Zacks Investment Research upgraded shares of General Dynamics (NYSE:GD) from a sell rating to a hold rating in a research report report published on Thursday.
According to Zacks, “Being one of the only two contractors in the world equipped to build nuclear-powered submarines, General Dynamics’ diverse portfolio of products and services along with its wide customer base provides it with an opportunity to generate solid revenues from different sources. The recent budgetary amendments in the country have been in favor of the company’s business line. 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. Moreover, the company underperformed the broader industry in last one year. Further, the company’s dependence on international sales for a major portion of its revenues exposes it to the risk of currency fluctuations.”
Other research analysts have also recently issued research reports about the stock. Jefferies Group reiterated a buy rating and issued a $236.00 target price on shares of General Dynamics in a research note on Thursday, October 26th. Stifel Nicolaus reiterated a hold rating and issued a $220.00 target price on shares of General Dynamics in a research note on Tuesday, January 9th. Cowen reiterated a buy rating and issued a $230.00 target price on shares of General Dynamics in a research note on Thursday, October 26th. JPMorgan Chase & Co. cut shares of General Dynamics from a neutral rating to an underweight rating and cut their target price for the company from $225.00 to $215.00 in a research note on Tuesday, December 12th. Finally, ValuEngine cut shares of General Dynamics from a buy rating to a hold rating in a research note on Thursday, November 30th. Three equities research analysts have rated the stock with a sell rating, five have given a hold rating and nine have given a buy rating to the company. The company currently has an average rating of Hold and a consensus target price of $218.92.
General Dynamics (NYSE:GD) last posted its earnings results on Wednesday, October 25th. The aerospace company reported $2.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.43 by $0.09. General Dynamics had a net margin of 9.94% and a return on equity of 27.98%. The company had revenue of $7.58 billion during the quarter, compared to analysts’ expectations of $7.94 billion. During the same quarter in the previous year, the company posted $2.36 earnings per share. General Dynamics’s quarterly revenue was down 1.0% compared to the same quarter last year. analysts anticipate that General Dynamics will post 9.8 earnings per share for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Friday, February 9th. Investors of record on Friday, January 19th will be given a $0.84 dividend. This represents a $3.36 annualized dividend and a yield of 1.60%. The ex-dividend date of this dividend is Thursday, January 18th. General Dynamics’s dividend payout ratio (DPR) is presently 33.37%.
In other General Dynamics news, insider John Patrick Casey sold 34,945 shares of General Dynamics stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $201.38, for a total transaction of $7,037,224.10. Following the completion of the sale, the insider now owns 144,378 shares of the company’s stock, valued at approximately $29,074,841.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, VP Gregory S. Gallopoulos sold 78,370 shares of General Dynamics stock in a transaction on Monday, November 6th. The stock was sold at an average price of $202.93, for a total transaction of $15,903,624.10. The disclosure for this sale can be found here. Insiders own 6.70% of the company’s stock.
A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. First Command Financial Services Inc. grew its holdings in General Dynamics by 87.0% during the 4th quarter. First Command Financial Services Inc. now owns 1,350 shares of the aerospace company’s stock worth $275,000 after acquiring an additional 628 shares during the period. Country Club Trust Company n.a. acquired a new stake in General Dynamics during the 4th quarter worth $448,000. Acropolis Investment Management LLC grew its holdings in General Dynamics by 21.7% during the 4th quarter. Acropolis Investment Management LLC now owns 5,980 shares of the aerospace company’s stock worth $1,217,000 after acquiring an additional 1,066 shares during the period. Sit Investment Associates Inc. grew its holdings in General Dynamics by 170.0% during the 4th quarter. Sit Investment Associates Inc. now owns 953 shares of the aerospace company’s stock worth $194,000 after acquiring an additional 600 shares during the period. Finally, Oak Point Wealth Management acquired a new stake in General Dynamics during the 4th quarter worth $865,000. 86.76% of the stock is owned by hedge funds and other institutional investors.
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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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