Northrop Grumman's (NOC) Buy Rating Reaffirmed at BTIG Research

Key Points

• BTIG Research reaffirmed a Buy rating on Northrop Grumman with an $815 price target (roughly 33% upside), while the analyst consensus rates the stock a "Moderate Buy" with an average target near $719.58.
• Northrop Grumman beat Q1 estimates (EPS $6.14 vs. $6.06; revenue $9.88B) and cited strong aeronautics demand and backlog, but management reiterated FY2026 guidance that came in slightly below street expectations.
• The quarter showed heavier-than-expected operating and free-cash-flow use (~$1.6B and ~$1.8B) and management raised FY2026 capex to about $1.85B for the B‑21 ramp, creating near-term cash/execution concerns; insiders have sold shares recently while institutional ownership remains high (~83%).

Northrop Grumman (NYSE:NOC - Get Free Report)'s stock had its "buy" rating restated by analysts at BTIG Research in a research report issued to clients and investors on Wednesday,Benzinga reports. They presently have a $815.00 target price on the aerospace company's stock. BTIG Research's price target indicates a potential upside of 33.30% from the stock's previous close.

A number of other analysts have also weighed in on NOC. Deutsche Bank Aktiengesellschaft reiterated a "buy" rating and set a $765.00 target price on shares of Northrop Grumman in a report on Thursday, January 29th. Susquehanna reiterated a "positive" rating and set a $752.00 target price on shares of Northrop Grumman in a report on Thursday, January 15th. Citigroup raised their price objective on shares of Northrop Grumman from $781.00 to $807.00 and gave the stock a "buy" rating in a report on Thursday, April 2nd. Truist Financial restated a "hold" rating and issued a $623.00 price objective (down from $688.00) on shares of Northrop Grumman in a report on Friday, January 9th. Finally, Argus set a $785.00 price objective on shares of Northrop Grumman in a report on Tuesday, February 10th. Two analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eight have assigned a Hold rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and an average price target of $719.58.

Northrop Grumman Stock Performance

Northrop Grumman stock opened at $611.42 on Wednesday. The company has a current ratio of 1.10, a quick ratio of 1.01 and a debt-to-equity ratio of 0.91. The firm has a 50-day moving average of $705.88 and a 200-day moving average of $639.26. The firm has a market cap of $86.84 billion, a P/E ratio of 20.99, a P/E/G ratio of 4.65 and a beta of 0.04. Northrop Grumman has a 1-year low of $450.13 and a 1-year high of $774.00.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its 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. The company had revenue of $9.88 billion during the quarter, compared to analyst estimates of $9.75 billion. Northrop Grumman had a net margin of 9.97% and a return on equity of 25.57%. Northrop Grumman's revenue for the quarter was up 4.4% on a year-over-year basis. During the same period in the prior year, the business posted $6.06 earnings per share. Northrop Grumman has set its FY 2026 guidance at 27.400-27.900 EPS. Sell-side analysts expect that Northrop Grumman will post 28.11 EPS for the current year.

Insider Activity at Northrop Grumman

In other Northrop Grumman news, Director Mark A. Welsh III sold 95 shares of the firm's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $684.52, for a total value of $65,029.40. Following the completion of the sale, the director directly owned 4,203 shares in the company, valued at $2,877,037.56. This trade represents a 2.21% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, VP Benjamin R. Davies sold 2,189 shares of the firm's stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $719.61, for a total transaction of $1,575,226.29. Following the completion of the sale, the vice president owned 151 shares of the company's stock, valued at $108,661.11. This trade represents a 93.55% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last ninety days, insiders have sold 22,431 shares of company stock valued at $15,924,404. 0.21% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Northrop Grumman

A number of institutional investors and hedge funds have recently made changes to their positions in the business. Vanguard Group Inc. increased its stake in shares of Northrop Grumman by 1.5% during 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 purchasing an additional 209,135 shares in the last quarter. Capital World Investors increased its stake in shares of Northrop Grumman by 39.4% during the fourth quarter. Capital World Investors now owns 3,434,041 shares of the aerospace company's stock valued at $1,958,151,000 after purchasing an additional 970,029 shares in the last quarter. Geode Capital Management LLC increased its stake in shares of Northrop Grumman by 0.6% during the fourth quarter. Geode Capital Management LLC now owns 3,149,478 shares of the aerospace company's stock valued at $1,793,478,000 after purchasing an additional 17,948 shares in the last quarter. Franklin Resources Inc. increased its stake in shares of Northrop Grumman by 4.3% during the fourth quarter. Franklin Resources Inc. now owns 3,125,139 shares of the aerospace company's stock valued at $1,781,986,000 after purchasing an additional 128,855 shares in the last quarter. Finally, Invesco Ltd. increased its stake in shares of Northrop Grumman by 3.9% during the fourth quarter. Invesco Ltd. now owns 1,666,517 shares of the aerospace company's stock valued at $950,265,000 after purchasing an additional 62,817 shares in the last quarter. Institutional investors 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 results beat and backlog support — NOC reported $6.14 EPS on ~$9.9B revenue, topping consensus; management highlighted strong aeronautics demand and a backlog that supports multi-year visibility. Northrop Grumman (NOC) Q1 Earnings and Revenues Beat Estimates
• Neutral Sentiment: Analyst view and longer-term targets remain constructive — multiple firms still carry buy ratings and analyst median price targets (~$750) that imply meaningful upside over time, supporting a longer-term bull case despite near-term volatility. Northrop Grumman Stock (NOC) Opinions on Q1 Earnings Release
• Negative Sentiment: Reaffirmed guidance below street expectations — management reiterated FY2026 EPS and revenue targets (EPS 27.40–27.90; revenue $43.5B–$44.0B), which came in slightly below consensus and disappointed investors who had hoped for an upside raise. Stealth Bomber Maker Northrop Grumman Delivers Strong Earnings. The Stock Is Down.
• Negative Sentiment: Quarterly cash use and program adjustment — Q1 showed about $1.6B operating cash use and ~$1.8B free-cash-flow use (seasonal but heavier than some expected) and a $71M unfavorable EAC adjustment in Space Systems (GEM 63XL launch anomaly), raising near-term execution and cash concerns. Northrop Grumman falls as investors focus on Q1 cash burn and a Space Systems charge
• Negative Sentiment: Higher capex tied to B-21 ramp — management raised FY2026 capex to ~$1.85B to support B-21 production capacity expansion, which is positive for program delivery but increases near-term cash needs and capital intensity. Northrop Grumman reaffirms $43.5B-$44B 2026 sales outlook while lifting 2026 capex to $1.85B for B-21 ramp

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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