Northrop Grumman (NYSE:NOC) Upgraded by Royal Bank of Canada to "Outperform" Rating

Royal Bank of Canada upgraded shares of Northrop Grumman (NYSE:NOC - Free Report) from a sector perform rating to an outperform rating in a report published on Thursday morning, MarketBeat reports. The brokerage currently has $575.00 price objective on the aerospace company's stock, up from their prior price objective of $500.00.

Other analysts also recently issued research reports about the stock. Barclays reduced their price target on shares of Northrop Grumman from $550.00 to $500.00 and set an "equal weight" rating on the stock in a report on Monday, January 6th. StockNews.com lowered Northrop Grumman from a "strong-buy" rating to a "buy" rating in a research note on Monday, February 3rd. UBS Group dropped their price target on Northrop Grumman from $579.00 to $558.00 and set a "buy" rating for the company in a research report on Friday, January 31st. Susquehanna reduced their price objective on Northrop Grumman from $625.00 to $557.00 and set a "positive" rating on the stock in a research report on Wednesday, January 8th. Finally, Argus raised Northrop Grumman to a "strong-buy" rating in a research note on Wednesday, February 26th. Eight analysts have rated the stock with a hold rating, ten have issued a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $545.06.

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Northrop Grumman Price Performance

Shares of NYSE NOC traded down $1.96 during midday trading on Thursday, hitting $511.86. The company had a trading volume of 730,463 shares, compared to its average volume of 866,646. The firm has a market capitalization of $74.09 billion, a price-to-earnings ratio of 18.06, a price-to-earnings-growth ratio of 3.73 and a beta of 0.31. Northrop Grumman has a twelve month low of $418.60 and a twelve month high of $555.57. The business has a 50-day simple moving average of $478.20 and a two-hundred day simple moving average of $492.84. The company has a quick ratio of 0.91, a current ratio of 1.01 and a debt-to-equity ratio of 0.96.

Northrop Grumman (NYSE:NOC - Get Free Report) last posted its quarterly earnings results on Thursday, January 30th. The aerospace company reported $6.39 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.27 by $0.12. Northrop Grumman had a net margin of 10.17% and a return on equity of 26.24%. Equities research analysts anticipate that Northrop Grumman will post 28.05 earnings per share for the current year.

Northrop Grumman declared that its board has authorized a stock buyback plan on Wednesday, December 11th that allows the company to buyback $3.00 billion in outstanding shares. This buyback authorization allows the aerospace company to reacquire up to 4.3% of its stock through open market purchases. Stock buyback plans are generally a sign that the company's management believes its stock is undervalued.

Northrop Grumman Announces Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Wednesday, March 19th. Stockholders of record on Monday, March 3rd were given a $2.06 dividend. This represents a $8.24 annualized dividend and a dividend yield of 1.61%. The ex-dividend date was Monday, March 3rd. Northrop Grumman's payout ratio is currently 29.08%.

Insider Buying and Selling

In other news, CEO Kathy J. Warden sold 3,750 shares of the business's stock in a transaction on Thursday, March 6th. The shares were sold at an average price of $475.65, for a total transaction of $1,783,687.50. Following the transaction, the chief executive officer now directly owns 212,852 shares of the company's stock, valued at approximately $101,243,053.80. The trade was a 1.73 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, VP Benjamin R. Davies sold 464 shares of the firm's stock in a transaction on Friday, February 28th. The shares were sold at an average price of $460.75, for a total transaction of $213,788.00. Following the sale, the vice president now directly owns 245 shares of the company's stock, valued at approximately $112,883.75. The trade was a 65.44 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 4,505 shares of company stock valued at $2,126,405. Company insiders own 0.22% of the company's stock.

Hedge Funds Weigh In On Northrop Grumman

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Prostatis Group LLC lifted its stake in shares of Northrop Grumman by 23.2% in the fourth quarter. Prostatis Group LLC now owns 2,315 shares of the aerospace company's stock worth $1,086,000 after acquiring an additional 436 shares in the last quarter. DSG Capital Advisors LLC acquired a new position in shares of Northrop Grumman in the 4th quarter valued at approximately $664,000. 111 Capital purchased a new position in shares of Northrop Grumman during the 4th quarter valued at approximately $669,000. Wealth Enhancement Advisory Services LLC grew its position in shares of Northrop Grumman by 106.8% during the fourth quarter. Wealth Enhancement Advisory Services LLC now owns 59,612 shares of the aerospace company's stock worth $27,975,000 after buying an additional 30,787 shares in the last quarter. Finally, Lighthouse Financial LLC bought a new stake in shares of Northrop Grumman in the fourth quarter worth $939,000. 83.40% of the stock is owned by hedge funds and other 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.