General Dynamics Corp. (GD) Downgraded by Zacks Investment Research to Hold
According to Zacks, “General Dynamics recently won a contract worth $125.6 million, to offer program management and system support for Rescue 21, the U.S. Coast Guard's advanced communications system. Among other notable deals, the $430 million deal that the company won to support the 2020 Census Questionnaire Assistance (CQA) program and the $105.5 million deal for Phase 2 of the Sea Dragon Submarines Development program buoy optimism. Going ahead, General Dynamics expects to see solid growth momentum post 2017, following the introduction of the G500 in 2018, major revenue recognition from Combat Systems’ huge backlog and the Ohio-class Replacement (ORP) submarine program. However, competition and possibility of defense budget cuts remain major headwinds. Also, 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.”
GD has been the subject of several other reports. Citigroup Inc. lifted their price target on shares of General Dynamics Corp. from $162.00 to $185.00 and gave the company a buy rating in a report on Tuesday, September 6th. Deutsche Bank AG reissued a hold rating on shares of General Dynamics Corp. in a report on Friday, September 23rd. Robert W. Baird began coverage on shares of General Dynamics Corp. in a report on Thursday, October 6th. They set an outperform rating and a $181.00 price target for the company. Sanford C. Bernstein raised shares of General Dynamics Corp. from a market perform rating to an outperform rating and set a $180.00 target price for the company in a research note on Wednesday, August 10th. They noted that the move was a valuation call. Finally, Jefferies Group reaffirmed a buy rating and issued a $167.00 target price on shares of General Dynamics Corp. in a research note on Thursday, July 28th. Three research analysts have rated the stock with a hold rating, fifteen have assigned a buy rating and one has assigned a strong buy rating to the company’s stock. The company presently has a consensus rating of Buy and a consensus target price of $159.66.
Shares of General Dynamics Corp. (NYSE:GD) traded up 0.6386% during midday trading on Monday, hitting $151.4409. 128,079 shares of the company traded hands. General Dynamics Corp. has a 12-month low of $121.61 and a 12-month high of $156.97. The stock’s 50-day moving average is $152.73 and its 200 day moving average is $144.86. The stock has a market capitalization of $46.11 billion, a P/E ratio of 16.1056 and a beta of 0.76.
General Dynamics Corp. (NYSE:GD) last announced its quarterly earnings results on Wednesday, July 27th. The company reported $2.44 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.31 by $0.13. General Dynamics Corp. had a net margin of 9.53% and a return on equity of 27.74%. The firm earned $7.66 billion during the quarter, compared to the consensus estimate of $7.88 billion. During the same period last year, the firm posted $2.27 EPS. The firm’s quarterly revenue was down 2.8% on a year-over-year basis. On average, analysts expect that General Dynamics Corp. will post $9.73 earnings per share for the current year.
The business also recently declared a quarterly dividend, which will be paid on Thursday, November 10th. Stockholders of record on Friday, October 7th will be issued a $0.76 dividend. This represents a $3.04 annualized dividend and a dividend yield of 2.02%. The ex-dividend date of this dividend is Wednesday, October 5th. General Dynamics Corp.’s dividend payout ratio (DPR) is presently 32.27%.
In other news, VP Kimberly A. Kuryea sold 4,117 shares of the company’s stock in a transaction that occurred on Tuesday, September 6th. The shares were sold at an average price of $154.56, for a total value of $636,323.52. Following the completion of the transaction, the vice president now owns 36,412 shares in the company, valued at $5,627,838.72. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Robert W. Helm sold 87,790 shares of the company’s stock in a transaction that occurred on Monday, September 12th. The shares were sold at an average price of $150.91, for a total transaction of $13,248,388.90. Following the completion of the transaction, the insider now owns 157,176 shares of the company’s stock, valued at approximately $23,719,430.16. The disclosure for this sale can be found here. 6.80% of the stock is currently owned by insiders.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Central Bank & Trust Co. raised its stake in shares of General Dynamics Corp. by 6.7% in the third quarter. Central Bank & Trust Co. now owns 651 shares of the company’s stock worth $101,000 after buying an additional 41 shares in the last quarter. WFG Advisors LP raised its stake in shares of General Dynamics Corp. by 0.3% in the second quarter. WFG Advisors LP now owns 753 shares of the company’s stock worth $105,000 after buying an additional 2 shares in the last quarter. Signaturefd LLC raised its stake in shares of General Dynamics Corp. by 5.7% in the second quarter. Signaturefd LLC now owns 818 shares of the company’s stock worth $114,000 after buying an additional 44 shares in the last quarter. Compagnie Lombard Odier SCmA raised its stake in shares of General Dynamics Corp. by 820.0% in the second quarter. Compagnie Lombard Odier SCmA now owns 920 shares of the company’s stock worth $128,000 after buying an additional 820 shares in the last quarter. Finally, Bellwether Investment Group LLC acquired a new stake in shares of General Dynamics Corp. during the second quarter worth approximately $136,000. Institutional investors own 87.68% of the company’s stock.
General Dynamics Corp. Company Profile
General Dynamics Corporation is an aerospace and defense company that offers a portfolio of products and services in business aviation; combat vehicles, weapons systems and munitions; command, control, communications, computers, intelligence, surveillance and reconnaissance (C4ISR) solutions and information technology (IT) services, and shipbuilding.
Receive News & Stock Ratings for General Dynamics Corp. Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for General Dynamics Corp. and related stocks with our FREE daily email newsletter.