Citigroup Upgrades Northrop Grumman (NYSE:NOC) to "Buy"

Northrop Grumman (NYSE:NOC - Get Free Report) was upgraded by investment analysts at Citigroup from a "neutral" rating to a "buy" rating in a research report issued to clients and investors on Tuesday, Marketbeat reports. The firm currently has a $587.00 price objective on the aerospace company's stock. Citigroup's target price suggests a potential upside of 16.43% from the stock's current price.

A number of other equities research analysts also recently commented on NOC. Truist Financial started coverage on Northrop Grumman in a report on Tuesday, January 14th. They set a "buy" rating and a $544.00 target price for the company. TD Cowen raised shares of Northrop Grumman to a "hold" rating in a report on Tuesday, October 8th. StockNews.com raised shares of Northrop Grumman from a "buy" rating to a "strong-buy" rating in a report on Sunday. Barclays lowered 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. Finally, UBS Group lifted their price objective on Northrop Grumman from $614.00 to $643.00 and gave the company a "buy" rating in a research note on Friday, October 25th. Eight equities research analysts have rated the stock with a hold rating, eight have assigned a buy rating and one has issued a strong buy rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $550.94.

Northrop Grumman Stock Up 4.5 %

Shares of NOC traded up $21.78 during trading hours on Tuesday, hitting $504.16. The company had a trading volume of 1,309,432 shares, compared to its average volume of 820,116. Northrop Grumman has a one year low of $418.60 and a one year high of $555.57. The company's fifty day moving average price is $479.52 and its two-hundred day moving average price is $494.82. The company has a market capitalization of $73.46 billion, a PE ratio of 31.24, a price-to-earnings-growth ratio of 0.91 and a beta of 0.35. The company has a current ratio of 1.09, a quick ratio of 0.97 and a debt-to-equity ratio of 1.00.

Northrop Grumman (NYSE:NOC - Get Free Report) last released its quarterly earnings results on Thursday, October 24th. The aerospace company reported $7.00 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.07 by $0.93. Northrop Grumman had a net margin of 5.79% and a return on equity of 26.57%. The business had revenue of $10 billion for the quarter, compared to analyst estimates of $10.18 billion. During the same period in the previous year, the company earned $6.18 earnings per share. The business's revenue for the quarter was up 2.3% on a year-over-year basis. As a group, equities analysts forecast that Northrop Grumman will post 25.95 earnings per share for the current fiscal year.

Northrop Grumman declared that its board has approved a stock repurchase program on Wednesday, December 11th that permits the company to buyback $3.00 billion in 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 typically an indication that the company's leadership believes its stock is undervalued.

Insider Activity

In other news, VP Benjamin R. Davies sold 1,156 shares of the stock in a transaction on Monday, November 11th. The stock was sold at an average price of $532.93, for a total value of $616,067.08. Following the sale, 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Over the last ninety days, insiders sold 1,255 shares of company stock valued at $663,859. 0.22% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Northrop Grumman

Several institutional investors have recently added to or reduced their stakes in NOC. RPg Family Wealth Advisory LLC purchased a new position in Northrop Grumman during the 3rd quarter worth $31,000. Albion Financial Group UT acquired a new stake in shares of Northrop Grumman during the fourth quarter worth $33,000. FSA Wealth Management LLC acquired a new position in Northrop Grumman in the 3rd quarter valued at $36,000. Modus Advisors LLC acquired a new position in Northrop Grumman in the 4th quarter valued at $38,000. Finally, Catalyst Capital Advisors LLC purchased a new stake in shares of Northrop Grumman during the 3rd quarter worth $40,000. Hedge funds and other institutional investors own 83.40% of the company's stock.

About Northrop Grumman

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.