Zacks Investment Research upgraded shares of General Dynamics Corp. (NYSE:GD) from a hold rating to a buy rating in a research note released on Wednesday. Zacks Investment Research currently has $191.00 price target on the stock.
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. Its diverse customer base provides it with an opportunity to generate revenues from different sources, which have helped the company to counter the volatility in domestic defense spending. The company’s focus on research and development 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.”
A number of other equities research analysts also recently issued reports on the company. Jefferies Group reissued a buy rating and set a $175.00 price target (up previously from $167.00) on shares of General Dynamics Corp. in a research report on Friday, October 28th. Citigroup Inc. boosted their price target on General Dynamics Corp. from $162.00 to $185.00 and gave the company a buy rating in a research report on Tuesday, September 6th. Deutsche Bank AG reissued a hold rating on shares of General Dynamics Corp. in a research report on Tuesday, October 18th. Vetr downgraded General Dynamics Corp. from a strong-buy rating to a buy rating and set a $168.30 target price for the company. in a research report on Monday, November 7th. Finally, Robert W. Baird started coverage on General Dynamics Corp. in a research report on Thursday, October 6th. They issued an outperform rating and a $181.00 target price for the company. Two equities research analysts have rated the stock with a hold rating and sixteen have issued a buy rating to the company. The company currently has an average rating of Buy and a consensus target price of $161.37.
Shares of General Dynamics Corp. (NYSE:GD) opened at 172.08 on Wednesday. General Dynamics Corp. has a 52-week low of $121.61 and a 52-week high of $172.23. The firm has a 50-day moving average price of $156.87 and a 200-day moving average price of $149.06. The firm has a market cap of $52.30 billion, a price-to-earnings ratio of 18.42 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 EPS for the quarter, beating the Thomson Reuters’ consensus estimate of $2.38 by $0.10. The firm earned $7.73 billion during the quarter, compared to analyst estimates of $7.91 billion. General Dynamics Corp. had a return on equity of 27.68% and a net margin of 9.45%. The business’s quarterly revenue was down 3.3% compared to the same quarter last year. During the same period in the prior year, the firm posted $2.28 earnings per share. Analysts predict that General Dynamics Corp. will post $9.77 EPS for the current fiscal year.
In related news, VP Kimberly A. Kuryea sold 4,117 shares of the stock in a transaction that occurred on Tuesday, September 6th. The stock was 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 directly owns 36,412 shares of the company’s stock, valued at approximately $5,627,838.72. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Robert W. Helm sold 149,910 shares of the stock in a transaction that occurred on Thursday, September 8th. The stock was sold at an average price of $152.43, for a total value of $22,850,781.30. Following the completion of the transaction, the insider now directly owns 108,119 shares of the company’s stock, valued at $16,480,579.17. The disclosure for this sale can be found here. Insiders own 6.80% of the company’s stock.
A number of institutional investors have recently modified their holdings of GD. Wells Fargo & Company MN raised its position in shares of General Dynamics Corp. by 27.6% in the third quarter. Wells Fargo & Company MN now owns 7,270,811 shares of the company’s stock worth $1,128,140,000 after buying an additional 1,573,092 shares during the period. Iridian Asset Management LLC CT acquired a new position in shares of General Dynamics Corp. during the second quarter worth about $213,226,000. Bank of Montreal Can acquired a new position in shares of General Dynamics Corp. during the second quarter worth about $203,640,000. FMR LLC raised its position in shares of General Dynamics Corp. by 19.1% in the second quarter. FMR LLC now owns 7,944,339 shares of the company’s stock worth $1,106,170,000 after buying an additional 1,274,336 shares during the period. Finally, Boston Partners raised its position in shares of General Dynamics Corp. by 34.3% in the second quarter. Boston Partners now owns 4,303,966 shares of the company’s stock worth $599,284,000 after buying an additional 1,099,224 shares during the period. 87.01% of the stock is owned by institutional investors and hedge funds.
About General Dynamics Corp.
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.