Zacks Investment Research Downgrades General Dynamics Corp. (GD) to Hold
General Dynamics Corp. (NYSE:GD) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued to investors on Monday.
According to Zacks, “General Dynamics is one of the only two contractors in the world equipped to build nuclear-powered submarines. Its revenues are derived from a broad portfolio of products and services that help to keep the overall growth momentum steady. The company’s focus on research and development, along with an attractive product mix, will help drive continued growth in the quarters ahead. However, the company’s defense business will likely experience top-line pressure in case of any further defense budget cut. Moreover, the company operates in a highly competitive market, which may hurt its performance going forward. Economic and political changes, dependence on international sales are added concerns.”
Several other research firms have also issued reports on GD. Vetr lowered shares of General Dynamics Corp. from a “strong-buy” rating to a “buy” rating and set a $168.30 target price for the company. in a report on Monday, October 24th. Robert W. Baird initiated coverage on shares of General Dynamics Corp. in a report on Thursday, October 6th. They set an “outperform” rating and a $181.00 target price for the company. Deutsche Bank AG reissued a “hold” rating on shares of General Dynamics Corp. in a research report on Tuesday, October 18th. Jefferies Group reissued a “buy” rating and set a $167.00 price target on shares of General Dynamics Corp. in a research report on Thursday, July 28th. Finally, Citigroup Inc. raised their price target on shares of General Dynamics Corp. from $162.00 to $185.00 and gave the company a “buy” rating in a research report on Tuesday, September 6th. Three equities research analysts have rated the stock with a hold rating and fifteen have assigned a buy rating to the company. General Dynamics Corp. presently has an average rating of “Buy” and a consensus price target of $160.02.
Shares of General Dynamics Corp. (NYSE:GD) opened at 168.02 on Monday. General Dynamics Corp. has a 52-week low of $121.61 and a 52-week high of $170.82. The firm’s 50 day moving average price is $153.30 and its 200 day moving average price is $147.30. The stock has a market cap of $51.07 billion, a P/E ratio of 17.98 and a beta of 0.69.
General Dynamics Corp. (NYSE:GD) last released its earnings results on Wednesday, October 26th. The company reported $2.48 earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of $2.38 by $0.10. General Dynamics Corp. had a net margin of 9.45% and a return on equity of 27.68%. The firm earned $7.73 billion during the quarter, compared to analyst estimates of $7.91 billion. During the same period last year, the business earned $2.28 earnings per share. The business’s revenue was down 3.3% on a year-over-year basis. On average, analysts expect that General Dynamics Corp. will post $9.77 EPS for the current year.
In other General Dynamics Corp. news, insider Robert W. Helm sold 149,910 shares of the business’s stock in a transaction on Thursday, September 8th. The shares were sold at an average price of $152.43, for a total value of $22,850,781.30. Following the sale, the insider now owns 108,119 shares in the company, valued at approximately $16,480,579.17. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, VP Kimberly A. Kuryea sold 4,117 shares of the business’s stock in a transaction on Tuesday, September 6th. The stock was sold at an average price of $154.56, for a total transaction of $636,323.52. Following the completion of the sale, the vice president now owns 36,412 shares in the company, valued at approximately $5,627,838.72. The disclosure for this sale can be found here. Corporate insiders own 6.80% of the company’s stock.
Hedge funds have recently made changes to their positions in the company. Credit Suisse AG boosted its stake in shares of General Dynamics Corp. by 72.0% in the third quarter. Credit Suisse AG now owns 785,715 shares of the company’s stock valued at $121,913,000 after buying an additional 328,900 shares during the last quarter. Ameritas Investment Partners Inc. boosted its stake in shares of General Dynamics Corp. by 32.4% in the third quarter. Ameritas Investment Partners Inc. now owns 9,317 shares of the company’s stock valued at $1,444,000 after buying an additional 2,280 shares during the last quarter. NS Partners Ltd bought a new stake in shares of General Dynamics Corp. during the third quarter valued at approximately $217,000. KCM Investment Advisors LLC boosted its stake in shares of General Dynamics Corp. by 3.7% in the third quarter. KCM Investment Advisors LLC now owns 16,795 shares of the company’s stock valued at $2,606,000 after buying an additional 599 shares during the last quarter. Finally, Choate Investment Advisors boosted its stake in shares of General Dynamics Corp. by 24.5% in the third quarter. Choate Investment Advisors now owns 7,618 shares of the company’s stock valued at $1,182,000 after buying an additional 1,500 shares during the last quarter. Institutional investors and hedge funds own 88.98% 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.
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