Wall Street Zen Downgrades Northrop Grumman (NYSE:NOC) to Hold

Key Points

• Wall Street Zen downgraded Northrop Grumman (NOC) from "strong-buy" to "hold," while the analyst consensus remains a Moderate Buy with an average price target of $713.37 (2 Strong Buy, 10 Buy, 8 Hold).
• Northrop posted a modest Q1 beat—$6.14 EPS vs. $6.06 expected and $9.88B in revenue—and set FY2026 guidance of 27.4–27.9 EPS (analysts average ~27.9).
• Market sentiment is mixed despite the beat: the stock is trading below its 50- and 200-day moving averages near $575, investors cite ramp-related B‑21 cost concerns, and insiders including CEO Kathy Warden sold shares (20,000 sold).

Northrop Grumman (NYSE:NOC - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "strong-buy" rating to a "hold" rating in a research note issued on Saturday.

Other equities research analysts have also issued reports about the stock. Jefferies Financial Group boosted their price objective on shares of Northrop Grumman from $690.00 to $710.00 and gave the stock a "hold" rating in a research report on Thursday, April 9th. Susquehanna reiterated a "positive" rating and issued a $752.00 price objective on shares of Northrop Grumman in a research report on Thursday, January 15th. Royal Bank Of Canada boosted their price objective on shares of Northrop Grumman from $715.00 to $750.00 and gave the stock an "outperform" rating in a research report on Wednesday, January 28th. Morgan Stanley decreased their price objective on shares of Northrop Grumman from $765.00 to $745.00 and set an "overweight" rating on the stock in a research report on Wednesday. Finally, Sanford C. Bernstein restated a "market perform" rating and issued a $727.00 target price on shares of Northrop Grumman in a report on Monday, January 12th. Two investment analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, Northrop Grumman has an average rating of "Moderate Buy" and a consensus price target of $713.37.

Northrop Grumman Price Performance

Northrop Grumman stock opened at $575.57 on Friday. Northrop Grumman has a 52 week low of $453.01 and a 52 week high of $774.00. The company has a quick ratio of 1.01, a current ratio of 1.15 and a debt-to-equity ratio of 0.84. The firm's 50-day simple moving average is $699.43 and its 200 day simple moving average is $638.25. The firm has a market capitalization of $81.75 billion, a PE ratio of 18.01, a P/E/G ratio of 4.19 and a beta of 0.04.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings data on Tuesday, April 21st. The aerospace company reported $6.14 EPS for the quarter, topping the consensus estimate of $6.06 by $0.08. Northrop Grumman had a net margin of 10.80% and a return on equity of 24.72%. The business had revenue of $9.88 billion for the quarter, compared to analyst estimates of $9.75 billion. During the same period in the previous year, the firm earned $6.06 EPS. The business'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. On average, equities research analysts predict that Northrop Grumman will post 27.9 EPS for the current fiscal year.

Insider Activity at Northrop Grumman

In other news, CEO Kathy J. Warden sold 20,000 shares of the company's stock in a transaction dated Friday, February 6th. The shares were sold at an average price of $708.82, for a total transaction of $14,176,400.00. Following the completion of the transaction, the chief executive officer 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 SEC, which is available through this link. Also, Director Mark A. Welsh III sold 95 shares of the company's stock in a transaction dated Monday, February 2nd. The shares were sold at an average price of $684.52, for a total transaction of $65,029.40. Following the transaction, 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 position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders sold 22,431 shares of company stock worth $15,924,404. 0.21% of the stock is owned by insiders.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently modified their holdings of the stock. Financial Life Planners acquired a new position in shares of Northrop Grumman during the 3rd quarter valued at about $27,000. Torren Management LLC acquired a new position in shares of Northrop Grumman during the 4th quarter valued at about $26,000. Karpus Management Inc. acquired a new position in shares of Northrop Grumman during the 4th quarter valued at about $26,000. Physician Wealth Advisors Inc. increased its position in 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 purchasing an additional 32 shares in the last quarter. Finally, Hopwood Financial Services Inc. acquired a new stake in Northrop Grumman during the 3rd quarter worth approximately $30,000. Institutional investors and hedge funds own 83.40% of the company's stock.

Key Headlines Impacting Northrop Grumman

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

• Positive Sentiment: Multiple brokerages reaffirm bullish views — Morgan Stanley and Susquehanna kept buy ratings, and BTIG also reiterated a Buy, supporting a longer-term constructive view on NOC. Morgan Stanley Sticks to Its Buy Rating for Northrop Grumman (NOC) Susquehanna Remains a Buy on Northrop Grumman (NOC) BTIG Research Reaffirms "Buy" Rating for Northrop Grumman NYSE: NOC
• Positive Sentiment: Independent bullish research: Seeking Alpha upgraded NOC to a Strong Buy after the recent pullback, arguing the company’s exposure to the nuclear triad and defense backlog makes it attractive on dips. Northrop Grumman: The Nuclear Triad Winner Is Now A Strong Buy
• Positive Sentiment: Citi’s analyst also flagged the selloff as overdone and said defense stocks can survive a Democratic midterm outcome, framing the pullback as a buy-the-dip opportunity for long-term investors. Defense Stocks Can Survive Big Win by Democrats in Midterms, Says Citi
• Neutral Sentiment: Q1 results were a modest beat on EPS and revenue, and management kept FY‑2026 guidance largely unchanged — the report confirmed execution but didn’t raise upside expectations, leaving near-term sentiment mixed. Northrop Grumman's shares slip as outlook matches estimates
• Negative Sentiment: Sector-wide selloff and investor risk-off on defense exposure have pressured NOC: Citi highlighted that major defense names have dropped significantly since recent geopolitical events, contributing to the pullback. Defense Stocks Selloff Deepens. The Sector Can Survive a ‘Blue Wave.’
• Negative Sentiment: Citigroup trimmed Northrop’s price target from $807 to $742 — still a Buy, but the cut signals reduced near-term upside expectations and may weigh on sentiment. Citigroup Lowers Price Target
• Negative Sentiment: Jefferies moved to a Hold, adding to mixed analyst signals. Northrop Grumman (NOC) Receives a Hold from Jefferies
• Negative Sentiment: Market reaction to the Q1 beat included concern about a faster-than-expected B-21 ramp and near-term ramp-related costs/inefficiencies, which investors view as margin pressure during the scale-up. Why Northrop Grumman (NOC) Is Down After Q1 Beat And Faster B-21 Ramp News
• Negative Sentiment: Technicals: the stock is trading below its 50- and 200-day moving averages and volume is below average — factors that tend to amplify downward pressure until momentum stabilizes. Market technicals for NOC

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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