Northrop Grumman Co. (NYSE:NOC) Given Average Recommendation of “Hold” by Brokerages

Shares of Northrop Grumman Co. (NYSE:NOC) have been given an average recommendation of “Hold” by the fifteen ratings firms that are covering the firm, Marketbeat reports. Nine analysts have rated the stock with a hold rating and six have issued a buy rating on the company. The average 1 year target price among brokers that have issued ratings on the stock in the last year is $551.40.

NOC has been the subject of several recent research reports. StockNews.com downgraded Northrop Grumman from a “strong-buy” rating to a “buy” rating in a report on Saturday. Wells Fargo & Company upgraded shares of Northrop Grumman from an “equal weight” rating to an “overweight” rating and set a $595.00 target price for the company in a research note on Wednesday. Royal Bank of Canada raised their price target on shares of Northrop Grumman from $500.00 to $540.00 and gave the company a “sector perform” rating in a research report on Friday, October 25th. Citigroup increased their price objective on shares of Northrop Grumman from $521.00 to $587.00 and gave the company a “neutral” rating in a research note on Thursday, October 10th. Finally, Susquehanna cut their target price on Northrop Grumman from $625.00 to $557.00 and set a “positive” rating on the stock in a research note on Wednesday.

Northrop Grumman Stock Performance

Shares of NOC stock opened at $458.37 on Friday. The company has a current ratio of 1.09, a quick ratio of 0.97 and a debt-to-equity ratio of 1.00. The firm has a fifty day simple moving average of $484.74 and a two-hundred day simple moving average of $492.64. Northrop Grumman has a 12 month low of $418.60 and a 12 month high of $555.57. The firm has a market capitalization of $66.78 billion, a PE ratio of 28.40, a price-to-earnings-growth ratio of 0.97 and a beta of 0.35.

Northrop Grumman (NYSE:NOC) last posted its earnings results on Thursday, October 24th. The aerospace company reported $7.00 earnings per share for the quarter, topping analysts’ consensus estimates of $6.07 by $0.93. The company had revenue of $10 billion for the quarter, compared to analyst estimates of $10.18 billion. Northrop Grumman had a net margin of 5.79% and a return on equity of 26.57%. The firm’s revenue was up 2.3% compared to the same quarter last year. During the same quarter in the prior year, the business posted $6.18 EPS. Analysts forecast that Northrop Grumman will post 25.93 EPS for the current fiscal year.

Northrop Grumman announced that its board has initiated a stock repurchase program on Wednesday, December 11th that authorizes the company to buyback $3.00 billion in outstanding shares. This buyback authorization authorizes the aerospace company to reacquire up to 4.3% of its stock through open market purchases. Stock buyback programs are typically an indication that the company’s board of directors believes its stock is undervalued.

Northrop Grumman Dividend Announcement

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, December 18th. Investors of record on Monday, December 2nd were issued a $2.06 dividend. This represents a $8.24 annualized dividend and a yield of 1.80%. The ex-dividend date was Monday, December 2nd. Northrop Grumman’s dividend payout ratio (DPR) is presently 51.05%.

Insider Transactions at Northrop Grumman

In other news, VP Benjamin R. Davies sold 1,156 shares of the firm’s stock in a transaction that occurred on Monday, November 11th. The shares were sold at an average price of $532.93, for a total value of $616,067.08. Following the completion of the transaction, the vice president now directly owns 537 shares in the company, valued at approximately $286,183.41. This trade represents a 68.28 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Insiders sold 1,255 shares of company stock valued at $663,859 over the last three months. Company insiders own 0.22% of the company’s stock.

Institutional Inflows and Outflows

Several large investors have recently bought and sold shares of NOC. RPg Family Wealth Advisory LLC purchased a new stake in shares of Northrop Grumman in the third quarter worth $31,000. Meeder Asset Management Inc. raised its holdings in shares of Northrop Grumman by 245.5% in the 2nd quarter. Meeder Asset Management Inc. now owns 76 shares of the aerospace company’s stock valued at $33,000 after acquiring an additional 54 shares in the last quarter. FSA Wealth Management LLC bought a new stake in shares of Northrop Grumman during the 3rd quarter valued at about $36,000. Modus Advisors LLC purchased a new position in shares of Northrop Grumman during the fourth quarter worth about $38,000. Finally, Catalyst Capital Advisors LLC bought a new position in shares of Northrop Grumman in the third quarter worth approximately $40,000. 83.40% of the stock is owned by institutional investors.

Northrop Grumman Company Profile

Northrop Grumman Corporation operates as an aerospace and defense technology company in the United States, Asia/Pacific, Europe, and internationally. The company’s Aeronautics Systems segment designs, develops, manufactures, integrates, and sustains aircraft systems. This segment also offers unmanned autonomous aircraft systems, including high-altitude long-endurance strategic ISR systems and vertical take-off and landing tactical ISR systems; and strategic long-range strike aircraft, tactical fighter and air dominance aircraft, and airborne battle management and command and control systems.