Northrop Grumman (NYSE:NOC) Cut to Buy at StockNews.com

StockNews.com downgraded shares of Northrop Grumman (NYSE:NOC) from a strong-buy rating to a buy rating in a research note published on Saturday morning.

Several other research firms have also weighed in on NOC. Royal Bank of Canada increased their target price on shares of Northrop Grumman from $500.00 to $540.00 and gave the stock a “sector perform” rating in a report on Friday, October 25th. Citigroup raised their price objective on Northrop Grumman from $521.00 to $587.00 and gave the stock a “neutral” rating in a research note on Thursday, October 10th. UBS Group boosted their target price on Northrop Grumman from $614.00 to $643.00 and gave the company a “buy” rating in a research note on Friday, October 25th. Susquehanna raised their price target on Northrop Grumman from $560.00 to $625.00 and gave the stock a “positive” rating in a research report on Friday, October 25th. Finally, Wells Fargo & Company decreased their price objective on Northrop Grumman from $565.00 to $505.00 and set an “equal weight” rating for the company in a research report on Wednesday, December 11th. Ten analysts have rated the stock with a hold rating and six have given a buy rating to the company’s stock. According to MarketBeat.com, Northrop Grumman presently has an average rating of “Hold” and a consensus price target of $553.27.

Northrop Grumman Stock Up 0.5 %

Shares of NYSE:NOC opened at $482.61 on Friday. The company has a 50 day moving average of $505.74 and a 200-day moving average of $488.75. Northrop Grumman has a one year low of $418.60 and a one year high of $555.57. The stock has a market cap of $70.31 billion, a price-to-earnings ratio of 29.90, a P/E/G ratio of 0.96 and a beta of 0.33. The company has a debt-to-equity ratio of 1.00, a current ratio of 1.09 and a quick ratio of 0.97.

Northrop Grumman (NYSE:NOC) last announced its quarterly earnings data on Thursday, October 24th. The aerospace company reported $7.00 EPS for the quarter, topping analysts’ consensus estimates of $6.07 by $0.93. The business had revenue of $10 billion during the quarter, compared to analysts’ expectations of $10.18 billion. Northrop Grumman had a return on equity of 26.57% and a net margin of 5.79%. The firm’s quarterly revenue was up 2.3% compared to the same quarter last year. During the same period in the previous year, the firm earned $6.18 earnings per share. On average, sell-side analysts forecast that Northrop Grumman will post 25.93 earnings per share for the current year.

Northrop Grumman Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Shareholders of record on Monday, December 2nd will be given a dividend of $2.06 per share. This represents a $8.24 annualized dividend and a yield of 1.71%. The ex-dividend date of this dividend is Monday, December 2nd. Northrop Grumman’s dividend payout ratio (DPR) is currently 51.05%.

Northrop Grumman declared that its board has authorized a stock repurchase program on Wednesday, December 11th that permits the company to buyback $3.00 billion in outstanding shares. This buyback authorization permits the aerospace company to purchase up to 4.3% of its stock through open market purchases. Stock buyback programs are often a sign that the company’s board of directors believes its shares are undervalued.

Insider Activity

In other Northrop Grumman news, VP Benjamin R. Davies sold 1,156 shares of the business’s stock in a transaction that occurred on Monday, November 11th. The stock was sold at an average price of $532.93, for a total transaction of $616,067.08. Following the transaction, the vice president now owns 537 shares of the company’s stock, valued at $286,183.41. The trade was a 68.28 % decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In the last ninety days, insiders have sold 1,255 shares of company stock valued at $666,461. 0.22% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. RPg Family Wealth Advisory LLC bought a new stake in shares of Northrop Grumman during the 3rd quarter worth about $31,000. Meeder Asset Management Inc. boosted its holdings in shares of Northrop Grumman by 245.5% during the second quarter. Meeder Asset Management Inc. now owns 76 shares of the aerospace company’s stock worth $33,000 after acquiring an additional 54 shares during the period. FSA Wealth Management LLC bought a new stake in shares of Northrop Grumman during the third quarter worth approximately $36,000. Catalyst Capital Advisors LLC acquired a new position in shares of Northrop Grumman in the third quarter valued at approximately $40,000. Finally, Strategic Financial Concepts LLC bought a new position in shares of Northrop Grumman during the second quarter worth approximately $47,000. 83.40% of the stock is currently 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.