Zacks Investment Research downgraded shares of General Dynamics (NYSE:GD) from a buy rating to a hold rating in a research note released on Monday, March 12th.
According to Zacks, “General Dynamics remains one of the only two contractors in the world equipped to build nuclear-powered submarines and its diverse portfolio of products and services. Moreover its wide customer base provides it with an opportunity to generate solid revenues from different sources. The company will likely see solid growth momentum, following the introduction of the G600 in 2018. General Dynamics is committed to R&D activities that facilitate the introduction of new products and first-to-market enhancements. However, General Dynamics operates in a highly competitive market and has to rely on other companies to provide materials, components and subsystems for its products. The company’s dependence on international sales for a major portion of its revenues exposes it to the risk of currency fluctuations and other geo-political risks. The company's shares also underperformed its broader industry in the last one year.”
Several other brokerages have also recently issued reports on GD. Sanford C. Bernstein reiterated a market perform rating and issued a $237.00 price target (up from $218.00) on shares of General Dynamics in a research note on Thursday, January 25th. Bank of America upped their target price on General Dynamics from $245.00 to $260.00 and gave the stock a buy rating in a research note on Thursday, January 25th. Buckingham Research restated a buy rating and set a $260.00 target price (up from $230.00) on shares of General Dynamics in a research note on Tuesday, January 30th. Royal Bank of Canada upped their target price on General Dynamics to $267.00 and gave the stock an outperform rating in a research note on Tuesday, February 20th. Finally, Argus upgraded General Dynamics to a buy rating and upped their target price for the stock from $230.00 to $250.00 in a research note on Tuesday, January 30th. Three analysts have rated the stock with a sell rating, five have given a hold rating and thirteen have given a buy rating to the company’s stock. The company currently has an average rating of Hold and a consensus target price of $235.88.
Shares of GD stock traded up $0.57 during trading hours on Monday, hitting $223.31. The stock had a trading volume of 300,699 shares, compared to its average volume of 1,701,251. General Dynamics has a 12 month low of $183.72 and a 12 month high of $230.00. The company has a market capitalization of $66,138.99, a PE ratio of 23.30, a PEG ratio of 2.36 and a beta of 0.83. The company has a current ratio of 1.40, a quick ratio of 0.99 and a debt-to-equity ratio of 0.35.
General Dynamics (NYSE:GD) last issued its quarterly earnings data on Wednesday, January 24th. The aerospace company reported $2.50 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.37 by $0.13. The company had revenue of $8.28 billion during the quarter, compared to analysts’ expectations of $8.40 billion. General Dynamics had a return on equity of 27.22% and a net margin of 9.40%. The business’s revenue was up 8.1% on a year-over-year basis. During the same quarter in the previous year, the company posted $1.89 earnings per share. analysts forecast that General Dynamics will post 11.09 earnings per share for the current year.
The company also recently declared a quarterly dividend, which will be paid on Friday, May 11th. Shareholders of record on Friday, April 13th will be given a dividend of $0.93 per share. The ex-dividend date is Thursday, April 12th. This represents a $3.72 dividend on an annualized basis and a yield of 1.67%. This is a boost from General Dynamics’s previous quarterly dividend of $0.84. General Dynamics’s dividend payout ratio is 35.18%.
In related news, insider S. Daniel Johnson sold 3,933 shares of the firm’s stock in a transaction dated Friday, March 9th. The shares were sold at an average price of $228.79, for a total value of $899,831.07. Following the transaction, the insider now owns 66,363 shares of the company’s stock, valued at approximately $15,183,190.77. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, VP Gary L. Whited sold 5,977 shares of the stock in a transaction dated Tuesday, March 6th. The shares were sold at an average price of $224.52, for a total transaction of $1,341,956.04. The disclosure for this sale can be found here. Insiders have sold 30,357 shares of company stock worth $6,715,463 in the last ninety days. Insiders own 6.70% of the company’s stock.
Large investors have recently bought and sold shares of the business. Highlander Capital Management LLC increased its stake in General Dynamics by 101.4% in the 4th quarter. Highlander Capital Management LLC now owns 596 shares of the aerospace company’s stock valued at $121,000 after buying an additional 300 shares during the last quarter. Resources Investment Advisors Inc. increased its stake in shares of General Dynamics by 92.3% during the 4th quarter. Resources Investment Advisors Inc. now owns 625 shares of the aerospace company’s stock worth $127,000 after purchasing an additional 300 shares during the last quarter. We Are One Seven LLC purchased a new stake in shares of General Dynamics during the 4th quarter worth approximately $128,000. NuWave Investment Management LLC purchased a new stake in shares of General Dynamics during the 4th quarter worth approximately $130,000. Finally, Prime Capital Investment Advisors LLC purchased a new stake in shares of General Dynamics during the 4th quarter worth approximately $134,000. Hedge funds and other institutional investors own 86.06% of the company’s stock.
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General Dynamics Company Profile
General Dynamics Corporation is a global aerospace and defense company. The Company offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; information technology (IT) services and C4ISR (command, control, communications, computers, intelligence, surveillance and reconnaissance) solutions, and shipbuilding and ship repair.
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