According to Zacks, “General Dynamics ended the first quarter of 2019 on an impressive note, with both earnings and revenues surpassing the Zacks Consensus estimates. The company boasts a strong position in the U.S. defense space and overseas. Apart from solid demand for its varied defense products leading to organic growth, a notable acquisition strategy also adds to General Dynamics’ inorganic growth. However, the company operates in a highly competitive market. Some competitors may have extensive or specialized business segments, which force the company to keep upgrading its technology. The company’s shares also underperformed its industry in the past twelve months. It is incurring high interest expenses.”
GD has been the subject of several other research reports. Cowen restated 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. upgraded General Dynamics from an underweight rating to a neutral rating and increased their target price for the company from $188.00 to $200.00 in a research note on Thursday, April 25th. They noted that the move was a valuation call. UBS Group increased their target price on General Dynamics from $175.00 to $190.00 and gave the company a neutral rating in a research note on Thursday, April 25th. Credit Suisse Group downgraded General Dynamics from an outperform rating to a neutral rating and decreased their target price for the company from $190.00 to $184.00 in a research note on Friday, February 15th. Finally, Drexel Hamilton restated a buy rating and set a $230.00 target price on shares of General Dynamics in a research note on Monday, February 4th. Two equities research analysts have rated the stock with a sell rating, eleven have assigned a hold rating and six have issued a buy rating to the company’s stock. General Dynamics presently has an average rating of Hold and a consensus price target of $198.43.
Shares of NYSE GD opened at $175.36 on Monday. The company has a current ratio of 1.23, a quick ratio of 0.82 and a debt-to-equity ratio of 0.94. The stock has a market cap of $51.04 billion, a PE ratio of 15.36, a P/E/G ratio of 1.69 and a beta of 1.13. General Dynamics has a 52 week low of $143.87 and a 52 week high of $208.88.
General Dynamics (NYSE:GD) last issued its quarterly earnings data on Wednesday, April 24th. The aerospace company reported $2.56 EPS for the quarter, beating the Zacks’ consensus estimate of $2.38 by $0.18. The business had revenue of $9.26 billion for the quarter, compared to analyst estimates of $8.90 billion. General Dynamics had a return on equity of 27.62% and a net margin of 8.68%. The firm’s revenue for the quarter was up 22.9% on a year-over-year basis. During the same quarter in the prior year, the firm posted $2.65 EPS. Research analysts expect that General Dynamics will post 11.74 earnings per share for the current year.
The company also recently disclosed a quarterly dividend, which will be paid on Friday, May 10th. Shareholders of record on Friday, April 12th will be given a $1.02 dividend. The ex-dividend date is Thursday, April 11th. This represents a $4.08 dividend on an annualized basis and a dividend yield of 2.33%. This is an increase from General Dynamics’s previous quarterly dividend of $0.93. General Dynamics’s dividend payout ratio (DPR) is currently 35.73%.
In other General Dynamics news, Director Lester L. Lyles sold 4,580 shares of the firm’s stock in a transaction that occurred on Friday, February 22nd. The stock was 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 owns 12,314 shares in the company, valued at approximately $2,123,179.88. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP John Patrick Casey sold 45,470 shares of the firm’s stock in a transaction that occurred on Monday, April 15th. The stock was sold at an average price of $172.46, for a total value of $7,841,756.20. Following the completion of the sale, the executive vice president now owns 148,133 shares of the company’s stock, valued at approximately $25,547,017.18. The disclosure for this sale can be found here. Insiders sold a total of 64,690 shares of company stock valued at $11,052,603 in the last quarter. Corporate insiders own 7.10% of the company’s stock.
Several hedge funds have recently made changes to their positions in GD. Man Group plc raised its holdings in shares of General Dynamics by 31.7% in the 3rd quarter. Man Group plc now owns 1,712 shares of the aerospace company’s stock worth $351,000 after buying an additional 412 shares in the last quarter. Legal & General Group Plc raised its holdings in shares of General Dynamics by 1.2% in the 3rd quarter. Legal & General Group Plc now owns 1,076,274 shares of the aerospace company’s stock worth $220,296,000 after buying an additional 13,119 shares in the last quarter. Morgan Stanley raised its holdings in shares of General Dynamics by 1.7% in the 3rd quarter. Morgan Stanley now owns 916,988 shares of the aerospace company’s stock worth $187,727,000 after buying an additional 15,746 shares in the last quarter. Vanguard Group Inc raised 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 worth $4,279,866,000 after buying an additional 357,032 shares in the last quarter. Finally, Great Lakes Advisors LLC raised its holdings in shares of General Dynamics by 5.7% in the 3rd quarter. Great Lakes Advisors LLC now owns 8,869 shares of the aerospace company’s stock worth $1,816,000 after buying an additional 479 shares in the last quarter. Institutional investors own 87.16% of the company’s stock.
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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