General Dynamics Co. (NYSE:GD) Position Lowered by Capital Research Global Investors
Capital Research Global Investors trimmed its position in General Dynamics Co. (NYSE:GD) by 11.2% in the fourth quarter, according to its most recent disclosure with the SEC. The institutional investor owned 23,304,219 shares of the aerospace company’s stock after selling 2,925,220 shares during the period. General Dynamics accounts for about 1.2% of Capital Research Global Investors’ investment portfolio, making the stock its 16th biggest holding. Capital Research Global Investors owned about 8.05% of General Dynamics worth $4,109,699,000 at the end of the most recent reporting period.
A number of other institutional investors have also recently made changes to their positions in GD. Equitable Holdings Inc. acquired a new position in General Dynamics during the fourth quarter worth $851,000. HM Payson & Co. increased its stake in General Dynamics by 5.8% in the 4th quarter. HM Payson & Co. now owns 240,829 shares of the aerospace company’s stock worth $42,470,000 after buying an additional 13,176 shares during the period. Profund Advisors LLC lifted its holdings in General Dynamics by 17.4% during the 4th quarter. Profund Advisors LLC now owns 4,657 shares of the aerospace company’s stock valued at $821,000 after buying an additional 690 shares in the last quarter. Intact Investment Management Inc. boosted its position in General Dynamics by 7.9% in the 4th quarter. Intact Investment Management Inc. now owns 30,100 shares of the aerospace company’s stock valued at $5,307,000 after buying an additional 2,200 shares during the period. Finally, Alliancebernstein L.P. boosted its position in General Dynamics by 5.0% in the 4th quarter. Alliancebernstein L.P. now owns 409,837 shares of the aerospace company’s stock valued at $72,275,000 after buying an additional 19,619 shares during the period. 86.39% of the stock is owned by hedge funds and other institutional investors.
A number of equities analysts have recently commented on the stock. Morgan Stanley reduced their target price on shares of General Dynamics from $175.00 to $146.00 and set an “underweight” rating on the stock in a research report on Tuesday. Cowen reaffirmed a “buy” rating and issued a $215.00 price objective on shares of General Dynamics in a research note on Tuesday, December 17th. TheStreet cut shares of General Dynamics from a “b” rating to a “c+” rating in a research report on Friday, March 13th. Barclays reissued a “buy” rating and set a $220.00 target price on shares of General Dynamics in a research note on Thursday, January 23rd. Finally, JPMorgan Chase & Co. upgraded General Dynamics from a “neutral” rating to an “overweight” rating and increased their target price for the company from $210.00 to $225.00 in a report on Thursday, February 6th. One research analyst has rated the stock with a sell rating, two have issued a hold rating and nine have assigned a buy rating to the company’s stock. The stock currently has a consensus rating of “Buy” and an average target price of $203.36.
General Dynamics (NYSE:GD) last announced its quarterly earnings data on Wednesday, January 29th. The aerospace company reported $3.51 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $3.44 by $0.07. General Dynamics had a net margin of 8.85% and a return on equity of 26.70%. The business had revenue of $10.77 billion during the quarter, compared to the consensus estimate of $10.64 billion. During the same quarter last year, the firm earned $3.07 earnings per share. The firm’s quarterly revenue was up 3.8% compared to the same quarter last year. Research analysts forecast that General Dynamics Co. will post 12.56 earnings per share for the current year.
The business also recently announced a quarterly dividend, which will be paid on Friday, May 8th. Shareholders of record on Friday, April 10th will be given a dividend of $1.10 per share. This represents a $4.40 annualized dividend and a yield of 3.31%. The ex-dividend date is Wednesday, April 8th. This is a boost from General Dynamics’s previous quarterly dividend of $1.02. General Dynamics’s dividend payout ratio (DPR) is 34.06%.
General Dynamics declared that its board has initiated a stock repurchase plan on Wednesday, March 4th that authorizes the company to repurchase 10,000,000 outstanding shares. This repurchase authorization authorizes the aerospace company to buy shares of its stock through open market purchases. Stock repurchase plans are typically a sign that the company’s board of directors believes its shares are undervalued.
About General Dynamics
General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates in five segments: Aerospace, Combat Systems, Information Technology, Mission Systems, and Marine Systems. The Aerospace segment designs, manufactures, and supports business-jet aircraft; and offers business-aviation services, including maintenance, fixed-base operation, government fleet, aircraft management, charter, and staffing services, as well as integrated aviation solutions.
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