Investors Buy Shares of Northrop Grumman (NOC) on Weakness After Analyst Downgrade

Investors bought shares of Northrop Grumman (NYSE:NOC) on weakness during trading hours on Tuesday after Credit Suisse Group lowered their price target on the stock from $342.00 to $326.00. $136.47 million flowed into the stock on the tick-up and $90.25 million flowed out of the stock on the tick-down, for a money net flow of $46.22 million into the stock. Of all companies tracked, Northrop Grumman had the 14th highest net in-flow for the day. Northrop Grumman traded down ($6.86) for the day and closed at $324.50

Several other equities analysts have also weighed in on NOC. Royal Bank of Canada set a $389.00 target price on shares of Northrop Grumman and gave the company a “buy” rating in a report on Tuesday, January 23rd. Cowen reiterated a “hold” rating and issued a $310.00 target price on shares of Northrop Grumman in a report on Thursday, January 25th. Robert W. Baird reiterated a “buy” rating and issued a $394.00 target price on shares of Northrop Grumman in a report on Friday, January 26th. Zacks Investment Research lowered shares of Northrop Grumman from a “buy” rating to a “hold” rating in a report on Friday, January 26th. Finally, Argus boosted their target price on shares of Northrop Grumman to $375.00 and gave the company a “positive” rating in a report on Monday, February 5th. Six analysts have rated the stock with a hold rating and fourteen have given a buy rating to the company. Northrop Grumman currently has a consensus rating of “Buy” and an average target price of $364.29.

In other news, VP Michael A. Hardesty sold 1,296 shares of the company’s stock in a transaction that occurred on Monday, February 26th. The shares were sold at an average price of $353.20, for a total value of $457,747.20. Following the transaction, the vice president now directly owns 6,677 shares in the company, valued at approximately $2,358,316.40. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, VP Janis G. Pamiljans sold 1,568 shares of the company’s stock in a transaction that occurred on Wednesday, February 28th. The stock was sold at an average price of $354.30, for a total transaction of $555,542.40. Following the completion of the transaction, the vice president now owns 6,677 shares in the company, valued at $2,365,661.10. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 3,819 shares of company stock worth $1,336,891. Company insiders own 0.62% of the company’s stock.

A number of institutional investors and hedge funds have recently made changes to their positions in NOC. Icon Wealth Partners LLC purchased a new stake in shares of Northrop Grumman in the 4th quarter valued at approximately $100,000. Truewealth LLC purchased a new stake in shares of Northrop Grumman in the 4th quarter valued at approximately $110,000. Centaurus Financial Inc. purchased a new stake in shares of Northrop Grumman in the 1st quarter valued at approximately $147,000. Optimum Investment Advisors purchased a new stake in shares of Northrop Grumman in the 1st quarter valued at approximately $154,000. Finally, Crewe Advisors LLC purchased a new stake in shares of Northrop Grumman in the 4th quarter valued at approximately $159,000. 81.63% of the stock is currently owned by hedge funds and other institutional investors.

The company has a current ratio of 2.52, a quick ratio of 2.45 and a debt-to-equity ratio of 1.87. The stock has a market cap of $57.38 billion, a P/E ratio of 24.39, a P/E/G ratio of 2.26 and a beta of 0.78.

Northrop Grumman (NYSE:NOC) last announced its quarterly earnings data on Wednesday, April 25th. The aerospace company reported $4.21 EPS for the quarter, beating the Zacks’ consensus estimate of $3.63 by $0.58. Northrop Grumman had a net margin of 8.05% and a return on equity of 35.83%. The company had revenue of $6.74 billion for the quarter, compared to the consensus estimate of $6.62 billion. During the same period in the prior year, the firm posted $3.63 EPS. The company’s quarterly revenue was up 7.5% compared to the same quarter last year. analysts anticipate that Northrop Grumman will post 15.89 EPS for the current year.

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 20th. Shareholders of record on Monday, June 4th will be given a $1.20 dividend. The ex-dividend date is Friday, June 1st. This is an increase from Northrop Grumman’s previous quarterly dividend of $1.10. This represents a $4.80 dividend on an annualized basis and a dividend yield of 1.48%. Northrop Grumman’s dividend payout ratio is currently 33.13%.

About Northrop Grumman

Northrop Grumman Corporation operates as a security company for government and commercial customers worldwide. It provides products, systems, and solutions in autonomous systems; cyber; command, control, communications and computers, intelligence, surveillance, and reconnaissance (C4ISR); strike; and logistics and modernization.

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