Northrop Grumman (NYSE:NOC) Stock Falls 1.7% - Time to Sell?

Key Points

• Northrop Grumman shares fell 1.7% to about $510.87, trading below their 50-day and 200-day moving averages.
• Analysts have recently lowered their price targets, but the stock retains a “Moderate Buy” consensus with an average target of $641.91.
• The company reported quarterly earnings and revenue above expectations, expects fiscal 2026 EPS of $28.60–$29.10, and pays a $2.47 quarterly dividend yielding approximately 1.9%.

Shares of Northrop Grumman Corporation (NYSE:NOC - Get Free Report) traded down 1.7% on Monday. The stock traded as low as $508.50 and last traded at $510.87. Approximately 1,022,804 shares were traded during trading, an increase of 11% from the average daily volume of 921,291 shares. The stock had previously closed at $519.86.

Wall Street Analysts Forecast Growth

Several research firms have commented on NOC. BNP Paribas Exane lowered their price objective on Northrop Grumman from $640.00 to $540.00 and set an "outperform" rating on the stock in a research report on Tuesday, October 6th. Wells Fargo & Company reaffirmed an "overweight" rating and set a $620.00 price objective (down from $800.00) on shares of Northrop Grumman in a research note on Wednesday, July 8th. TD Cowen cut their target price on shares of Northrop Grumman from $590.00 to $540.00 and set a "hold" rating for the company in a report on Friday, October 9th. Susquehanna cut their target price on shares of Northrop Grumman from $785.00 to $655.00 and set a "positive" rating for the company in a report on Wednesday, July 22nd. Finally, Jefferies Financial Group decreased their target price on shares of Northrop Grumman from $620.00 to $580.00 and set a "hold" rating for the company in a research note on Friday, June 26th. One analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $641.91.

Northrop Grumman Price Performance

The company has a quick ratio of 1.06, a current ratio of 1.17 and a debt-to-equity ratio of 0.81. The company has a market capitalization of $72.56 billion, a price-to-earnings ratio of 16.23, a PEG ratio of 3.05 and a beta of -0.11. The stock's 50-day simple moving average is $525.17 and its two-hundred day simple moving average is $552.48.

Northrop Grumman (NYSE:NOC - Get Free Report) last announced its earnings results on Tuesday, July 21st. The aerospace company reported $7.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $6.82 by $0.86. The business had revenue of $10.88 billion for the quarter, compared to analyst estimates of $10.80 billion. Northrop Grumman had a net margin of 10.48% and a return on equity of 24.25%. The company's revenue for the quarter was up 5.1% compared to the same quarter last year. During the same quarter last year, the business earned $8.15 earnings per share. Northrop Grumman has set its FY 2026 guidance at 28.600-29.100 EPS. Equities research analysts predict that Northrop Grumman Corporation will post 28.96 earnings per share 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 issued a $2.47 dividend. This represents a $9.88 annualized dividend and a yield of 1.9%. The ex-dividend date was Monday, August 31st. Northrop Grumman's payout ratio is presently 31.39%.

Insider Buying and Selling

In other Northrop Grumman news, Director Mark Welsh, III sold 95 shares of the business's stock in a transaction that occurred on 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 approximately $2,405,299.29. The trade was a 2.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Company insiders own 0.21% of the company's stock.

Institutional Trading of Northrop Grumman

A number of institutional investors have recently made changes to their positions in the company. Financial Life Planners purchased a new position in Northrop Grumman in the 1st quarter valued at $30,000. Whipplewood Advisors LLC boosted its stake in Northrop Grumman by 380.0% during the 1st quarter. Whipplewood Advisors LLC now owns 48 shares of the aerospace company's stock worth $33,000 after purchasing an additional 38 shares during the last quarter. Perkins Coie Trust Co acquired a new stake in Northrop Grumman during the 2nd quarter worth $29,000. Plato Investment Management Ltd purchased a new stake in shares of Northrop Grumman during the second quarter worth $30,000. Finally, Navigoe LLC purchased a new stake in shares of Northrop Grumman during the second quarter worth $30,000. 83.40% of the stock is owned by institutional investors and hedge funds.

Northrop Grumman Company Profile

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. government representing its primary customer base. The company operates across aerospace, defense, space, cybersecurity and advanced technology markets.

Its products and services include military aircraft and autonomous systems, space systems and satellites, missile defense technologies, command-and-control systems, cyber solutions, sensors, communications networks and other mission-critical systems.

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