General Dynamics (GD) Shares Down 1.4% on Analyst Downgrade

General Dynamics Co. (NYSE:GD)’s share price dropped 1.4% on Thursday after Argus lowered their price target on the stock from $250.00 to $200.00. Argus currently has a buy rating on the stock. General Dynamics traded as low as $172.86 and last traded at $170.73. Approximately 120,738 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 1,512,263 shares. The stock had previously closed at $173.24.

A number of other research firms have also recently weighed in on GD. Cowen reaffirmed a “buy” rating and issued a $253.00 price target on shares of General Dynamics in a report on Monday, October 15th. Credit Suisse Group reduced their price target on General Dynamics from $229.00 to $216.00 and set an “outperform” rating for the company in a report on Thursday. Bank of America set a $275.00 price target on General Dynamics and gave the stock a “buy” rating in a report on Tuesday, July 31st. Robert W. Baird reduced their price target on General Dynamics from $243.00 to $222.00 and set an “outperform” rating for the company in a report on Thursday. Finally, Wells Fargo & Co reduced their price target on General Dynamics from $250.00 to $210.00 and set an “outperform” rating for the company in a report on Thursday. Three equities research analysts have rated the stock with a sell rating, five have issued a hold rating and eleven have given a buy rating to the company. General Dynamics currently has a consensus rating of “Hold” and an average target price of $231.00.

In other news, insider John Patrick Casey sold 22,500 shares of the company’s stock in a transaction that occurred on Monday, October 15th. The stock was sold at an average price of $193.28, for a total value of $4,348,800.00. Following the completion of the sale, the insider now directly owns 118,555 shares in the company, valued at $22,914,310.40. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, insider S. Daniel Johnson sold 77,810 shares of the company’s stock in a transaction that occurred on Friday, September 14th. The shares were sold at an average price of $199.85, for a total value of $15,550,328.50. Following the completion of the sale, the insider now owns 99,333 shares of the company’s stock, valued at $19,851,700.05. The disclosure for this sale can be found here. 6.70% of the stock is currently owned by insiders.



Several hedge funds have recently bought and sold shares of the company. Newport Trust Co grew its position in shares of General Dynamics by 0.3% in the second quarter. Newport Trust Co now owns 21,068,046 shares of the aerospace company’s stock valued at $3,927,294,000 after purchasing an additional 66,593 shares in the last quarter. BlackRock Inc. grew its position in shares of General Dynamics by 1.1% in the second quarter. BlackRock Inc. now owns 17,024,342 shares of the aerospace company’s stock valued at $3,173,507,000 after purchasing an additional 191,353 shares in the last quarter. Caisse DE Depot ET Placement DU Quebec grew its position in shares of General Dynamics by 29.0% in the second quarter. Caisse DE Depot ET Placement DU Quebec now owns 2,243,297 shares of the aerospace company’s stock valued at $418,173,000 after purchasing an additional 504,326 shares in the last quarter. Bank of Montreal Can grew its position in shares of General Dynamics by 5.0% in the third quarter. Bank of Montreal Can now owns 1,457,366 shares of the aerospace company’s stock valued at $298,353,000 after purchasing an additional 68,784 shares in the last quarter. Finally, Iridian Asset Management LLC CT grew its position in shares of General Dynamics by 1.6% in the second quarter. Iridian Asset Management LLC CT now owns 1,324,996 shares of the aerospace company’s stock valued at $246,993,000 after purchasing an additional 20,314 shares in the last quarter. Institutional investors and hedge funds own 85.47% of the company’s stock.

The company has a debt-to-equity ratio of 0.89, a current ratio of 1.27 and a quick ratio of 0.84. The stock has a market cap of $50.52 billion, a PE ratio of 17.07, a P/E/G ratio of 1.37 and a beta of 0.78.

General Dynamics (NYSE:GD) last posted its quarterly earnings results on Wednesday, October 24th. The aerospace company reported $2.89 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.76 by $0.13. The business had revenue of $9.09 billion during the quarter, compared to analyst estimates of $9.41 billion. General Dynamics had a return on equity of 27.22% and a net margin of 9.01%. The business’s revenue was up 20.0% compared to the same quarter last year. During the same period in the prior year, the business earned $2.52 earnings per share. Analysts forecast that General Dynamics Co. will post 11.25 EPS for the current fiscal year.

The business also recently declared a quarterly dividend, which will be paid on Friday, November 9th. Stockholders of record on Friday, October 5th will be given a $0.93 dividend. The ex-dividend date of this dividend is Thursday, October 4th. This represents a $3.72 dividend on an annualized basis and a dividend yield of 2.19%. General Dynamics’s dividend payout ratio (DPR) is presently 37.39%.

General Dynamics Company Profile (NYSE:GD)

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four business groups: Aerospace; Combat Systems; Information Systems and Technology; and Marine Systems. The Aerospace group designs, develops, manufactures, service and supports business-jet aircraft; and provides aircraft services, such as maintenance, aircraft management, charter, fixed-base operational, and staffing services.

Further Reading: Dollar Cost Averaging

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