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.”
A number of other research analysts have also issued reports on GD. Jefferies Group reiterated a buy rating on shares of General Dynamics Corp. in a report on Sunday, July 3rd. Argus raised their price target on shares of General Dynamics Corp. from $160.00 to $165.00 and gave the stock a buy rating in a report on Tuesday, August 2nd. Sanford C. Bernstein upgraded shares of General Dynamics Corp. from a market perform rating to an outperform rating and set a $180.00 price target for the company in a report on Wednesday, August 10th. They noted that the move was a valuation call. Citigroup Inc. raised their price target on shares of General Dynamics Corp. from $162.00 to $185.00 and gave the stock a buy rating in a report on Tuesday, September 6th. Finally, Deutsche Bank AG restated a hold rating on shares of General Dynamics Corp. in a report on Friday, September 23rd. Three analysts have rated the stock with a hold rating, fifteen have issued a buy rating and one has given a strong buy rating to the stock. The stock has an average rating of Buy and an average price target of $159.66.
Shares of General Dynamics Corp. (NYSE:GD) traded up 0.6386% during mid-day trading on Monday, hitting $151.4409. 128,079 shares of the stock were exchanged. 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. has a 12-month low of $121.61 and a 12-month high of $156.97. The stock’s 50 day moving average price is $152.73 and its 200-day moving average price is $144.86.
General Dynamics Corp. (NYSE:GD) last issued its quarterly earnings data on Wednesday, July 27th. The company reported $2.44 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.31 by $0.13. The business earned $7.66 billion during the quarter, compared to analyst estimates of $7.88 billion. General Dynamics Corp. had a net margin of 9.53% and a return on equity of 27.74%. The firm’s quarterly revenue was down 2.8% on a year-over-year basis. During the same quarter last year, the business earned $2.27 EPS. On average, equities research analysts expect that General Dynamics Corp. will post $9.73 EPS for the current fiscal year.
The business also recently disclosed a quarterly dividend, which will be paid on Thursday, November 10th. Shareholders of record on Friday, October 7th will be paid a dividend of $0.76 per share. This represents a $3.04 annualized dividend and a yield of 2.02%. The ex-dividend date is Wednesday, October 5th. General Dynamics Corp.’s dividend payout ratio (DPR) is presently 32.27%.
In other General Dynamics Corp. news, insider John Patrick Casey sold 57,490 shares of the firm’s stock in a transaction on Thursday, August 4th. The stock was sold at an average price of $146.96, for a total transaction of $8,448,730.40. Following the transaction, the insider now directly owns 165,118 shares in the company, valued at approximately $24,265,741.28. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider S. Daniel Johnson sold 33,650 shares of the firm’s stock in a transaction on Wednesday, August 3rd. The shares were sold at an average price of $147.91, for a total value of $4,977,171.50. Following the transaction, the insider now owns 107,922 shares in the company, valued at $15,962,743.02. The disclosure for this sale can be found here. Company insiders own 6.80% of the company’s stock.
A number of institutional investors have recently modified their holdings of the stock. RS Investment Management Co. LLC acquired a new stake in General Dynamics Corp. during the second quarter worth approximately $23,540,000. Edgar Lomax Co. VA boosted its stake in General Dynamics Corp. by 10.6% in the first quarter. Edgar Lomax Co. VA now owns 269,200 shares of the company’s stock worth $35,365,000 after buying an additional 25,900 shares during the last quarter. Nisa Investment Advisors LLC boosted its stake in General Dynamics Corp. by 2.8% in the second quarter. Nisa Investment Advisors LLC now owns 120,102 shares of the company’s stock worth $16,723,000 after buying an additional 3,230 shares during the last quarter. AMP Capital Investors Ltd boosted its stake in General Dynamics Corp. by 2.2% in the first quarter. AMP Capital Investors Ltd now owns 192,930 shares of the company’s stock worth $25,415,000 after buying an additional 4,170 shares during the last quarter. Finally, Schmidt P J Investment Management Inc. boosted its stake in General Dynamics Corp. by 2.9% in the second quarter. Schmidt P J Investment Management Inc. now owns 8,138 shares of the company’s stock worth $1,133,000 after buying an additional 233 shares during the last quarter. Institutional investors and hedge funds 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.
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