Northrop Grumman (NOC) Upgraded to Outperform at Credit Suisse Group

Northrop Grumman (NYSE:NOC) was upgraded by stock analysts at Credit Suisse Group from a “neutral” rating to an “outperform” rating in a research note issued to investors on Monday, Marketbeat Ratings reports. The brokerage presently has a $302.00 price objective on the aerospace company’s stock, down from their previous price objective of $311.00. Credit Suisse Group’s price target indicates a potential upside of 16.62% from the stock’s current price. The analysts noted that the move was a valuation call.

Several other equities research analysts have also recently issued reports on the stock. Susquehanna Bancshares began coverage on shares of Northrop Grumman in a research report on Thursday. They set a “neutral” rating and a $273.00 price objective for the company. ValuEngine lowered shares of Northrop Grumman from a “hold” rating to a “sell” rating in a research note on Friday, January 4th. Drexel Hamilton reiterated a “buy” rating and set a $335.00 price target on shares of Northrop Grumman in a research note on Wednesday, December 19th. Cowen cut their price target on shares of Northrop Grumman from $350.00 to $300.00 and set a “market perform” rating on the stock in a research note on Thursday, December 13th. Finally, Barclays cut their price target on shares of Northrop Grumman from $400.00 to $310.00 and set an “overweight” rating on the stock in a research note on Tuesday, December 4th. One research analyst has rated the stock with a sell rating, seven have issued a hold rating, eleven have issued a buy rating and one has given a strong buy rating to the company’s stock. The stock has a consensus rating of “Buy” and an average price target of $339.42.

Shares of Northrop Grumman stock traded up $2.90 during trading on Monday, hitting $258.95. 5,719 shares of the stock were exchanged, compared to its average volume of 1,174,573. The stock has a market cap of $43.78 billion, a P/E ratio of 19.49, a price-to-earnings-growth ratio of 1.19 and a beta of 0.81. Northrop Grumman has a 12-month low of $223.63 and a 12-month high of $360.88. The company has a current ratio of 1.26, a quick ratio of 1.17 and a debt-to-equity ratio of 1.53.

Northrop Grumman (NYSE:NOC) last released its quarterly earnings data on Wednesday, October 24th. The aerospace company reported $6.54 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $4.35 by $2.19. The business had revenue of $8.09 billion during the quarter, compared to analysts’ expectations of $7.99 billion. Northrop Grumman had a net margin of 9.62% and a return on equity of 38.27%. The company’s revenue for the quarter was up 23.1% on a year-over-year basis. During the same period in the previous year, the company earned $3.67 EPS. As a group, sell-side analysts forecast that Northrop Grumman will post 19.06 earnings per share for the current fiscal year.

Northrop Grumman declared that its board has approved a share repurchase plan on Tuesday, December 4th that allows the company to repurchase $3.00 billion in outstanding shares. This repurchase authorization allows the aerospace company to repurchase up to 6.9% of its stock through open market purchases. Stock repurchase plans are usually an indication that the company’s board believes its stock is undervalued.

In other news, VP Shawn N. Purvis sold 1,565 shares of Northrop Grumman stock in a transaction dated Monday, October 29th. The shares were sold at an average price of $273.39, for a total value of $427,855.35. Following the sale, the vice president now owns 4,326 shares of the company’s stock, valued at $1,182,685.14. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, VP Lesley A. Kalan sold 4,158 shares of Northrop Grumman stock in a transaction dated Monday, November 12th. The shares were sold at an average price of $285.58, for a total transaction of $1,187,441.64. Following the completion of the sale, the vice president now directly owns 10,752 shares in the company, valued at approximately $3,070,556.16. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 16,530 shares of company stock worth $4,588,557. 0.62% of the stock is currently owned by company insiders.

Large investors have recently modified their holdings of the company. Paradigm Asset Management Co. LLC boosted its holdings in shares of Northrop Grumman by 15.0% in the third quarter. Paradigm Asset Management Co. LLC now owns 8,050 shares of the aerospace company’s stock valued at $2,555,000 after acquiring an additional 1,050 shares in the last quarter. California Public Employees Retirement System boosted its holdings in Northrop Grumman by 21.9% during the second quarter. California Public Employees Retirement System now owns 482,808 shares of the aerospace company’s stock worth $148,560,000 after buying an additional 86,735 shares in the last quarter. Richard Bernstein Advisors LLC boosted its holdings in Northrop Grumman by 97.0% during the third quarter. Richard Bernstein Advisors LLC now owns 25,591 shares of the aerospace company’s stock worth $8,122,000 after buying an additional 12,603 shares in the last quarter. Virtu Financial LLC boosted its holdings in Northrop Grumman by 165.1% during the third quarter. Virtu Financial LLC now owns 2,471 shares of the aerospace company’s stock worth $784,000 after buying an additional 1,539 shares in the last quarter. Finally, Centaurus Financial Inc. boosted its holdings in Northrop Grumman by 370.3% during the second quarter. Centaurus Financial Inc. now owns 1,980 shares of the aerospace company’s stock worth $609,000 after buying an additional 1,559 shares in the last quarter. 82.79% of the stock is currently owned by institutional investors and hedge funds.

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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Analyst Recommendations for Northrop Grumman (NYSE:NOC)

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