Northrop Grumman (NYSE:NOC) Stock Bumped Up to Strong-Buy by Robert W. Baird

Robert W. Baird upgraded shares of Northrop Grumman (NYSE:NOC) from a hold rating to a strong-buy rating in a report released on Wednesday morning,Zacks reports.

NOC has been the subject of a number of other research reports. UBS Group lifted their price objective on shares of Northrop Grumman from $694.00 to $698.00 and gave the company a “buy” rating in a report on Wednesday. Jefferies Financial Group reduced their target price on shares of Northrop Grumman from $620.00 to $580.00 and set a “hold” rating on the stock in a report on Friday, June 26th. The Goldman Sachs Group raised their price target on shares of Northrop Grumman from $533.00 to $538.00 and gave the company a “neutral” rating in a research report on Monday, July 27th. Citigroup boosted their price target on shares of Northrop Grumman from $617.00 to $667.00 and gave the stock a “buy” rating in a research note on Thursday, August 13th. Finally, Sanford C. Bernstein reduced their price objective on Northrop Grumman from $620.00 to $556.00 and set a “market perform” rating on the stock in a research note on Wednesday, October 14th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have assigned 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 has an average rating of “Moderate Buy” and an average target price of $641.35.

Northrop Grumman Price Performance

NOC opened at $539.46 on Wednesday. The stock’s 50-day moving average price is $522.28 and its 200 day moving average price is $548.98. Northrop Grumman has a 12-month low of $470.06 and a 12-month high of $774.00. The firm has a market cap of $76.62 billion, a price-to-earnings ratio of 17.02, a PEG ratio of 3.05 and a beta of -0.11. The company has a current ratio of 1.23, a quick ratio of 1.06 and a debt-to-equity ratio of 0.77.

Northrop Grumman (NYSE:NOC) last released its earnings results on Tuesday, October 20th. The aerospace company reported $7.89 earnings per share for the quarter, beating the consensus estimate of $7.18 by $0.71. The company had revenue of $11.12 billion during the quarter, compared to the consensus estimate of $11.14 billion. Northrop Grumman had a return on equity of 23.46% and a net margin of 10.37%. Northrop Grumman’s revenue was up 6.7% compared to the same quarter last year. During the same period in the previous year, the company posted $7.67 EPS. As a group, sell-side analysts expect that Northrop Grumman will post 29.55 earnings per share for the current year.

Northrop Grumman Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Wednesday, September 16th. Shareholders of record on Monday, August 31st were issued a dividend of $2.47 per share. This represents a $9.88 annualized dividend and a yield of 1.8%. The ex-dividend date was Monday, August 31st. Northrop Grumman’s payout ratio is 31.17%.

Insider Activity at Northrop Grumman

In other Northrop Grumman news, Director Mark Welsh, III sold 95 shares of the stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $547.53, for a total value of $52,015.35. Following the sale, the director directly owned 4,393 shares of the company’s stock, valued at approximately $2,405,299.29. This represents a 2.12% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 0.21% of the company’s stock.

Institutional Investors Weigh In On Northrop Grumman

Several institutional investors have recently modified their holdings of NOC. Koshinski Asset Management Inc. increased its holdings in Northrop Grumman by 2.2% in the first quarter. Koshinski Asset Management Inc. now owns 839 shares of the aerospace company’s stock valued at $573,000 after buying an additional 18 shares during the last quarter. Drucker Wealth 3.0 LLC lifted its holdings in Northrop Grumman by 3.2% during the 1st quarter. Drucker Wealth 3.0 LLC now owns 618 shares of the aerospace company’s stock worth $422,000 after buying an additional 19 shares during the last quarter. Glenview Trust Co lifted its holdings in Northrop Grumman by 1.1% during the 1st quarter. Glenview Trust Co now owns 1,796 shares of the aerospace company’s stock worth $1,225,000 after buying an additional 19 shares during the last quarter. Wesbanco Bank Inc. boosted its position in shares of Northrop Grumman by 1.2% during the 1st quarter. Wesbanco Bank Inc. now owns 1,673 shares of the aerospace company’s stock worth $1,141,000 after acquiring an additional 20 shares in the last quarter. Finally, Quadrant Private Wealth Management LLC boosted its position in shares of Northrop Grumman by 5.4% during the 1st quarter. Quadrant Private Wealth Management LLC now owns 392 shares of the aerospace company’s stock worth $268,000 after acquiring an additional 20 shares in the last quarter. 83.40% of the stock is owned by hedge funds and other institutional investors.

Key Northrop Grumman News

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

• Positive Sentiment: Q3 earnings beat expectations. Northrop reported adjusted earnings of $7.89 per share, ahead of the approximately $7.18 consensus, while revenue rose 6.7% year over year to $11.12 billion and broadly matched estimates. Northrop Grumman Shares Up on Earnings Beat
• Positive Sentiment: Management raised its FY 2026 earnings outlook. The company now expects EPS of $29.35-$29.75, above the consensus estimate of $28.97. Revenue guidance of $43.8 billion-$44.3 billion was maintained around analysts’ expectations. Northrop Grumman Q3 Earnings Surpass Estimates
• Positive Sentiment: Record backlog supports longer-term visibility. Backlog reached approximately $109.6 billion-$110 billion, up about 20% year over year, with a 1.5x book-to-bill ratio. Management also projected 5%-7% sales growth in 2027, supported by B-21 bomber investment and demand across defense and space programs. Northrop Grumman Earnings Call Highlights
• Positive Sentiment: Analyst sentiment improved. BNP Paribas Exane raised its price target to $600 and rated the stock “outperform,” while Baird increased its target to $675 and upgraded the shares. Bank of America maintained a Buy rating with a $750 target. Northrop Grumman Analysts Boost Their Forecasts
• Neutral Sentiment: Investors are weighing the growth outlook against higher capital spending, potential margin pressure and paused share buybacks. The company’s sizable government exposure also leaves it sensitive to defense-budget priorities and political developments.

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.