Zacks Investment Research upgraded shares of General Dynamics (NYSE:GD) from a hold rating to a buy rating in a research report sent to investors on Thursday morning, Zacks.com reports. The firm currently has $188.00 price target on the aerospace company’s stock.
According to Zacks, “General Dynamics company boasts a strong position in the U.S. defense space and overseas. General Dynamics continues to witness strong order growth, procuring some pivotal contracts from the U.S. government and also from its overseas clients. Apart from solid demand for its varied defense products leading to organic growth, a notable acquisition strategy also adds to General Dynamics’ inorganic growth. Notably, General Dynamics acquired CSRA Inc. in April 2018 for $9.7 billion, and will now provide high-tech IT solutions to the government IT market. However, the company operates in a highly competitive market. The company also incurs high interest expenses. General Dynamics' shares also underperformed its industry in the past twelve months.”
Other analysts have also recently issued reports about the company. Cowen reissued a buy rating and set a $202.00 target price on shares of General Dynamics in a research note on Wednesday, April 24th. JPMorgan Chase & Co. raised General Dynamics from an underweight rating to a neutral rating and increased their target price for the stock from $188.00 to $200.00 in a research note on Thursday, April 25th. They noted that the move was a valuation call. Drexel Hamilton reissued a buy rating and set a $230.00 target price on shares of General Dynamics in a research note on Monday, February 4th. ValuEngine cut General Dynamics from a hold rating to a sell rating in a research note on Saturday, February 2nd. Finally, Argus cut General Dynamics from a buy rating to a hold rating and set a $170.91 target price for the company. in a research note on Thursday, January 31st. Two research analysts have rated the stock with a sell rating, eleven have given a hold rating and seven have assigned a buy rating to the company’s stock. General Dynamics currently has a consensus rating of Hold and an average target price of $197.82.
General Dynamics (NYSE:GD) last announced its quarterly earnings results on Wednesday, April 24th. The aerospace company reported $2.56 EPS for the quarter, beating analysts’ consensus estimates of $2.38 by $0.18. The company had revenue of $9.26 billion during the quarter, compared to analysts’ expectations of $8.90 billion. General Dynamics had a return on equity of 27.62% and a net margin of 8.68%. General Dynamics’s revenue was up 22.9% on a year-over-year basis. During the same period in the prior year, the business posted $2.65 EPS. As a group, sell-side analysts expect that General Dynamics will post 11.74 earnings per share for the current fiscal year.
The firm also recently declared a quarterly dividend, which was paid on Friday, May 10th. Stockholders of record on Friday, April 12th were paid a dividend of $1.02 per share. This is a boost from General Dynamics’s previous quarterly dividend of $0.93. This represents a $4.08 annualized dividend and a dividend yield of 2.45%. The ex-dividend date of this dividend was Thursday, April 11th. General Dynamics’s dividend payout ratio (DPR) is currently 35.73%.
In other news, VP Gary L. Whited sold 14,640 shares of the stock in a transaction that occurred on Friday, March 8th. The stock was sold at an average price of $165.38, for a total value of $2,421,163.20. Following the completion of the sale, the vice president now owns 30,462 shares of the company’s stock, valued at approximately $5,037,805.56. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Lester L. Lyles sold 4,580 shares of the stock in a transaction that occurred on Friday, February 22nd. The shares were sold at an average price of $172.42, for a total value of $789,683.60. Following the completion of the sale, the director now directly owns 12,314 shares of the company’s stock, valued at approximately $2,123,179.88. The disclosure for this sale can be found here. Insiders have sold a total of 64,690 shares of company stock valued at $11,052,603 over the last ninety days. Company insiders own 7.10% of the company’s stock.
Several hedge funds and other institutional investors have recently added to or reduced their stakes in GD. Oregon Public Employees Retirement Fund boosted its holdings in shares of General Dynamics by 14,601.4% in the 4th quarter. Oregon Public Employees Retirement Fund now owns 9,581,635 shares of the aerospace company’s stock valued at $61,000 after buying an additional 9,516,460 shares during the last quarter. Ellis Investment Partners LLC boosted its holdings in shares of General Dynamics by 16,833.7% in the 1st quarter. Ellis Investment Partners LLC now owns 960,820 shares of the aerospace company’s stock valued at $960,000 after buying an additional 955,146 shares during the last quarter. Renaissance Technologies LLC acquired a new stake in shares of General Dynamics in the 1st quarter valued at approximately $113,062,000. Vanguard Group Inc boosted its holdings in shares of General Dynamics by 1.7% in the 3rd quarter. Vanguard Group Inc now owns 20,905,951 shares of the aerospace company’s stock valued at $4,279,866,000 after buying an additional 357,032 shares during the last quarter. Finally, Wellington Management Group LLP boosted its holdings in shares of General Dynamics by 2.6% in the 1st quarter. Wellington Management Group LLP now owns 13,631,921 shares of the aerospace company’s stock valued at $2,307,611,000 after buying an additional 346,867 shares during the last quarter. 86.41% of the stock is owned by institutional investors.
General Dynamics Company Profile
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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