Northrop Grumman (NYSE:NOC) Hits New 12-Month Low - Here's Why

Key Points

• Northrop Grumman shares hit a new 52-week low, trading as low as $470.06 and closing around $476.45, approximately 1% lower.
• Despite the decline, analysts maintain a consensus “Moderate Buy” rating with an average price target of $647.57, well above the current level.
• The company reported quarterly adjusted EPS of $7.68, beating estimates of $6.82, while revenue rose 5.1% year over year to $10.88 billion. Northrop Grumman also pays a $2.47 quarterly dividend, yielding about 2.1% annually.

Northrop Grumman Corporation (NYSE:NOC - Get Free Report)'s stock price reached a new 52-week low during mid-day trading on Friday. The stock traded as low as $470.06 and last traded at $476.4540, with a volume of 308156 shares trading hands. The stock had previously closed at $482.00.

Analysts Set New Price Targets

Several research analysts recently weighed in on NOC shares. TD Cowen upped their price objective on shares of Northrop Grumman from $550.00 to $590.00 and gave the stock a "hold" rating in a research report on Wednesday, August 19th. Citigroup increased their price objective on Northrop Grumman from $617.00 to $667.00 and gave the company a "buy" rating in a research note on Thursday, August 13th. Weiss Ratings lowered shares of Northrop Grumman from a "hold (c+)" rating to a "hold (c)" rating in a report on Thursday, September 10th. Wells Fargo & Company restated an "overweight" rating and issued a $620.00 price objective on shares of Northrop Grumman in a research report on Wednesday, July 8th. Finally, Robert W. Baird set a $500.00 price target on Northrop Grumman in a report on Wednesday, July 22nd. Two equities research analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and nine have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average price target of $647.57.

Northrop Grumman Trading Down 1.0%

The stock has a market cap of $67.77 billion, a PE ratio of 15.14, a PEG ratio of 2.83 and a beta of -0.11. The stock's fifty day moving average price is $538.98 and its 200 day moving average price is $568.95. The company has a quick ratio of 1.06, a current ratio of 1.17 and a debt-to-equity ratio of 0.81.

Northrop Grumman (NYSE:NOC - Get Free Report) last issued its earnings results on Tuesday, July 21st. The aerospace company reported $7.68 EPS for the quarter, beating the consensus estimate of $6.82 by $0.86. Northrop Grumman had a return on equity of 24.25% and a net margin of 10.48%.The business had revenue of $10.88 billion for the quarter, compared to the consensus estimate of $10.80 billion. During the same period last year, the business posted $8.15 EPS. The company's revenue was up 5.1% compared to the same quarter last year. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. On average, sell-side analysts forecast that Northrop Grumman Corporation will post 28.97 EPS for the current year.

Northrop Grumman Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 16th. Investors of record on Monday, August 31st were given a dividend of $2.47 per share. This represents a $9.88 dividend on an annualized basis and a yield of 2.1%. The ex-dividend date was Monday, August 31st. Northrop Grumman's dividend payout ratio is 31.39%.

Insider Activity

In other Northrop Grumman news, Director Mark Welsh, III sold 95 shares of the business's stock in a transaction dated Monday, August 3rd. The stock was sold at an average price of $547.53, for a total transaction of $52,015.35. Following the completion of the sale, the director directly owned 4,393 shares in the company, valued at $2,405,299.29. The trade was a 2.12% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.21% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently modified their holdings of NOC. Perkins Coie Trust Co purchased a new position in Northrop Grumman during the second quarter valued at $29,000. Financial Life Planners purchased a new stake in Northrop Grumman during the first quarter valued at approximately $30,000. Navigoe LLC purchased a new position in shares of Northrop Grumman in the 2nd quarter worth approximately $30,000. Plato Investment Management Ltd bought a new position in shares of Northrop Grumman during the 2nd quarter valued at approximately $30,000. Finally, Whipplewood Advisors LLC raised its holdings in Northrop Grumman by 380.0% during the 1st quarter. Whipplewood Advisors LLC now owns 48 shares of the aerospace company's stock valued at $33,000 after buying an additional 38 shares during the period. Hedge funds and other institutional investors own 83.40% of the company's stock.

About Northrop Grumman

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. Department of Defense and other government agencies representing its primary markets. Its work spans advanced aircraft, autonomous systems, space systems, missile defense, command and control, cybersecurity, and other mission-critical technologies.

The company's offerings include strategic and tactical aircraft, unmanned aerial vehicles, aircraft systems, satellites, spacecraft, launch vehicles, missile-warning and missile-defense systems, secure communications, and cyber and information systems.

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