The stock price of Northrop Grumman Corp. (NYSE: NOC) has jumped by 0.39 compared to previous close of 471.61. Despite this, the company has seen a fall of -0.33% in its stock price over the last five trading days. Seeking Alpha reported 2024-05-07 that Northrop Grumman Corporation stock underperformed the S&P 500, returning less than 2% compared to the index’s 22% return. The company reported a $1.56 billion charge on the B-21 program last year, leading to a significant decrease in earnings per share. Q1 2024 earnings showed modest margin expansion, with sales growing 9% and operating income increasing 25%. However, Northrop Grumman stock is still rated as a hold with limited upside.
Is It Worth Investing in Northrop Grumman Corp. (NYSE: NOC) Right Now?
The price-to-earnings ratio for Northrop Grumman Corp. (NYSE: NOC) is 33.12x, which is above its average ratio. Moreover, the 36-month beta value for NOC is 0.36. Analysts have varying opinions on the stock, with 6 analysts rating it as a “buy,” 4 as “overweight,” 9 as “hold,” and 0 as “sell.”
The public float for NOC is 147.56M and currently, short sellers hold a 1.26% of that float. On May 10, 2024, NOC’s average trading volume was 966.58K shares.
NOC’s Market Performance
The stock of Northrop Grumman Corp. (NOC) has seen a -0.33% decrease in the past week, with a 3.39% rise in the past month, and a 4.92% gain in the past quarter. The volatility ratio for the week is 1.26%, and the volatility levels for the past 30 days are at 1.90% for NOC. The simple moving average for the past 20 days is 0.87% for NOC’s stock, with a 3.42% simple moving average for the past 200 days.
Analysts’ Opinion of NOC
Many brokerage firms have already submitted their reports for NOC stocks, with Alembic Global Advisors repeating the rating for NOC by listing it as a “Overweight.” The predicted price for NOC in the upcoming period, according to Alembic Global Advisors is $532 based on the research report published on April 22, 2024 of the current year 2024.
Robert W. Baird, on the other hand, stated in their research note that they expect to see NOC reach a price target of $505. The rating they have provided for NOC stocks is “Neutral” according to the report published on January 16th, 2024.
Deutsche Bank gave a rating of “Hold” to NOC, setting the target price at $473 in the report published on December 15th of the previous year.
NOC Trading at 1.74% from the 50-Day Moving Average
After a stumble in the market that brought NOC to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -4.72% of loss for the given period.
Volatility was left at 1.90%, however, over the last 30 days, the volatility rate increased by 1.26%, as shares surge +3.41% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading +3.16% upper at present.
During the last 5 trading sessions, NOC fell by -0.33%, which changed the moving average for the period of 200-days by +3.55% in comparison to the 20-day moving average, which settled at $470.15. In addition, Northrop Grumman Corp. saw 1.13% in overturn over a single year, with a tendency to cut further gains.
Insider Trading
Reports are indicating that there were more than several insider trading activities at NOC starting from Caylor Mark A, who sale 825 shares at the price of $454.68 back on Feb 21 ’24. After this action, Caylor Mark A now owns 16,432 shares of Northrop Grumman Corp., valued at $375,111 using the latest closing price.
Simpson Kathryn G, the Corp VP & General Counsel of Northrop Grumman Corp., sale 356 shares at $454.68 during a trade that took place back on Feb 21 ’24, which means that Simpson Kathryn G is holding 1,668 shares at $161,866 based on the most recent closing price.
Stock Fundamentals for NOC
Current profitability levels for the company are sitting at:
- 0.07 for the present operating margin
- 0.17 for the gross margin
The net margin for Northrop Grumman Corp. stands at 0.05. The total capital return value is set at 0.08. Equity return is now at value 14.70, with 4.69 for asset returns.
Based on Northrop Grumman Corp. (NOC), the company’s capital structure generated 0.53 points at debt to capital in total, while cash flow to debt ratio is standing at 0.24. The debt to equity ratio resting at 1.15. The interest coverage ratio of the stock is 4.73.
Currently, EBITDA for the company is 4.23 billion with net debt to EBITDA at 3.62. When we switch over and look at the enterprise to sales, we see a ratio of 2.12. The receivables turnover for the company is 4.19for trailing twelve months and the total asset turnover is 0.84. The liquidity ratio also appears to be rather interesting for investors as it stands at 1.11.
Conclusion
To wrap up, the performance of Northrop Grumman Corp. (NOC) has been better in recent times. The stock has received a mixed of “buy” and “hold” ratings from analysts. It is worth mentioning that the stock is currently trading in close proximity to its 50-day moving average and its 52-week high.
