.82B as uses in Q1, a $71M Space Systems charge, and recent insider/institutional selling that may pressure the stock.

Northrop Grumman Corporation (NYSE:NOC - Get Free Report)'s stock price traded down 4.9% during mid-day trading on Tuesday . The company traded as low as $629.00 and last traded at $625.0230. 165,196 shares changed hands during mid-day trading, a decline of 82% from the average session volume of 919,434 shares. The stock had previously closed at $656.98.

Key Headlines Impacting Northrop Grumman

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

• Positive Sentiment: Q1 beat on revenue and EPS — Northrop exceeded consensus on both sales and earnings, supported by aeronautics strength and margin recovery, which supports the company’s medium/long‑term earnings power. Reuters: Northrop Grumman posts higher revenue
• Positive Sentiment: B‑21 / production investments — Management highlighted steps to expand B‑21 production capacity and accelerate Sentinel IOC, signaling higher future revenue potential from prioritized, large‑scale programs. Yahoo: Northrop Grumman B-21 Progress
• Neutral Sentiment: FY 2026 guidance reaffirmed — Management reiterated full‑year targets (EPS and free cash flow) rather than raising them; that reduces upside surprise potential even though guidance remains broadly in line with expectations. Barron's: Stealth Bomber Maker Delivers Strong Earnings
• Negative Sentiment: Quarterly cash burn — Operating cash flow was a use (~$1.66B) and free cash flow was a use (~$1.82B) for Q1, raising near‑term liquidity and working‑capital concerns and pressuring the stock multiple. Quiver Quantitative: Northrop Grumman falls as investors focus on Q1 cash burn
• Negative Sentiment: Space Systems charge / program adjustment — A $71M unfavorable EAC adjustment tied to a GEM‑63XL launch anomaly and lower Space Systems margins weighed on segment profitability and raised execution risk in that portfolio. Quiver Quantitative: Space Systems charge analysis
• Negative Sentiment: Insider and institutional selling — Recent disclosures show multiple insider sales and large institutional position reductions at quarter end, which can sap market confidence in the near term. Quiver Quantitative: Insider & institutional activity

Wall Street Analyst Weigh In

NOC has been the subject of a number of recent research reports. Royal Bank Of Canada lifted their price target on shares of Northrop Grumman from $715.00 to $750.00 and gave the stock an "outperform" rating in a research note on Wednesday, January 28th. Susquehanna reiterated a "positive" rating and issued a $752.00 price target on shares of Northrop Grumman in a research note on Thursday, January 15th. Sanford C. Bernstein reiterated a "market perform" rating and issued a $727.00 price target on shares of Northrop Grumman in a research note on Monday, January 12th. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and issued a $765.00 price target on shares of Northrop Grumman in a research note on Thursday, January 29th. Finally, BTIG Research boosted their price objective on shares of Northrop Grumman from $680.00 to $815.00 and gave the stock a "buy" rating in a research report on Wednesday, January 28th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have given a Hold rating to the company's stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $719.58.

Northrop Grumman Stock Performance

The firm's 50-day moving average is $707.36 and its 200 day moving average is $639.25. The stock has a market cap of $87.59 billion, a PE ratio of 21.20, a P/E/G ratio of 4.71 and a beta of 0.04. The company has a debt-to-equity ratio of 0.91, a quick ratio of 1.01 and a current ratio of 1.10.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings results on Tuesday, April 21st. The aerospace company reported $6.14 EPS for the quarter, beating the consensus estimate of $6.03 by $0.11. Northrop Grumman had a net margin of 9.97% and a return on equity of 25.57%. 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 earned $6.06 EPS. Northrop Grumman's revenue for the quarter was up 4.4% on a year-over-year basis. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. As a group, research analysts anticipate that Northrop Grumman Corporation will post 28.11 EPS for the current year.

Northrop Grumman Announces Dividend

The business also recently disclosed a quarterly dividend, which was paid on Wednesday, March 11th. Shareholders of record on Monday, February 23rd were paid a dividend of $2.31 per share. The ex-dividend date of this dividend was Monday, February 23rd. This represents a $9.24 annualized dividend and a yield of 1.5%. Northrop Grumman's dividend payout ratio is currently 31.72%.

Insider Buying and Selling

In other Northrop Grumman news, CEO Kathy J. Warden sold 20,000 shares of the company's stock in a transaction that occurred on Friday, February 6th. The stock was sold at an average price of $708.82, for a total transaction of $14,176,400.00. Following the completion of the sale, the chief executive officer directly owned 171,602 shares of the company's stock, valued at $121,634,929.64. This represents a 10.44% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Also, Director Mark A. Welsh III sold 95 shares of the company's stock in a transaction that occurred on Monday, February 2nd. The shares were sold at an average price of $684.52, for a total value of $65,029.40. Following the sale, the director directly owned 4,203 shares of the company's stock, valued at approximately $2,877,037.56. This represents a 2.21% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 22,431 shares of company stock valued at $15,924,404 in the last quarter. 0.21% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Northrop Grumman

Large investors have recently bought and sold shares of the company. Financial Life Planners purchased a new position in Northrop Grumman during the 3rd quarter worth $27,000. Torren Management LLC purchased a new position in Northrop Grumman during the 4th quarter worth $26,000. Karpus Management Inc. purchased a new position in shares of Northrop Grumman during the 4th quarter worth approximately $26,000. Physician Wealth Advisors Inc. raised its stake in shares of Northrop Grumman by 200.0% during the 3rd quarter. Physician Wealth Advisors Inc. now owns 48 shares of the aerospace company's stock worth $29,000 after buying an additional 32 shares in the last quarter. Finally, Hopwood Financial Services Inc. purchased a new position in shares of Northrop Grumman during the 3rd quarter worth approximately $30,000. Hedge funds and other institutional investors own 83.40% of the company's stock.

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.

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