Here’s Why Northrop Grumman’s Decline on Thursday Might Be an Overreaction

While there was a slight ebb of hedge fund investment in Northrop Grumman Corporation (NYSE:NOC), the smart money was still bullish on the stock at the end of the second quarter. There were 32 hedge funds long Northrop Grumman at the end of June, down by three from the end of March, while the total value of their holdings decreased to $1.87 billion from $1.94 billion. However, this still represented 6.10% of the company at the end of June. The largest investor in Northrop Grumman was First Eagle Investment Management, which owned about 5.89 million shares of the defense firm, while AQR Capital Management, led by Cliff Asness, owned 2.47 million shares.

Analysts agree with hedge funds. While there is one analyst who has a ‘Sell’ rating on the stock, seven analysts have ‘Hold’ ratings, five analysts have ‘Buy’ ratings, and one analyst has a ‘Strong Buy’ rating. The consensus price target on the stock is at $171.25 per share, which represents an upside of around 3%.

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